9037 / How is a partnership’s accounting period determined?

A partnership is one of the entities that is generally required to adopt a particular accounting period as specified under the regulations.1 A partnership’s accounting period is determined by reference to the partner’s required accounting period(s).² The partnership’s “required taxable year” can either be:

(1)  The tax year of the majority partnership interest;

(2)  The tax year of all the principal partners; or

(3)  If it cannot be established based on the majority partnership interest or principal partners, a calendar year.³