If Part II of the Schedule E shows a "P" in the area designated "Enter "P" for partnership; "S" for S Corporation," the household is involved in a Partnership. This means that the case manager will need to request certain IRS documents which are related to the status and income of the Partnership. The following IRS documents will be needed in order to determine the countable Partnership income:
* IRS Form 1065 - "U.S. Partnership Return of Income" – usually four pages in length, however, the "balance sheet" may not be included if it is not used;
* Schedule K-1 (Form 1065) - "Partner's Share of Income, Credits, Deductions, etc." - two pages in length, but sometimes the second page is not completed;
* (As Appropriate) - If the Partnership is involved in a farming operation, the Partnership must file a Schedule F.
Each partner in the Partnership should either have or be able to obtain a copy of the Partnership return and appropriate schedules.
(Rev. November 1, 1999)