Ark. Code R. 26-51-405 - 1(a) (1997) - Partnerships

A partnership must keep records showing the participation of the partners, the interest owned by them, duties performed and services rendered in the operation of the business. A partnership as such is not subject to taxation but it must make a return of income, which return properly reflects the net income for each partner. Individuals carrying on business in partnership are taxable upon their distributive shares of the net income of such partnerships, whether distributed or not, and are required to include such distributive shares in their individual returns.