Wash. Court of Appeals published opinion — 323820.opn.pdf

Citation: Wash. Court of Appeals published opinion — 323820.opn.pdf
Jurisdiction: Washington (state)
Source verification: official_capture_completeness_unverified
Original Source: https://www.courts.wa.gov/opinions/pdf/323820.opn.pdf ↗

Related Parts of This Source

Full Text

1,515 chars

partnership with his daughters; that the daughters also failed to establish accounts with

the department upon becoming partners in 2008; that Dr. Armand did not update his

registration with the Department of Revenue to reflect partnership operations; and that

Dr. Armand had continued through 2012 to report liability for federal taxes as a sole

26
             

DeFelice v. Emp 't Sec. Dep't
No. 32382-0-III- dissent

proprietorship. AR at 294 (findings 14, 15, and 16).11 As the majority recognizes, the

Internal Revenue Service has published a revenue procedure recognizing that a small

partnership (less than 10 partners) whose partners have fully reported their shares of the

income, deductions and credits of the partnership on their timely filed individual income

tax returns will satisfy the "reasonable cause" test for failure to timely file a partnership

tax return. Rev. Proc. 84-35, 1984-1 C.B. 509.

In determining the character of the business relations of parties, "[m]any times

form must give way to substance." State v. Bartley, 18 Wn.2d 477,481-82, 139 P.2d 638

(1943) (arrangement was partnership in form, but not in substance).

The RUP A is even more explicit on this score. It provides that "the association of

two or more persons to carry on as co-owners a business for profit forms a partnership,

whether or not the persons intend tolorm a partnership." RCW 25.05.055(1) (emphasis

II Conclusion 7 provided in part: