Which of the following statements regarding the process for determining a partnership’s tax year-end is false?
Multiple Choice
The least aggregate deferral test utilizes the partners’ profits interests to measure the amount of aggregate deferral.
Only the partners’ profits interests are relevant when determining if a partnership has a majority interest taxable year.
A partnership uses the tax year with the least aggregate deferral only if there is no majority interest tax year and the principal partners don’t have the same year-end.
Under the principal partners test, a principal partner is defined as a partner having an interest of 5% or more in the profits or capital of the partnership.