Program Operations Manual System (POMS)
RS 01802.306 Earnings from Partnerships — Operating Policy
The partnership must be carrying on a trade or business in order that a partner's
share of earnings be considered NESE.
The earnings must not be excluded as rent, dividends, etc.
The individual members of the partnership are considered to be self-employed, and
are credited with their distributive share of ordinary partnership income, whether
or not actually distributed. See RS 01802.360 and RS 01802.375.