RS 01802.330 How to Develop Partnership Questions
A. OPERATING PROCEDURE
If a question is raised as to the validity of a partnership, determine whether the elements of a partnership described in RS 01802.316 are met. Document your findings in the file.
If there is a written partnership agreement, obtain a copy and a statement from the claimant as to whether:
Obtain Form SSA-7104, Partnership Questionnaire, (Form SSA-7157-F4, Farm Arrangement Questionnaire, if the business is a farm) from the claimant when:
There is no written agreement; or
The parties have not been operating under the terms of the agreement; or
The written agreement is insufficient to establish the status of the parties; or
It is evident that the agreement was changed by word or conduct; or
Other information raises a question as to the existence of the alleged partnership or the good faith of the parties; e.g., all income has been reported by one person.
NOTE: The forms are simply a vehicle to gather information. Other means may be used, but it is important to gather all relevant data to make a determination.
If the determination made is consistent with the reporting of SEI, do not develop further.
Corroboration from other partner(s) must be sought if the accuracy of earnings records is an issue.
If there is agreement on all essential points, no further corroboration is required.
If the partners do not agree on essential points, get statements from persons who know about the business.