---
kind: "section"
citation: "26 U.S.C. § 701"
title: "26"
title_heading: "Internal Revenue Code"
number: "701"
heading: "Partners, not partnership, subject to tax"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/701"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter K — Partners and Partnerships"
  - "Part I — Determination of Tax Liability"
---

# §701. Partners, not partnership, subject to tax


A [partnership](/usc/26/761.md?p=a) as such shall not be subject to the income tax imposed by this chapter. Persons carrying on business as [partners](/usc/26/761.md?p=b) shall be liable for income tax only in their separate or individual capacities.


## Source credit

(Aug. 16, 1954, ch. 736, 68A Stat. 239.)