EXPANSION OF SMALL PARTNERSHIP EXCEPTION.

SEC. 1234. EXPANSION OF SMALL PARTNERSHIP EXCEPTION. (a) In General.—Clause (i) of section 6231(a)(1)(B) (relating to exception for small partnerships) is amended to read as follows: “(i) In general.—The term ‘partnership’ shall not include any partnership having 10 or fewer partners each of whom is an individual (other than a nonresident alien), a C corporation, or an estate of a deceased partner. For purposes of the preceding sentence, a husband and wife (and their estates) shall be treated as 1 partner.”. (b) Effective Date.—The amendment made by this section shall apply to partnership taxable years ending after the date of the enactment of this Act.