A reportable entity partner with respect to a partnership filing Form 1065 or Form 1065-B is an entity that:
Owns or is deemed to own, directly or indirectly, under these instructions, a 50% or greater interest in the income, loss, or capital of the partnership on any day of the tax year, and
Was required to complete Schedule M-3 on its most recently filed U.S. federal income tax return or return of income filed prior to that day.