In my experience, based solely on my participation in this forum for the last 10 years, the biggest problem I've seen when filing on individual tax returns, is when doing an unconventional transfer of assets of only one partner. Be it via sale, gifting, inheritance, or divorce in a community property state. It creates a paperwork nightmare for "all" partners when something like that happens. That's one reason I've never been a fan of partnerships. Multi-member LLC's yes. Partnerships, no.
