§ 775. Electing large partnership defined
(a)
General rule
For purposes of this part—
(1)
In general
The term “electing large partnership” means, with respect to any partnership taxable year, any partnership if—
(A)
the number of persons who were partners in such partnership in the preceding partnership taxable year equaled or exceeded 100, and
To the extent provided in regulations, a partnership shall cease to be treated as an electing large partnership for any partnership taxable year if in such taxable year fewer than 100 persons were partners in such partnership.
(b)
Special rules for certain service partnerships
(1)
Certain partners not counted
For purposes of this section, the term “partner” does not include any individual performing substantial services in connection with the activities of the partnership and holding an interest in such partnership, or an individual who formerly performed substantial services in connection with such activities and who held an interest in such partnership at the time the individual performed such services.
(2)
Exclusion
For purposes of this part, an election under subsection (a) shall not be effective with respect to any partnership if substantially all the partners of such partnership—
(d)
Secretary may rely on treatment on return
If, on the partnership return of any partnership, such partnership is treated as an electing large partnership, such treatment shall be binding on such partnership and all partners of such partnership but not on the Secretary.