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In this segment, the discussion focuses on Chapter 21, which covers partnerships, and hints at the subsequent topic of S corporations in Chapter 22. Both partnerships and S corporations are characterized as pass-through entities. They file tax returns primarily to report distributions made to partners or shareholders, enabling individuals to complete their personal tax returns (such as the 1040). The conversation notes that the tax consequences associated with forming a partnership are quite similar to those of forming corporations. The aim is to understand the implications of these structures on individual tax obligations.