pass through taxation

The taxation of an entity’s owners for the entity’s income without taxing the entity itself.

• Partnerships and S corporations are taxed under this method. So are limited liability companies and limited liability partnerships unless they elect to be taxed as corporations by “checking the box” on their income tax returns. The election is made on Form 8832 (Entity Classification Election). See Treas. Reg. § 301.7701–(3)(b)(1).

— Also termed conduit taxation. [Cases: Internal Revenue 3896, 3920–3924. C.J.S. Internal Revenue §§ 376–377, 427, 429.]

---

词条贡献者

译者晓晨，毕业于世界顶级翻译学院，擅长翻译各种与反垄断咨询与合规相关的法律文件。