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.]

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词条贡献者

资深译员Jeffrey，毕业于一所培养高级翻译以及跨文化事务专家的精英大学，专注翻译各种与建设工程诉讼有关的法律文件。