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

译员海燕，毕业于法国顶尖的高级翻译学院，专注翻译各种与破产对抗诉讼有关的法律文件。