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Temporary Regulations Clarify Employment Tax Treatment of Partners in Partnership That Owns a Disregarded Entity (T.D. 9766; REG-114307-15)

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The IRS has issued temporary regulations under Code Sec. 7701 to clarify that a disregarded entity that is treated as a corporation for employment tax purposes is not treated as a corporation for purposes of employing an individual who is a partner in a partnership that owns the disregarded entity.

Under [...]


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