IRS Extends Tax Exceptions for Disregarded Entities, Including Family Members and Members of Certain Religious Faiths

Summary

The IRS is correcting its temporary regulations to extend tax exceptions for FICA and FUTA to disregarded entities, including family members and members of certain religious faiths. The regulations, published on November 1, 2011, clarify the responsibilities of disregarded entity owners for backup withholding and related reporting requirements.