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Check the Corresponding Box, If Applicable Hacienda Gobierno Form

Check the Corresponding Box, If Applicable Hacienda Gobierno Form

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an example three of Regulation 1.70 1-2 D Corp X a u.s. corporation owned 50% of PRS a foreign entity the other 50% of PRS was owned by corporation the example states that PRS is classified as a partnership for US tax purposes under the entity classification regulations note that it is often necessary to make an affirmative entity classification election also known as a check the Box election to treat foreign entities as partnerships if all of the owners of a foreign entity have limited liability the entity defaults to be treated as a corporation for US tax purposes note that the default classification rule for foreign entities is not the same as the default classification rule for US entities u.s. LLC's with more than one owner default to be classified as partnerships with no need to make an entity classification election unfortunately some domestic tax advisers who are not familiar with these rules believe that a foreign limited liability company will default a partnership classifica

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