Explain how the partnership is taxed
Using a minimum of 450 words, discuss some advantages and disadvantages of structuring your firm as a partnership.
•Explain how the partnership is taxed. You know that the partnership is considered a flow-through entity, meaning it is not taxed as a business; however, the IRS does indeed collect tax from the partnership’s income. Explain how the IRS accomplishes this and what forms are required to report income to the IRS to pay taxes.
•Finally, other than the income tax discussed above, what other taxes are collected and what forms are utilized to pay these?