2.1.  DPP Tax Reporting Requirements

Companies that pass through all their income and losses to their investors are considered “conduits” or pipelines for tax purposes. A conduit entity is a tax reporting entity that reports its capital gains, interest, and dividends to the IRS but does not pay taxes on that income. A taxable entity is the person that pays the taxes on that income. Conduit entities include partnerships, limited partnerships, limited liability companies, S corporations, and investment