The state Department of Revenue Services issued guidelines June 16, 2018 on the new pass-through entity tax contained in Public Act 18-49, for income earned by limited liability companies treated as partnerships and S corporations.

The new law fundamentally changes how the state taxes income earned by partnerships and S corporations, collectively known as pass-through entities, for federal tax purposes.

The act represents the state's effort to neutralize some negative impacts of federal tax changes on Connecticut residents and, specifically, owners and partners of pass-through entity businesses.

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