IRS Issues Final Rules on Disregarded Entities, Indoor Tanning Services Excise Tax

The Internal Revenue Service issued final rules treating disregarded entities as separate entities for the purpose of collecting the indoor tanning services excise tax created by the Affordable Care Act.

The final regulations (T.D. 9670; RIN 1545-BJ06, RIN 1545-BK38), issued June 25, also provide certain exceptions or exemptions from taxes under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA) to services performed in the employ of certain entities that are generally disregarded as separate from their owners for federal tax purposes.

The rules remove final and temporary regulations (T.D. 9554) issued in 2011 ...