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Partnerships operate as both an entity and as a collection of individuals. When it comes to taxes, partnerships are a (an) ___________ and ___________

1 Answer

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Answer:

The correct answers are "collection of individuals " and "pay no income tax".

Step-by-step explanation:

A partnership itself does not pay income taxes directly. The partnership files an information return that allows it not to pay the income directly. However, while the partnership itself is not taxed on its income, each partner is taxed on his or her share of the partnership's income.

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