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How does the SC1065 partnership return avoid withholding on exempt income?

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How does the SC1065 partnership return avoid withholding on exempt income?

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Line 3 of SC1065 deducts any amount of income from line 2 that is exempt from withholding because of I-309 affidavits and composite filing. The partnership or LLC taxed as a partnership should include a statement explaining the adjustment.

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