disreg

Disreg is an informal shorthand referring to the concept of disregarding something in regulatory or tax contexts. It most often occurs in discussions about how certain entities or actions are treated for tax or legal purposes, where the entity or item is treated as if it does not exist for some calculations.

In tax law, the term disregarded entity refers to a business entity that is not treated as separate from its owner for federal income tax purposes. The most common example is a single-member limited liability company (LLC). A disregarded entity's income, deductions, and credits are reported on the owner's tax return; the entity itself does not file a separate federal income tax return unless it elects to be taxed as a corporation. This treatment is part of pass-through taxation and can apply to other entities such as certain grantor trusts under specific rules.

In practice, the concept of disregard is used to simplify or clarify tax results and to influence liability and regulatory treatment. The term disregarded is distinct from the everyday meaning of disregard, which is to pay no attention.

The term disreg is not a formal legal term in itself; it is a shorthand that appears in notes or informal discussions. For precise legal or tax implications, the formal term disregarded entity or the relevant statutes should be consulted.