To avoid potential structuring to circumvent the US conduit financing rules, on 9 December 2011, the US Internal Revenue Service finalized regulations that treat disregarded entities as persons for purposes of the US conduit financing regulations. This means that all business entities within a financing structure will need to be tested under the conduit financing regulations if a portion of the financing structure relies upon the US treaty network or US domestic exceptions to obtain a reduction of withholding on payments of interest.