More specifically, the IRS and Treasury clarified the exemptions for certain partners and certain transactions and confirmed that a reduced (or zero) withholding rate may be applied without obtaining written approval from the IRS (as is required in many FIRTPA transactions). Additionally, the updated “de minimis” exceptions may provide a broader exemption for foreign partners that have received allocations of $1 million or less in effectively connected taxable income (ECTI) for each of the three immediately preceding taxable years, as well as for disposition of interests in partnerships with less than 10 percent effectively connected assets