Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return (Page 2 of 9) in pdf

Entertainment Entity

An entertainment entity is defined as any business association, partnership, corporation, S corporation or

tax-exempt organization that employs nonresident individuals who perform services within the context of

the normal business operations within the Commonwealth of Pennsylvania. Examples of entertainment

entities include, but are not limited to, NASCAR drivers, musical groups or individual singers, comedy

performers, golfers, other personal service corporations, circuses, off-Broadway musicals or plays,

dancing troupes or individual dancers, boxing, dog and horse shows, ice skating, etc.

NOTE: Entities may obtain additional information concerning withholding of PA Personal Income Tax in

the brochure,

Pennsylvania Employer Withholding (REV-580),

and register to withhold by completing

the

PA Enterprise Registration Form

(PA-100). Both documents can be found at the Department’s

Web site at

Qualified Individual Documentation Requirements

The entity must complete a

PA Schedule NRC-AE-1

for each of its nonresident individuals. The entity

must maintain for inspection at its principal office the following:

The list of all electing and non-electing nonresident individuals with all pertinent

information for the nonresident individuals such as the name, address, Social Security

Number, apportioned compensation, tax due before application of payments and credit,

share of tax withheld or payments, and share of overpayment, if any.

One of the following:

A certification that each of the nonresident individuals on a PA Schedule NRC-

AE-1 have elected and agreed to file as a participant in a PA consolidated group

return for the taxable year; or

A copy of the agreement that evidences that each of the qualified nonresident

individuals on a PA Schedule NRC-AE-1 elected to file as a participant in a PA

consolidated group return for the taxable year.

Effect of a Consolidated Group Return

Unless rejected, the Department considers the PA-40 NRC-AE a group of separate PA returns that meet

the individual filing requirements of the Pennsylvania law. The Department’s acceptance of a PA-40

NRC-AE is tentative and subject to revocation upon audit or review. The Department retains the right at

any time to require nonresident individuals to file a PA-40 form. The Department also retains the right to

withdraw and modify the authority to file a PA-40 NRC-AE. A participating nonresident individual may not

change his or her election to file from PA-40 NRC-AE to a PA-40 or from a PA-40 to a PA-40 NRC-AE

after filing the PA tax returns unless the entity files an amended PA-40 NRC-AE removing the nonresident

individual from those electing to be included in the consolidated filing and (if required) the nonresident

individual files a separate PA-40 return.

GENERAL INSTRUCTIONS

Identification Information

File the PA-40 NRC-AE under the FEIN, name, and address of the entity. Input for the name of the entity

is limited to 50 characters (including spaces).

Final Return

If the entity is out of business, fill in this oval, enter the date the entity went out of existence, and explain

the reason for filing the return.

Number of Nonresidents Electing

Enter the number of nonresident individuals electing to file on the PA-40 NRC-AE form.

Total Number of Nonresidents

Enter the number of all nonresident individuals. If every nonresident elects to file on the PA-40 NRC-AE,

this number will be the same as the Number of Nonresidents Electing.

Instructions For Form Pa-40 Nrc-Ae - Consolidated Personal Income Tax Return Page 2

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