Instructions For Pa-40 Nrc - Nonresident Consolidated Income Tax Return

2012

Pennsylvania Department of Revenue

Instructions for PA-40 NRC

Nonresident Consolidated Income Tax Return

Another entity such as a

individual owners, the limited liability

What’s New

partnership, S corporation or limited

company is still required to file the

The PA-40 NRC-O has been

liability company may not be

RCT-101, PA Corporate Tax Report,

eliminated beginning with 2012 tax

included in the filing of the PA-40

and report capital stock/foreign

year.

NRC, Nonresident Consolidated

franchise tax.

Income Tax Return.

General Information

Qualifying To File the

Who May File

PA-40 NRC

An entity may file a PA-40 NRC,

Purpose of Form

The nonresidents of Pennsylvania

Nonresident Consolidated Income

The PA-40 NRC, Nonresident

must meet these requirements:

Tax Return on behalf of its qualifying

Consolidated Income Tax Return, is a

●

The owner must be an individual

electing nonresident individual

nonresident consolidated tax return

whose tax year is the calendar year.

owners (partner, member, or

used to report the income (losses),

An estate or a trust may not be

shareholder).

deductions, credits, etc. on behalf of

included in the filing of the PA-40

There must be more than one

qualifying electing nonresident

NRC, Nonresident Consolidated

nonresident owner included on the

individual owners of foreign or

Income Tax Return regardless of how

PA-40 NRC, Nonresident

domestic PA S corporations,

the trust is taxed. PA law 72 P.S. §

Consolidated Income Tax Return, to

partnerships or entities formed as

7301 (I) defines individual as “a

make an election to file this tax

limited liability companies classified

natural person and shall include the

return and those owners must meet

as partnerships or PA S corporations

members of a partnership or

the filing requirements. See

What To

(further references are entitled as

association and the shareholders of a

File.

entity or entities) for federal income

Pennsylvania S corporation.”

tax purposes.

●

The owner and the owner’s spouse

Note.

Include only the

must each be a domiciliary of a state

individual nonresident owners

Caution.

or country other than Pennsylvania

The PA-40 NRC,

that elect to be included on the PA-

during the calendar year.

Nonresident Consolidated

40 NRC, Nonresident Consolidated

●

The owner and the owner’s spouse

Income Tax Return must be filed in

Income Tax Return.

must not maintain a permanent place

paper form. It cannot be filed

of abode in Pennsylvania during

electronically.

Filing the PA-20S/

calendar year.

PA-65 Information

●

Who Cannot be

The owner must have no other

Pennsylvania-taxable income derived

Return

Included in a PA-40

from, or connected with Pennsylvania

The filing requirements for the PA-

sources other than his or her

NRC, Nonresident

20S/PA-65 do not change if the

distributive share of income (loss) for

Consolidated Income

entity files a PA-40 NRC, Nonresident

the calendar year. For example: The

Consolidated Income Tax Return.

owner may not have more than one

Tax Return

If an entity filed a PA-40 NRC,

Pennsylvania-source of income.

The entity may not include a

Nonresident Consolidated Income

●

The owner must elect to join in the

nonresident owner (partner, member

Tax Return, on behalf of its qualifying

filing of the PA-40 NRC, Nonresident

or shareholder) on the PA-40 NRC,

electing nonresident individual

Consolidated Income Tax Return.

Consolidated Income Tax Return if

owners, the entity is still required to

the owner has not elected to join in

file the PA-20S/PA-65 Information

the filing of the PA-40 NRC,

What To File

Return and issue PA-20S/PA-65

Nonresident Consolidated Income

Schedules RK-1 and NRK-1 to it

The election to be included in a PA-

Tax Return.

owners. Please refer to the

40 NRC, Nonresident Consolidated

The entity may not include an

instructions for the PA-20S/PA-65

Income Tax Return should be

owner (partner, member or

Information Return.

reviewed annually to assure the

shareholder) on the PA-40 NRC,

taxpayer meets the qualifications

Consolidated Income Tax Return if

Important.

If an entity

required for the election, and the

the owner is a partner, member or

formed as a limited liability

entity's records clearly show all the

shareholder in more than one entity

company classified as a partnership

information required for the current

with Pennsylvania-source income.

or PA S corporation for federal

tax year, as listed below. See

An estate or a trust may not be

income tax purposes filed a PA-40

Maintaining Records – Signed

included in the filing of the PA-40

NRC, Nonresident Consolidated

Statements.

NRC, Nonresident Consolidated

Income Tax Return on behalf of its

The entity must complete PA-40

Income Tax Return regardless of how

qualifying electing nonresident

Schedule

NRC-I, Directory of

the trust is taxed.

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Instructions For Pa-40 Nrc - Nonresident Consolidated Income Tax Return - 2012

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