Form 740np-Wh (State Form 40a201) - Kentucky Nonresident Income Tax Withholding On Distributive Share Income Report And Composite Income Tax Return - 2012 Page 2
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240A201 (10-12)
Page 2
Commonwealth of Kentucky
INSTRUCTIONS—Form 740NP-WH
DEPARTMENT OF REVENUE
A pass-through entity must complete this form and mail with payment to the Kentucky Department of Revenue by the 15th day of the
fourth month following the close of the taxable year. Copy(ies) A of Form PTE-WH, or approved substitute, must be included.
Purpose of this Form—Form 740NP-WH (40A201) is used by every pass-through entity required to file a return as provided by KRS
141.206(2), except publicly traded partnerships as defined in KRS 141.0401(6)(r), to withhold Kentucky income tax on the distributive
share, whether distributed or undistributed, of each nonresident individual partner, member or shareholder; or each C corporation
partner or member that is doing business in Kentucky only through its ownership interest in a pass-through entity. Withholding shall
be at the maximum rate provided in KRS 141.020 or 141.040. It is also used to file a composite income tax return for those electing
nonresident individual partners, members or shareholders exempt from withholding.
“Individual” means an individual, estate or trust. The tax imposed by KRS 141.020 upon individuals shall apply to estates and trusts
and to all fiduciaries. KRS 141.030(1)
A “Partnership or S corporation partner, member or shareholder” is not subject to withholding. A partnership or S corporation is
classified as a pass-through entity as provided by KRS 141.010(26) and is not classified as a corporation or an individual.
Form PTE-WH (40A200) shall be completed for each partner, member or shareholder, and Copy A of PTE-WH for each partner, member
or shareholder shall be attached to the 740NP-WH filed with the Department of Revenue. The total of the income tax withheld on the
PTE-WH forms, Line 9 must equal the amount on 740NP-WH, Line 9. Also, see the instructions on PTE-WH.
Penalty and Interest—Effective for taxable years beginning on or after January 1, 2012, every pass-through entity required to withhold
Kentucky income tax as provided by KRS 141.206(5) or files a composite income tax return as provided by KRS 141.206(16)(a) shall make
a declaration and payments of estimated tax as required by KRS 141.206(6) if: (i) a nonresident partner’s, member’s or shareholder’s
estimated tax liability can reasonably be expected to exceed $500; or (ii) a corporate partner’s or member’s estimated tax liability
can reasonably be expected to exceed $5,000. Complete Form 740NP-WH-P to compute the penalty and interest for late payment or
underpayment of estimated tax installments.
SPECIFIC INSTRUCTIONS
Line 5 – Enter the apportionment fraction from the pass-through
entity’s Schedule A, Section I, Line 12.
Enter taxable year ending at the top right of Form 740NP-WH.
Line 6 – Enter the amount of Line 4 multiplied by Line 5.
The taxable year ending is the same as the pass-through entity’s
taxable year.
Line 7 – Enter the amount of Line 6 multiplied by .06 (6%).
Item A – Enter the pass-through entity’s name and address.
Line 8 – Enter the partners’, members’ or shareholders’
nonrefundable tax credits from Schedules K-1. Note: Allowable
Item B – Enter the pass-through entity’s Federal Employer
tax credits are allowed only if the credits are reasonably
Identification Number.
expected to be claimed in the current taxable year. For example,
the recycling and composting tax credit allowed pursuant to
Item C – Enter the pass-through entity’s Kentucky Corporation/
KRS 141.390 shall be limited to the lesser of ten percent (10%)
LLET Account Number.
of the total credit in the year of purchase or twenty-five percent
(25%) of the entity’s tax liability. Carryforward tax credits not
Item D – Check the box to indicate the type of return the pass-
included on the current Schedule(s) K-1 shall not be allowed.
through entity is filing. Also check the applicable box to indicate
a change of name, change of address, change of accounting
Line 9 – Enter the amount on Line 7 less Line 8.
period or final return.
Line 10 – Enter the total estimated tax payments (Form 740NP-
LINE-BY-LINE-INSTRUCTIONS
WH-ES Vouchers) made for the taxable year. Do not include the
amount credited from the prior year.
Line 1 – If filing a nonresident distributive share income
withholding report, enter the number of nonresident individuals,
Line 11 – Enter the tax payment made with Form 40A201NP-WH-
estates, trusts and corporations included in this withholding on
SL, Application for Six-Month Extension of Time to File Form
distributive share income report. Do not include exempt entities
740NP-WH (40A201).
included on Line 2.
Line 12 – Enter the amount credited to 2012 from Form 740NP-
Line 2 – If filing a nonresident distributive share income
WH, Line (15) of the 2011 return.
withholding report, enter the number of nonresident individuals,
estates, trusts and corporations exempt from withholding on
Line 13 – If Line 9 is greater than the total of Lines 10 through
distributive share income.
12, enter the difference on this line and enter the amount in the
Tax Payment Summary.
Line 3 – If filing a composite income tax return, enter the number
of nonresident individuals, estates and trusts included in this
Line 14 – If Line 9 is less than the total of Lines 10 through 12,
composite income tax return.
enter the difference on this line.
Line 4 – Enter the distributive share income of the nonresident
Line 15 – Enter the portion of Line 14 to be credited to 2013.
individuals, estates, trusts and corporations included on Line
1, or the distributive share income of nonresident individuals,
Line 16 – Enter the portion of Line 14 to be refunded (Line 14
estates and trusts included on Line 3.
less Line 15).
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