Nonresident Owner Withholding
KW-7 and KW-7S
NONRESIDENT OWNER OPTIONS
Limited liability companies (LLCs), S corporations, and
Form KW-7A - “Opt-out” Affidavit. If a nonresident partner,
partnerships (except publicly traded partnerships*) are required
shareholder, or member files an affidavit with the department by
to withhold Kansas income tax from a nonresident owner’s share,
which such nonresident owner agrees to be subject to the
whether distributed or undistributed, of Kansas taxable income
personal jurisdiction of the department for the purpose of
from the LLC, S corporation, or partnership. The nonresident owner
determining and collecting any Kansas taxes, including interest
withholding rate is 6.45% of the Kansas taxable income.
and penalties, the S corporation, partnership or LLC is not
Forms KW-7 and KW-7S are used to file and pay the Kansas
required to withhold with regard to that nonresident owner. In
withholding tax required on the Kansas taxable income of a non-
order to “opt out” of the withholding requirement, the nonresident
resident owner of a pass-through entity. If you have nonresident
owner must complete an affidavit (Form KW-7A) and provide it to
owners receiving taxable income from the pass-through entity,
the pass-through entity. A copy of the affidavit must be submitted
you must complete Forms KW-7 and KW-7S. These forms and
with the KW-7S in lieu of payment of the withholding tax for that
payment of the tax is due on or before the due date of the Kansas
nonresident owner for the first year only. Form KW-7A is available
income tax return of the pass-through entity, including extensions.
from our office or web site shown on the back.
LLCs, S corporations, and partnerships (except publicly traded
Withholding in lieu of Form K-40 or K-40C. If a nonresident
partnerships*) must also complete and furnish each nonresident
owner’s only source of Kansas income is such owner’s share of
owner on whose behalf Kansas tax was withheld with Form K-19,
the Kansas taxable income from a S corporation, partnership or
Statement of Nonresident Owner Withholding. This form provides
LLC, the withholding paid on behalf of such nonresident owner
each nonresident owner with the information needed to claim the
may be retained in satisfaction of that nonresident owner’s
withholding paid on a Kansas income tax return.
Kansas income tax liability, and a K-40 or K-40C will not be
For purposes of this section, the term “publicly traded partnership” means
required for that tax year. If the nonresident owner qualifies for
any partnership if: 1) interests in such partnership are traded on an
this election, check the box on Form KW-7S; no additional
established securities market, or 2) interests in such partnership are readily
documentation is required.
tradable on a secondary market – or the substantial equivalent thereof.