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REV-413(P/S) EX (08-12)

INSTRUCTIONS FOR WITHHOLDING PA PERSONAL

PA DEPARTMENT OF REVENUE

INCOME TAX FROM NONRESIDENT OWNERS BY

PARTNERSHIPS AND PA S CORPORATIONS

PART 1. GENERAL INSTRUCTIONS

When submitting the final nonresident withholding (catch-up)

payment for nonresident owners that are individuals, estates,

Partnerships and PA S corporations with taxable PA-source income are:

or trusts, print the entity's federal employer identification number

• Jointly liable with their nonresident partners and shareholders for

(FEIN) and 2013 Final Nonresident Withholding on the check or

payment of tax on such income to the extent allocable to the

money order made payable to the PA Dept. of Revenue.

nonresidents; and

• Authorized and required to withhold such tax from their nonresident

When using approved software, you must include the 2013

owners and remit the tax to Pennsylvania.

Nonresident Withholding Payment substitute voucher with a check

or money order and submit with the PA-20S/PA-65 Information

The imposition of the tax against the partnership or PA S corporation

Return, PA-40 NRC or extension request.

does not change the filing requirements or the tax liability of its

nonresident owners.

Fed/State e-File

The nonresidents take credit for the tax withheld on their annual

The final nonresident withholding (catch-up) payment can only

returns and treat their income from the partnership or PA S corporation

be filed electronically when submitted with the return. Visit

as income subject to withholding in calculating any other personal

for more information.

estimated taxes. The nonresidents may not deduct their personal

COLLECTION OF NONRESIDENT WITHHOLDING

estimated tax payments from the tax imposed on the partnership or

If the partnership or PA S corporation maintains a drawing account

PA S corporation.

for, or makes distributions or guaranteed payments to its nonresi-

NONRESIDENT PARTNER OR SHAREHOLDER

dent partner or shareholder and the withdrawals or distributions are

The terms nonresident partner and nonresident PA S corporation

sufficient to cover the tax withheld, Pennsylvania law authorizes

shareholder include only owners that are nonresident individuals,

and requires the entity to deduct the tax from the drawing account

nonresident inter vivos or testamentary trusts or nonresident

or distribution when credited. Otherwise, the time and manner of

decedents' estates.

collection of the tax withheld shall be a matter of settlement between

The entity may rely on its business records to determine the identity,

the partnership or PA S corporation and its partners or shareholders.

the place of residence and the distributive share of income and losses

PART 3. STATEMENT OF NONRESIDENT WITHHOLDING

of each partner or shareholder. The entity may rely on such records,

Each entity with income from sources within Pennsylvania must provide

unless and until the entity receives a notice furnished under federal

each of its nonresident owners with a PA-20S/PA-65 Schedule NRK-1

temporary regulation § 1.6031(c)-1t.

showing the owner’s income (losses), credits and tax withheld.

PART 2. PAYMENT OF NONRESIDENT WITHHOLDING

PART 4. FORMS COMPLETION INSTRUCTIONS

All partnerships and PA S corporations must collect and pay

Use the REV-414 (P/S), PA Nonresident Tax Withholding Worksheet

nonresident quarterly withholding tax. Use Part A and Part B of the

REV-414(P/S), PA Nonresident Withholding Tax Worksheet for

for Partnerships and PA S Corporations, to determine the nonresident

quarterly withholding amount. Use the PA-40ES (P/S) pre-printed

Partnerships and PA S Corporations to figure the correct amount of

2013 nonresident quarterly withholding tax. If the aggregate 2013

form from the department or PA-40ESR (F/C), Declaration of

nonresident quarterly withholding tax will be less than $500, the entity

Estimated or Estimated Withholding Tax for Fiduciaries &

must pay within 30 days of the close of the taxable year.

Partnerships, tax forms to pay the 2013 nonresident quarterly

withholding.

If the aggregate 2013 nonresident quarterly withholding tax will be

$500 or more, the entity may either pay all of the nonresident tax with

Use Part A and Part B of the REV-414(P/S), PA Nonresident Tax

the first payment or pay in installments when due. Use this table to

Withholding Worksheet for Partnerships and PA S Corporations to

determine the amount and due date for each installment of nonresident

figure the correct amount of 2013 nonresident quarterly withholding

tax. If the due date falls on a Saturday, Sunday or legal holiday, the

to pay. Use Part C to keep a record of nonresident quarterly

due date is the next business workday. Interest on underpayments

withholding payments made and the amount of remaining nonres-

of nonresident quarterly withholding tax shall run from the due date

ident quarterly payments. Use Part D to figure the correct balance

to the 30th day following the close of the taxable year.

of nonresident quarterly withholding due when filing the 2013

PA-20S/PA-65 Information Return. Use the PA-40ES (P/S) or

FINAL CATCH-UP PAYMENT OF NONRESIDENT WITHHOLDING

PA-40ESR (F/C) forms for properly paying the nonresident quarterly

If the tax of the nonresident owners exceeds the nonresident quarterly

withholding.

withholding tax payments, the partnership or PA S corporation must

pay the deficiency by the date prescribed for filing the entity's

If the partnership or PA S corporation does not receive its preprinted

PA-20S/PA-65 Information Return.

Forms PA-40ES (P/S) forms or the forms are damaged, use

The entity should pay the following percentages of the withholding by the date shown or the

next business day if the due date falls on a Saturday, Sunday or holiday.

If the entity can reasonably determine

The required number

that its aggregate nonresident

of withholding

withholding will exceed $500 for the

installments is:

By the 15th day

of the 1st month

taxable year:

of the 4th month

of the 7th month

of the 10th month

after the close of

the tax year

Before the 1st day of the 4th month

25%

After the last day of the 3rd month-

50%

25%

before the 1st of the 7th month

After the last day of the 6th month-

25%

75%

before the 1st of the 10th month

After the last day of the 9th month

100%

07PDR084583

Form Rev-413(P/s) Ex - Instructions For Withholding Pa Personal Income Tax From Nonresident Owners By Partnerships And Pa S Corporations

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