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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REV-413(P/S) EX (04-12)
INSTRUCTIONS FOR WITHHOLDING PA PERSONAL
PA DEPARTMENT OF REVENUE
INCOME TAX FROM NONRESIDENT OWNERS BY
PARTNERSHIPS AND PA S CORPORATIONS
PART 1. GENERAL INSTRUCTIONS
PA-20S/PA-65 Information Return.
Partnerships and PA S corporations with taxable PA-source income are:
When submitting the final nonresident withholding (catch-up)
payment for nonresident owners that are individuals, estates,
• Jointly liable with their nonresident partners and shareholders for
or trusts, print the last four digits of the entity's federal employer
payment of tax on such income to the extent allocable to the
identification number (FEIN) and 2012 Final Nonresident
nonresidents; and
Withholding on the check or money order made payable to the PA
• Authorized and required to withhold such tax from their nonresident
Dept. of Revenue.
owners and remit the tax to Pennsylvania.
When using approved software, submit the 2012 Nonresident
The imposition of the tax against the partnership or PA S corporation
Withholding Payment substitute voucher with a check or money
does not change the filing requirements or the tax liability of its
order and submit with the PA-20S/PA-65 Information Return, PA-40
nonresident owners.
NRC or extension request.
The nonresidents take credit for the tax withheld on their annual
Federal/State e-File
returns and treat their income from the partnership or PA S corporation
as income subject to withholding in calculating any other personal
The final nonresident withholding (catch-up) payment can only
estimated taxes. The nonresidents may not deduct their personal
be filed electronically when submitted with the return. Visit
estimated tax payments from the tax imposed on the partnership or
for more information.
PA S corporation.
COLLECTION OF NONRESIDENT WITHHOLDING
NONRESIDENT PARTNER OR SHAREHOLDER
If the partnership or PA S corporation maintains a drawing account for,
The terms nonresident partner and nonresident PA S corporation
or makes distributions or guaranteed payments to its nonresident
shareholder include owners that are nonresident individuals,
partner or shareholder and the withdrawals or distributions are
nonresident inter vivos or testamentary trusts or nonresident
sufficient to cover the tax withheld, PA law authorizes and requires
decedents' estates.
the entity to deduct the tax from the drawing account or distribution
when credited. Otherwise, the time and manner of collection of the
The entity may rely on its business records to determine the identity,
tax withheld shall be a matter of settlement between the partnership
the place of residence and the distributive share of income and losses
or PA S corporation and its partners or shareholders.
of each partner or shareholder. The entity may rely on such records,
unless and until the entity receives a notice furnished under federal
PART 3. STATEMENT OF NONRESIDENT WITHHOLDING
temporary regulation § 1.6031(c)-1t.
Each entity with income from sources within Pennsylvania must provide
each of its nonresident owners with a PA-20S/PA-65 Schedule NRK-1
PART 2. PAYMENT OF NONRESIDENT WITHHOLDING
showing the owner’s income, credits and tax withheld.
All partnerships and PA S corporations must collect and pay
nonresident quarterly withholding tax. Use Part A and Part B of Form
PART 4. FORMS COMPLETION INSTRUCTIONS
REV-414(P/S), PA Nonresident Tax Withholding Worksheet for
Use the PA Nonresident Tax Withholding Worksheet for Partnerships
Partnerships and PA S Corporations to figure the correct amount of
and PA S Corporations (REV-414(P/S) to determine the nonresident
2012 nonresident quarterly withholding tax. If the aggregate 2012 for
quarterly withholding amount. Use Form PA-40ES (P/S) or Form
nonresident quarterly withholding tax will be less than $500, the entity
PA-40ESR (F/C), Declaration of Estimated Personal Income Tax, to
must pay within 30 days of the close of the taxable year.
pay the 2012 nonresident quarterly withholding.
If the aggregate 2012 nonresident quarterly withholding tax will be
Use Part A and Part B of Form REV-414(P/S), PA Nonresident Tax
$500 or more, the entity may either pay all of the nonresident tax with
Withholding Worksheet for Partnerships and PA S Corporations to
the first payment or pay in installments when due. Use this table to
figure the correct amount of 2012 nonresident quarterly withholding to
determine the amount and due date for each installment of nonresident
pay. Keep a record of nonresident quarterly withholding payments
tax. If the due date falls on a Saturday, Sunday or legal holiday, the
made and the amount of remaining nonresident quarterly payments
due date is the next business workday. Interest on underpayments
on the Record of Withholding Payments. Use Part D of Form
of nonresident quarterly withholding tax shall run from the due date
REV-414(P/S), PA Nonresident Tax Withholding Worksheet for
to the 30th day following the close of the taxable year.
Partnerships and PA S Corporations to figure the correct balance
FINAL CATCH-UP PAYMENT OF NONRESIDENT WITHHOLDING
of nonresident quarterly withholding due when filing the 2012
If the tax of the nonresident owners exceeds the nonresident quarterly
PA-20S/PA-65 Information Return. Use Form PA-40ES (P/S) or
withholding tax payments, the partnership or PA S corporation must
Form PA-40ESR (F/C) forms for properly paying the nonresident
pay the deficiency by the date prescribed for filing the entity's
quarterly withholding.
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 legal 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
By the 15th day
By the 15th day
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
4
25%
25%
25%
25%
After the last day of the 3rd month-
3
25%
50%
25%
before the 1st of the 7th month
After the last day of the 6th month-
2
75%
25%
before the 1st of the 10th month
After the last day of the 9th month
1
100%

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