Form 41a765(I) - 2013 Kentucky Partnership Income And Llet Return

For taxable years beginning on or after January 1, 2012, a

Kentucky Nonresident Income Tax Withholding on Distributive

pass-through entity required to withhold Kentucky income

Share Income Report and Composite Income Tax Return. The

tax as provided by KRS 141.206(5) shall make estimated tax

composite return box on the front of the Form 740NP–WH form

payments if required by KRS 141.206(6). If the pass-through

must be checked to indicate that this is a composite return, and

entity is required to make estimated tax payments for taxable

a Form PTE–WH must be completed for each of the electing

years beginning on or after January 1, 2012, use Form 740NP-

nonresident individual partners, members or shareholders.

WH-ES (Kentucky Estimated Tax Vouchers).

The composite return box on each Form PTE–WH must be

checked to indicate that it is part of a composite return. The

The reporting of a nonresident individual’s, estate’s or trust’s

tax due for the electing partners, members or shareholders

net distributive share income and withholding on Form

shall be remitted with the composite return.

740NP–WH at the maximum rate of six (6) percent shall satisfy

the filing requirements of KRS 141.180 for a nonresident

For taxable years beginning on or after January 1, 2012, a

individual, estate, or trust partner, member or shareholder

pass-through entity filing a composite return shall make

whose only Kentucky source income is net distributive share

estimated tax payments if required by KRS 141.206(6). If

income. The nonresident individual, estate or trust partner,

the pass-through entity is required to make estimated tax

member or shareholder may file a Kentucky Individual

payments for taxable years beginning on or after January

Income Tax Return Nonresident or Part–Year Resident (Form

1, 2012, use Form 740NP-WH-ES (Kentucky Estimated Tax

740–NP) or a Kentucky Fiduciary Income Tax Return (Form

Vouchers).

741) to take advantage of the graduated tax rates, credits and

deductions.

Substitute Forms—Any form to be used in lieu of an official

Department of Revenue form must be submitted to the

A pass–through entity shall complete Form 740NP–WH and

department for prior approval.

Form PTE–WH for each nonresident individual, estate or

trust partner, member or shareholder and each corporate

Required Forms and Information—A partnership must enter all

partner or member and mail Form 740NP–WH and Copy A of

applicable information on Form 765, attach a schedule for each

Form PTE–WH to the Kentucky Department of Revenue with

line item or line item instruction which states “attach schedule,”

payment of any tax due by the 15

day of the fourth month

and attach the following forms or schedules, if applicable:

following the close of the pass-through entity’s taxable year.

Also, Copy B and C of Form PTE–WH shall be provided to the

Kentucky Forms and Schedules

partners, members or shareholders. Form 740NP–WH and

1. Kentucky Partnership Income and LLET Return (Form 765)

Form PTE–WH are available at

2. Kentucky Partner’s Share of Income, Credits, Deductions,

Etc.—Schedule K–1 (Form 765)

Composite Return —Nonresidents Only

3. Apportionment and Allocation (Schedule A)

Do not include a nonresident individual (includes an estate

4. Apportionment and Allocation—Continuation Sheet

or trust partner, member or shareholder) partner, member or

(Schedule A–C)

shareholder in a composite return if the partner’s, member’s

5. Limited Liability Entity Tax (Schedule LLET)

or shareholder’s distributive share income was subject to

6. Limited Liability Entity Tax—Continuation Sheet (Schedule

withholding and reported on Form 740NP–WH and PTE–WH.

LLET–C)

7. Application for Filing Extension (Form 41A720SL)

The composite return applies only to nonresident individual

8. Tax Credit Summary Schedule (Schedule TCS)

(includes an estate or trust partner, member or shareholder)

9. Other Additions And Subtractions To/From Federal Ordinary

partners, members or shareholders: (i) whose distributive share

Income (Schedule O–PTE)

income was not subject to withholding as provided by KRS

141.206(5); (ii) whose only source of income within this state

Required Federal Forms and Schedules

is distributive share income from one or more pass–through

All partnerships must provide a copy of the following federal

entities; and (iii) that elect to be included in a composite return

forms submitted to the Internal Revenue Service:

as provided by KRS 141.206(16).

1. Form 1065, all pages.

For taxable years beginning on or after January 1, 2007, the

2. Form 1125-A—Cost of Goods Sold

Department of Revenue will permit the filing of a “composite

3. Form 4797—Sales of Business Property

return” as provided by KRS 141.206(16) on behalf of electing

nonresident individual partners, members or shareholders of

4. Schedule D—Capital Gains and Losses

a pass–through entity as defined in KRS 141.010(26). Income

5. Form 5884—Work Opportunity Credit

tax will be computed at the highest marginal rate provided in

6. Schedules for items on Form 1065, Schedule L, which state,

KRS 141.020 on the partner’s, member’s or shareholder’s pro

“attach schedule.”

rata share of the distributive share income from a pass–through

7. Form 4562—Depreciation and Amortization

entity doing business in, or deriving income from sources within

8. Form 8825—Rental Real Estate Income and Expenses of a

Kentucky. The partners’, members’ or shareholders’ distributive

Partnership or an S Corporation

share of income shall include all items of income or deduction

used to compute adjusted gross income on the Kentucky return

Electronic Funds Transfer (EFT)— The Department of Revenue is

that is passed through to the partner, member or shareholder

accepting electronically filed Corporation Income Tax/Limited

by the pass–through entity, including but not limited to interest,

Liability Entity Tax estimated tax voucher payments and

dividend, capital gains or losses, guaranteed payments and

extension payments for corporation income tax and limited

rents (KRS 141.206(16)).

liability entity tax. Before filing by EFT, the partnership must

have a valid six-digit Kentucky Corporation/LLET Account

The composite return of a pass–through entity shall be

Number and have registered with the Department of Revenue to

filed with the Department of Revenue on Form 740NP–WH,

file EFT. Using an incorrect account number, such as an account

Form 41a765(I) - 2013 Kentucky Partnership Income And Llet Return - 2013 Page 5

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