Fillable Form 502w - Virginia Pass-Through Entity Withholding Tax Payment printable pdf download

Pass-Through Entity Withholding Tax Payment

Beginning January 1, 2015, pass-through entities are required to submit returns and payments electronically.

Use this voucher only if you have been granted a waiver.

For details, visit the Department’s website at

General Information

Exempt Entities

Every pass-through entity (PTE) doing business in the

The PTE will not be required to pay the withholding tax if it:

Commonwealth that has taxable income derived from Virginia

• Is a Publicly Traded Partnership

sources and that must allocate any portion of that income to a

• Is a Disregarded Entity

nonresident owner is required to pay the withholding tax. The PTE

• Files a Unified Return on Behalf of All Nonresident Owners

is required to withhold 5% of the share of taxable income from

Virginia sources that is allocable to each nonresident owner. The

Undue Hardship

amount of withholding tax may be reduced by any tax credits that

If a PTE believes that the withholding requirement causes an

were earned by the PTE and allowable by the Code of Virginia

undue hardship, the PTE may apply to the Tax Commissioner

that pass through to nonresident owners.

requesting an exemption. In addition to any other information that

is pertinent to the PTE’s petition for relief, the letter shall provide

PTE Electronic Filing

information that will enable the Tax Commissioner to compare and

Beginning on January 1, 2015, PTEs must submit returns and

evaluate the cost to the PTE of complying with the withholding tax

payments electronically.

requirements, and the cost to the Commonwealth of collecting

How to Make Withholding Tax Payments Electronically

income tax from any nonresident owners that do not voluntarily

To make PTE withholding tax payments electronically, use the

file Virginia income tax returns and pay the tax.

eForms application on the Department’s website at

Exempt Owners

virginia.gov. Select the 502W from the eForms list and complete

The PTE must pay the withholding tax for all nonresident owners,

the form and payment information online. You can schedule your

with the following exceptions:

payment for a future date.

• Individuals who are exempt from paying federal income taxes

A PTE may also make its tax payments using an ACH Credit

based on their status or who are exempt from Virginia income

transaction through its bank. Some banks may charge a

taxes. The exemption must apply to the individual’s share of

fee for this service. See the Electronic Payment Guide at

the PTE’s income. Examples are diplomatic immunity and

virginia.gov for information on how to submit ACH

individuals who did not have any liability for Virginia income

Credit payments.

tax in the previous year and who do not expect to have any

When to File and Pay

liability in the current year.

The withholding tax payment is due on the due date of the PTE’s

• Entities other than individuals and corporations that are exempt

return regardless of whether the extension to file Form 502 is

from paying federal income taxes by reason of their purpose or

used. For calendar year filers, the withholding tax payment is

activities. The exemption from federal income tax must apply

due on April 15, 2016.

to the entity’s share of the PTE’s income. Examples of such

exempt entities are:

Purpose of Form

• Other PTEs. Generally, a PTE does not need to withhold for

Use Form 502W:

a nonresident owner that is also a PTE. These nonresident

• To make a withholding payment when a PTE has an approved

owner PTEs are responsible for filing their own Forms 502

waiver to file on paper rather than electronically

and must pay the withholding tax for their nonresident

• To make a withholding payment prior to filing form 502, usually

owners’ shares of income from Virginia sources. If a PTE

when the PTE is filing during the automatic 6-month extension

is notified by a nonresident owner PTE that the nonresident

• To make a withholding payment prior to the due date

owner PTE is not going to file a Form 502, then the PTE is

required to withhold on the nonresident owner PTE.

NOTE: Form 502V must be used when a PTE makes a payment

Caution: If a PTE withholds on a nonresident owner PTE,

with Form 502 return.

the nonresident owner PTE cannot claim credit for such

Detach at dotted line below. DO NOT SEND ENTIRE PAGE.

Form 502W

Pass-Through Entity Withholding Tax Payment

VIRGINIA DEPARTMENT OF TAXATION

(Doc ID 522)

Attention: Payment must be made electronically.

PO BOX 1500, RICHMOND, VA 23218-1500

Use this voucher only if you have an approved

For assistance, call (804) 367-8037.

waiver.

Check if initial filer

(This is the first year filing a PTE return.)

To receive credit for your payment in the

correct taxable year, please enter the

0000000000000000 5220000 000000

ending month (numerical) and year.

Month Ending Year Ending

FEIN

Entity Type

NAICS Code

Calendar year:

OR;

Fiscal year:

OR;

Name of Pass-Through Entity

Short taxable year:

Address (Number and Street)

Address Continued

City, State and ZIP Code

0 0

I declare that this return (including accompanying schedules and statements) has been examined

Amount of Payment

by me and to the best of my knowledge and belief is true, correct and complete.

Signature

Date

Phone Number

Form 502w - Virginia Pass-Through Entity Withholding Tax Payment

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