Form Kw-7 - Kansas Nonresident Owner Withholding Return printable pdf download

Nonresident Owner Withholding

KW-7 and KW-7S

(Rev. 8/11)

GENERAL INFORMATION

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 income from the pass-through entity, you

the pass-through entity. A copy of the affidavit must be submitted

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.

Form Kw-7 - Kansas Nonresident Owner Withholding Return

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