Form Pte-Nroa - Idaho Nonresident Owner Agreement

Form Pte-Nroa - Idaho Nonresident Owner Agreement - 2015 Page 2

EFO00263-2

07-10-15

INSTRUCTIONS FOR IDAHO FORM PTE-NROA

A pass-through entity (entity) transacting business in Idaho, including a trust or estate with

income taxable in Idaho, must file a composite return or withhold amounts from the pass-

through income of the individual nonresidents.

Form PTE-NROA (Idaho Nonresident Owner Agreement) is used by a nonresident owner

in order to be exempt from the required withholding. This agreement establishes that

the taxpayer is required to file an Idaho income tax return, will report the Idaho source

income and pay any Idaho tax due, and will be subject to Idaho State Tax Commission

enforcement and collection procedures.

The form should be completed and signed by each nonresident owner and returned to

the entity. The entity must approve the agreement for it to be valid. The entity's approval

will signify its acknowledgment that it's liable for any tax due at the corporate rate if the

individual fails to file a return as agreed. If the entity doesn't approve the agreement, the

entity must withhold or include the individual's income in the composite return.

The agreement must be submitted to the entity each year and the entity must retain the

form for three years following the end of the tax year to which it applies. The entity doesn't

send Form PTE-NROA to the Tax Commission.

The agreement doesn't need to be completed by owners who will be included in the

composite return of the entity or Idaho residents who will file an Idaho return.

Form Pte-Nroa - Idaho Nonresident Owner Agreement - 2015 Page 2