Instructions For Form Pa-40 Nrc - Nonresident Consolidated Income Tax Return

2013

Pennsylvania Department of Revenue

Instructions for PA-40 NRC

Nonresident Consolidated Income Tax Return

year. An estate or a trust may not

on behalf of its qualifying electing non-

GENERAL INFORMATION

resident individual owners (partner,

be included in the filing of the PA-

member, or shareholder). Please refer-

40 NRC, Nonresident Consolidated

PURPOSE OF FORM

ence Maintaining Records – Signed

Income Tax Return regardless of

The PA-40 NRC, Nonresident Consoli-

Statements for further details.

how the trust is taxed. PA law 72

dated Income Tax Return, is a nonresi-

P.S. § 7301 (I) defines individual as

dent consolidated tax return used to

There must be more than one nonres-

“a natural person and shall include

report the income (losses), deductions,

ident owner included on the PA-40

the members of a partnership or

credits, etc. on behalf of qualifying elect-

NRC, Nonresident Consolidated In-

association and the shareholders of

ing nonresident individual owners of for-

come Tax Return, to make an election

a Pennsylvania S corporation.”

eign or domestic PA S corporations,

to file this tax return and those owners

partnerships or entities formed as lim-

must meet the filing requirements.

● The owner and the owner’s spouse

ited liability companies classified as part-

See

What To

File.

must each be a domiciliary of a

nerships or PA S corporations (further

state or country other than Penn-

NOTE: Include only the individual

references are entitled as entity or enti-

sylvania during the calendar year.

nonresident owners that elect to

ties) for federal income tax purposes.

be included on the PA-40 NRC, Nonres-

● The owner and the owner’s spouse

CAUTION: The PA-40 NRC, Non-

ident Consolidated Income Tax Return.

must not maintain a permanent

resident Consolidated Income

FILING THE PA-20S/PA-65

place of abode in Pennsylvania dur-

Tax Return must be filed in paper form.

INFORMATION RETURN

ing calendar year.

It cannot be filed electronically.

The filing requirements for the PA-

● The owner must have no other

WHO CANNOT BE INCLUDED

20S/PA-65 do not change if the entity

Pennsylvania-taxable income de-

IN A PA-40 NRC, NONRESIDENT

files a PA-40 NRC, Nonresident Consol-

rived from, or connected with

CONSOLIDATED INCOME

idated Income Tax Return.

Pennsylvania sources other than

TAX RETURN

If an entity filed a PA-40 NRC, Nonres-

his or her distributive share of in-

The entity may not include a nonresi-

ident Consolidated Income Tax Return,

come (loss) for the calendar year.

dent owner (partner, member or share-

on behalf of its qualifying electing non-

For example: The owner may not

holder) on the PA-40 NRC, Consolidated

resident individual owners, the entity is

have more than one Pennsylvania-

Income Tax Return if the owner has not

still required to file the PA-20S/PA-65

source of income.

elected to join in the filing of the PA-40

Information Return and issue PA-

NRC, Nonresident Consolidated Income

● The owner must elect to join in the

20S/PA-65 Schedules RK-1 and NRK-1

Tax Return. See Maintaining Records

filing of the PA-40 NRC, Nonresident

to it owners. Please refer to the instruc-

Signed Statements

Consolidated Income Tax Return.

tions for the PA-20S/PA-65 Information

The entity may not include an owner

Return.

WHAT TO FILE

(partner, member or shareholder) on the

IMPORTANT:

entity

The election to be included in a PA-40

PA-40 NRC, Consolidated Income Tax

formed as a S-Corporation or lim-

NRC, Nonresident Consolidated Income

Return if the owner is a partner, member

ited liability company classified as a

Tax Return should be reviewed annually

or shareholder in more than one entity

partnership or PA S corporation for fed-

to assure the taxpayer meets the qual-

with Pennsylvania-source income.

eral income tax purposes filed a PA-40

ifications required for the election, and

An estate or a trust may not be in-

NRC, Nonresident Consolidated Income

the entity's records clearly show all the

cluded in the filing of the PA-40 NRC,

Tax Return on behalf of its qualifying

information required for the current tax

Nonresident Consolidated Income Tax

electing nonresident individual owners,

year, as listed below. See

Maintaining

Return regardless of how the trust is

the limited liability company is still re-

Records – Signed

Statements.

taxed.

quired to file the RCT-101, PA Corporate

The entity must complete PA-40 Sched-

Tax Report, and report capital stock/for-

Another entity such as a partnership, S

eign franchise tax.

ule NRC-I, Directory of Nonresident

corporation or limited liability company

Owners – Individuals. List every nonres-

may not be included in the filing of the

QUALIFYING TO FILE THE

ident individual partner, member, or

PA-40 NRC

PA-40 NRC, Nonresident Consolidated

shareholder (owner) that received a PA-

Income Tax Return.

The nonresidents of Pennsylvania must

20S/PA-65 Schedule NRK-1 from a PA S

meet these requirements:

WHO MAY FILE

corporation, partnership or limited liabil-

ity filing as an S corporation or partner-

An entity may file a PA-40 NRC, Nonres-

● The owner must be an individual

whose tax year is the calendar

ship for federal income tax purposes.

ident Consolidated Income Tax Return

Instructions For Form Pa-40 Nrc - Nonresident Consolidated Income Tax Return - 2013

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