Instructions For Pa-65 Corp - Directory Of Corporate Partners

their nonfiling C corporations subject

not compliant with filing an RCT-101,

purposes and has already forwarded

PA Corporate Tax Report, the

to corporate net income tax for

a complete copy of its federal tax

Pennsylvania.

obligation to withhold corporate net

return to the Bureau of Corporation

Act 46 of 2003 added provisions

income tax falls back on the

Taxes with the RCT-101, PA

to the Tax Reform Code, § 403.2 that

partnership, as do any penalty and

Corporate Tax Report, do not send

require a partnership to withhold and

interest fees.

another copy.

remit corporate net income tax on

If the partnership has business

behalf of a nonfiling corporate

Note.

operations within and outside

The department does

partner. The corporate net income

Pennsylvania, the partnership must

not have an official affidavit

tax withholding requirement for

complete a PA-20S/PA-65 Schedule

form. It is the responsibility of the

nonfiling corporate partners applies

H to apportion business income (loss)

partnership to keep the affidavit it

to taxable years beginning after Dec.

for Pennsylvania personal income tax

receives from its corporate partner(s)

31, 2003.

purposes.

as part of the partnership’s records.

Corporate partners are not

The partnership must also submit

Do not submit the affidavit to the

exempt from filing the RCT-101, PA

a complete PA-20S/PA-65 Schedule

department.

Corporate Tax Report. If the

H-Corp and provide a copy to each

partnership does not have a signed

entity partner. The PA-20S/PA-65

What To File

affidavit from its corporate partner(s)

Schedule H-Corp provides the entity

then the partnership is responsible

partner with the apportionment

A partnership must complete a PA-65

for withholding corporate net income

information needed to complete the

Corp, Directory of Corporate

tax. The corporate net income tax

RCT-101, PA Corporate Tax Report.

Partners, if the partnership has

payment is posted to the corporate

The PA-20S/PA-65 Schedule H-Corp

income (loss) from operating a

partner’s account, and an estimate

is for information purposes only for

business, profession or farm within

may be imposed on the corporate

corporate partners. Do not use this

Pennsylvania and/or income (loss)

partner for not filing the RCT-101, PA

schedule to arrive at calculations for

from the ownership of property

Corporate Tax Report. See

Signed

other non-corporate partner’s/

within Pennsylvania.

Affidavit.

member’s income. PA-20S/PA-65

Submit a complete federal Form

Partnerships and entities formed

Schedule H-Corp must be completed

1065 including federal Form 1065

as limited liability companies

for distribution to partners that are

Schedules K-1 for the entity

classified as partnerships for federal

business entities. The PA-20S/PA-65

completing the PA-65 Corp, Directory

income tax purposes are required to

Schedule H-Corp must be provided to

of Corporate Partners, and a federal

ensure corporate net income tax is

the corporate partners if the

Form 1065 Schedule K-1 for each

withheld and paid on any income

partnership has business operations

corporate partner listed on the PA-65

passed through to nonfiling corporate

within and outside of Pennsylvania or

Corp, Directory of Corporate

partners that have not filed an RCT-

totally within Pennsylvania.

Partners.

101, PA Corporate Tax Report.

The partnership is also required

to file PA-20S/PA-65 Schedule CP

Partnership with Nonfiling

with the PA-65 Corp, Directory of

Corporate Partner(s) and

Signed Affidavit

Corporate Partners, for each nonfiling

Non Corporate Partner(s)

corporate partner and provide a copy

Each corporate partner is required to

A partnership may have non

of PA-20S/PA-65 Schedule CP to

provide the partnership with a signed

corporate partners, as well as one or

each nonfiling corporate partner for

affidavit stating the corporate partner

more partner(s) that are domestic or

use in filing the RCT-101, PA

is compliant with filing its RCT-101,

foreign C corporations. Such a

Corporate Tax Report. A corporate

PA Corporate Tax Report. The

partnership submits a complete PA-

partner is not required to file PA-

affidavit must include the corporate

20S/PA-65 Information Return. A

20S/PA-65 Schedule CP with the

partner’s Revenue ID.

complete PA-65 Corp, Directory of

RCT-101, PA Corporate Tax Report.

Corporate Partners, is required if the

If additional space is required,

Caution.

Do not enter the tax

partnership is remitting corporate net

copy the PA-65 Corp, Directory of

number assigned by the

income withholding tax on behalf of

Corporate Partners. When completing

Department of State.

nonfiling corporate partners and is

more than one PA-65 Corp, Directory

filed separately from the PA-20S/PA-

of Corporate Partners, each PA-65

If the partnership has not

65 Information Return.

Corp form must include the total of

received an affidavit, the partnership

If the partnership has corporate

all the PA-65 Corp, Directory of

must file the PA-65 Corp, Directory of

net income tax withholding for any

Corporate Partners forms.

Corporate Partners, along with PA-

domestic or foreign nonfiling

20S/PA-65 Schedule H-Corp, PA-

Example.

corporate partner, the partnership

The partnership reports

20S/PA-65 Schedule CP and federal

files a complete PA-65 Corp,

corporate net income withholding for

schedules. The partnership must pay

Directory of Corporate Partners, and

six corporate partners on two PA-65

corporate net income tax for the total

a copy of the partnership’s federal

Corp forms. The entity will enter “6”

federal positive income multiplied by

Form 1065, including all federal

in the field for Line 2 on both PA-65

Pennsylvania apportionment

schedules and federal Form 1065

Corp forms. The same rule is

percentage from PA-20S/PA-65

Schedules K-1 in addition to the PA-

followed for Lines 3, 4 and 5.

Schedule H-Corp multiplied by the

20S/PA-65 Information Return.

corporate tax rate of 9.99 percent.

If the entity is formed as a limited

If the partnership has a signed

liability company classified as a

affidavit and the department

partnership for federal income tax

determines the corporate partner is

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Instructions for PA-65 Corp

Instructions For Pa-65 Corp - Directory Of Corporate Partners - 2012 Page 2

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