Instructions For Form Pa-65 Corp - Directory Of Corporate Partners

Act 46 of 2003 added provisions

Note.

If the partnership has business

The department does

to the Tax Reform Code, § 403.2 that

operations within and outside

not have an official affidavit

require a partnership to withhold and

Pennsylvania, the partnership must

form. It is the responsibility of the

remit corporate net income tax on

complete a PA-20S/PA-65 Schedule

partnership to keep the affidavit it

behalf of a nonfiling corporate

H to apportion business income (loss)

receives from its corporate partner(s)

partner. The corporate net income

for Pennsylvania personal income tax

as part of the partnership’s records.

tax withholding requirement for

purposes.

Do not submit the affidavit to the

nonfiling corporate partners applies

The partnership must also submit

department.

to taxable years beginning after Dec.

a complete PA-20S/PA-65 Schedule

31, 2003.

H-Corp and provide a copy to each

What To File

Corporate partners are not

entity

partner.

The PA-20S/PA-65

A partnership must complete a PA-65

exempt from filing the RCT-101, PA

Schedule H-Corp provides the entity

Corp, Directory of Corporate

Corporate Tax Report. If the

partner with the apportionment

Partners, if the partnership has

partnership does not have a signed

information needed to complete the

income (loss) from operating a

affidavit from its corporate partner(s)

RCT-101, PA Corporate Tax Report.

business, profession or farm within

then the partnership is responsible

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

Pennsylvania and/or income (loss)

for withholding corporate net income

is for information purposes only for

from the ownership of property

tax. The corporate net income tax

corporate partners. Do not use this

within Pennsylvania.

payment is posted to the corporate

schedule to arrive at calculations for

Submit a complete federal Form

partner’s account, and an estimate

other non-corporate partner’s/

1065 including federal Schedules K-1

may be imposed on the corporate

member’s income. PA-20S/PA-65

for the entity completing the PA-65

partner for not filing the RCT-101, PA

Schedule H-Corp must be completed

Corp, Directory of Corporate

Corporate Tax Report. See

Signed

for distribution to partners that are

Partners, and the federal Schedule K-

Affidavit.

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

1 for each corporate partner listed on

Partnerships and entities formed

Schedule H-Corp must be provided to

the PA-65 Corp, Directory of

as limited liability companies that are

the corporate partners if the

Corporate Partners.

classified as partnerships for federal

partnership has business operations

income tax purposes are required to

within and outside of Pennsylvania or

Partnership with

ensure corporate net income tax is

totally within Pennsylvania.

withheld and paid on any income

The partnership is also required

Nonfiling Corporate

passed through to nonfiling corporate

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

Partner(s) and Non

partners that have not filed an RCT-

with the PA-65 Corp, Directory of

101, PA Corporate Tax Report.

Corporate Partners, for each nonfiling

Corporate Partner(s)

corporate partner and provide a copy

A partnership may have non

Signed Affidavit

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

corporate partners, as well as one or

each nonfiling corporate partner for

Each corporate partner is required to

more partner(s) that are domestic or

use in filing the RCT-101, PA

provide the partnership with a signed

foreign C corporations. Such a

Corporate Tax Report. A corporate

affidavit stating the corporate partner

partnership submits a complete PA-

partner is not required to file PA-

is compliant with filing its RCT-101,

20S/PA-65 Information Return. A

20S/PA-65 Schedule CP with the

PA Corporate Tax Report. The

complete PA-65 Corp, Directory of

RCT-101, PA Corporate Tax Report.

affidavit must include the PA Account

Corporate Partners, is required if the

If additional space is required,

Number (Box Number). The PA

partnership is remitting corporate net

copy the PA-65 Corp, Directory of

Account Number is assigned by the

income withholding tax on behalf of

Corporate Partners. When completing

Department of Revenue’s Bureau of

nonfiling corporate partners and is

more than one PA-65 Corp, Directory

Corporation Tax.

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-

corporate partner, the partnership

Example.

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

Partnership Wholly

If the partnership has a signed

liability company that is classified as

affidavit and the department

Owned by C

a partnership for federal income tax

determines the corporate partner is

purposes and has already forwarded

Corporations

not compliant with filing an RCT-101,

a complete copy of its federal tax

PA Corporate Tax Report, the

All of the partnership’s owners

return to the Bureau of Corporation

obligation to withhold corporate net

(partners) are C corporations or

Taxes with the RCT-101, PA

income tax falls back on the

entities formed as limited liability

Corporate Tax Report, do not send

partnership, as do any penalty and

companies that are classified as

another copy.

interest fees.

disregarded entities owned by C

corporations.

- 2 -

Instructions for PA-65 Corp

Instructions For Form Pa-65 Corp - Directory Of Corporate Partners - 2011 Page 2

Related Articles

Related forms

Related Categories