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2012

Pennsylvania Department of Revenue

Instructions for PA-20S/PA-65 Schedule NRK-1

Nonresident Schedule of Shareholder/Partner/Beneficiary

Pass Through Income, Loss and Credits

What’s New

The PA-20S/PA-65 Schedule

PA Schedule NRK-1

NRK-1 provides each partner/

PA Account # was changed to

for C Corporation

member/shareholder (owner) and

Revenue ID.

entity owner their share of income,

Partners

For the 2012 tax year, a

losses and credits from the

corporation’s Revenue ID is its

partnership, PA S corporation, estate,

seven-digit PA Tax Account ID OR a

Paper Returns and

trust, and/ or entity formed as a

new, unique, 10-digit number

Electronic Filed Returns

limited liability company classified as

assigned by the department to a

The PA-20S/PA-65 Schedule NRK-1

a partnership or S corporation for

taxpayer, separate from any

submitted with the PA-20S/PA-65

federal income tax purposes.

federally issued identification

Information Return does not need to

number(s) or Pennsylvania license

be issued to C corporation taxpayers

Who Should Get a

number(s).

unless a credit from the PA-20S/PA-

As the department transitions to

PA Schedule NRK-1

65 Schedule OC has been allocated.

an integrated tax system, a 10-digit

Partnerships, PA S corporations,

A PA-20S/PA-65 Schedule NRK-1

Revenue ID number will be assigned

estates, trusts and/or limited liability

must be completed for every

and communicated to each taxpayer.

companies must submit PA-20S/PA-

nonresident owner with

A corporation’s seven-digit PA Tax

65 Schedule NRK-1 with the

Pennsylvania-source income that is in

Account ID will continue to be

applicable Pennsylvania tax returns.

a partnership, S corporation, estate,

accepted by the department on tax

If a C corporation taxpayer

trust, and/ or entity formed as a

forms and schedules, but upon

receives a PA-20S/PA-65 Schedule

limited liability company classified as

assignment of a 10-digit Revenue ID

NRK-1, the amount from Line 7,

a partnership or S corporation for

to a taxpayer, the department will

Total Other Credits, must be reported

federal income tax purposes.

begin using the 10-digit Revenue ID

on the appropriate Pennsylvania tax

A copy of the PA-20S/PA-65

on outbound correspondence in lieu

return.

Schedules NRK-1 for each

of referencing the Tax Account ID.

partner/member/shareholder

Note.

(owner) must accompany the entity’s

The entity can issue

General Information

PA-20S/PA-65 Information Return.

either a PA-20S/PA-65

Owners must receive a copy or

Schedule RK-1 or PA-20S/PA-65

copies to prepare Pennsylvania tax or

Schedule NRK-1 for the C

Purpose of Schedule

information returns. The PA S

corporation. For most practitioners,

Partnerships and S corporations use

corporation or partnership must also

the determining factor in whether a

PA Schedule NRK-1 to report income

retain a copy of all PA-20S/PA-65

PA-20S/PA-65 Schedule RK-1 or PA-

and losses by class of income to each

Schedules NRK-1 as part of the

20S/PA-65 Schedule NRK-1 would be

of its nonresident owners. A PA

entity’s records.

issued is dependent upon the

Schedule NRK-1 is prepared for each

In addition, a PA-20S/PA-65

commercial domicile of the C

individual partner or shareholder

Schedule NRK-1 must be completed

corporation. However, the caveat is

showing the share of income (losses)

for all nonresident owners that are

that a PA-20S/PA-65 Schedule RK-1

by class and other items required to

estates, trusts, other PA S

must be issued to a corporate owner if

be reported.

corporations, other partnerships. The

a credit from Schedule OC has been

Pennsylvania partners/

Pennsylvania-taxable income passes

allocated from the entity.

members/shareholders (owners) who

through to the final taxpayer.

are individuals are subject to

Therefore, the immediate partners

Important.

The information

Pennsylvania personal income tax on

and shareholders must know the

on the PA-20S/PA-65

their shares of the entity’s

total Pennsylvania-taxable income in

Schedule NRK-1 has no relevance to

Pennsylvania-source income,

the event the final owner is a

C corporations. The only information

whether or not the income is actually

Pennsylvania resident. In the event

relevant to a corporate taxpayer is

distributed.

that the final owner is a nonresident

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

Owners who are individuals who

of Pennsylvania, the owner must

except if a credit from PA-20S/PA-65

do not reside in Pennsylvania are

know Pennsylvania-source taxable

Schedule OC has been allocated on

taxed on their shares of

income.

the PA Schedule NRK-1, Line

Pennsylvania-source income.

7. Otherwise, the only information

Note.

Entity owners receive

relevant to a corporate taxpayer is

both the PA-20S/PA-65

the PA-20S/PA-65 Schedule H-Corp.

Schedule RK-1 and NRK-1.

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Instructions For Form Pa-20s/pa-65 - Schedule Nrk-1 - Nonresident Schedule Of Shareholder/partner/beneficiary Pass Through Income, Loss And Credits - 2012

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