How come a nonresident cannot participate in the filing of a PA-40 NRC in the instance where he/she holds interest in a pass-through entity in a single member LLC classified as a disregarded entity for federal income tax purposes or a revocable trust?

Nov 15, 2019
Only qualifying electing nonresident individual owners may be included in the filing of the PA-40NRC.  An individual is defined as a natural person and shall include the members of a partnership or association and the shareholders of a Pennsylvania S corporation [72 P.S. §7301(l)]. Trusts regardless of how they are taxed and limited liability companies regardless of the number of members do not meet this definition, and therefore, cannot be included in the filing of the PA-40 NRC. The department has the authority to request documentation to support the income allocation.
 
Pennsylvania CPA Journal

Read the latest from the Pennsylvania CPA Journal online or via the mobile app and digital edition.

Read More

CPA Now

Get the latest info on professional trends, management, and leadership skills on CPA Now.

Read More

Premier Sponsors

Platinum Sponsors

Gallagher Bollinger Logo
CPACharge


Silver Sponsors

Paychex logo
Capstan Logo
epsa USA


Bronze Sponsors

sage-logo_bright_green_rgb_2018_28469
paymerang_sm_rgb_grd_pos
TaxConnex_logo_TM_tagline2019
botkeeper1
Fox School of Business, Temple University


Interested in becoming a sponsor? View packages >