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Pass-Through Entities – Update to Existing Guidelines

On September 21, 2007, the Department of Taxation published guidelines regarding the treatment of pass-through entities subject to the withholding tax on nonresident owners (Public Document 07-150, also available on the Town Hall). These guidelines state that the guidelines may be updated in the future as necessary.

Since the publication of the Pass-Through Entity Withholding Guidelines, a number of additional issues have arisen regarding the treatment of pass-through entities that are subject to the withholding tax on nonresident owners.  As a result, the Department will be updating these guidelines and will consider requests to:

  • Relax the requirements for filing a unified return;
  • Increase the types of pass-through entities that are exempt from withholding;
  • Increase the types nonresident owners that pass-through entities are not required to withhold for;
  • Define investment pass-through entities;
  • Establish that an upper-tier entity cannot withhold for a lower-tier entity;
  • Set forth how pass-through entities are to allocate and apportion income;
  • Update the penalties section to reflect changes to the late payment and late filing penalties;
  • Any additional issues raised by public comments.

This website contains documents and links to websites that are relevant to the drafting of these updated guidelines.

Guidelines Currently Under Development

Workplan - Updated Guidelines (PDF 12 KB)

Draft Guidelines (PDF 70 KB)

Last Updated 12/18/2014 14:14


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