2 Net Business Income (Loss) . . . . . . . . . . . . . . . . . .
2a
l
00
2e
l
00
2 Share of Business Income (Loss) from
Other Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2b
l
00
2f
l
00
2 Previously Disallowed PA Source CNI
Deductions - PA S Corporations only . . . . . . . . . 2c
l
00
2g
l
00
2 Calculate Adjusted/Apportioned Net Business
Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2d
l
00
2h
l
00
Part II. Apportioned/Allocated PA-Taxable
Business Income (Loss)
Part III. Allocated Other PA PIT Income (Loss)
3 Interest Income from PA Schedule A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3h
l
00
4 Dividend Income from PA Schedule B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4h
l
00
5 Net Gain (Loss) from PA Schedule D . . . . . . . . . . . . . 5a
l
00
5b
l
00
6 Rent/Royalty Net Income (Loss) from
PA Schedule M, Part B . . . . . . . . . . . . . . . . . . . . . . . . 6a
l
00
6b
l
00
7 Estates or Trusts Income from PA Schedule J . . . . . . . 7a
l
00
7b
l
00
8 Gambling and Lottery Winnings from PA Schedule T . . 8a
l
00
8b
l
00
9 Total Other PA PIT Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9b
l
00
Part I. Total Taxable Business Income (Loss) from Operations Everywhere
1a Taxable Business Income (Loss) from Operations Everywhere . . . . . . . . . . . . . . . . . . . . . . . . . 1a
l
00
1b Share of Business Income (Loss) from All Other Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b
l
00
1c Total Income (Loss). Add Lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1c
l
00
1d Previously Disallowed CNI Deductions - PA S Corporations only . . . . . . . . . . . . . . . . . . . . . 1d
l
00
1e Total Adjusted Business Income (Loss). Subtract Line 1d from Line 1c . . . . . . . . . . . . . . . . . . . . . 1e
l
00
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
L
OSS
LOSS
LOSS
PLEASE PRINT. USE BLACK INK.
Filing Status:
PA-20S PA-65
P-S KOZ
USE BLACK INKSUBMIT ALL SUPPORTING SCHEDULES
FEIN
C
Business Name
First Line of Address - Street Address - If Address has Apartment Number, Suite, RR No. - Place on this Line.
Second Line of Address - PO Box
City or Post Office
State
ZIP Code
Revenue ID NAICS Code
Inactive
PA-20S/PA-65
PA S Corporation/Partnership
Information Return
PAGE 1 of 3
(
09-16) (FI)
2016
If a loss, fill in the oval next to the line
Page 1 of 3
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
PA SourceOutside PA
PA SourceOutside PA
(MMDDYYYY)
Fill in the applicable ovals
Method of Accounting
Accrual
Cash
Other, Describe
Extension Requested
Initial Year
Fiscal Year
Short Year
Beginning Ending
_________ _________
Final Return
FEIN/Name/Address
Change
Amended Information
Return
Date activity began in PA
____________________________
EC
FC
OFFICIAL USE ONLY
1606010054
1606010054
START
9 DIGIT - NO DASH
MM/DD/YY
MM/DD/YYYY
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
PRINT
TOP OF PAGE
Reset Entire Form
Part IV. Total PA S Corporation or Partnership Income (Loss)
10 Total Income (Loss) per Books and Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
l
00
11 Total Reportable Income (Loss). Add Lines 1e and 9 or add Lines 2h and 9. . . . . . . . . . . . . . . . 11
l
00
12 Total Nontaxable/Nonreportable Income (Loss). Subtract Line 11 from Line 10. . . . . . . . . 12
l
00
Part V. Pass Through Credits - See the PA-20S/PA-65 instructions
13a Total Other Credits. Submit PA-20S/PA-65 Schedule OC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13a
l
00
13b Resident Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b
l
00
14a PA 2016 Quarterly Tax Withholding Payments/Extension Payment for Nonresident Owners . . . . . . 14a
l
00
14b Final Payment of Nonresident Withholding Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14b
l
00
14c Total PA Income Tax Withheld. Add Lines 14a and 14b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14c
l
00
Part VI. Distributions - See the PA-20S/PA-65 instructions – Partnerships Only
15 Distributions of Cash, Marketable Securities, and Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
l
00
16 Guaranteed Payments for Capital or Other Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
l
00
17 All Other Guaranteed Payments for Services Rendered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
l
00
18 Guaranteed Payments to Retired Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
l
00
Distributions - See the PA-20S/PA-65 instructions – PA S Corporations Only
19 Distributions from PA Accumulated Adjustments Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
l
00
20 Distributions of Cash, Marketable Securities, and Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
l
00
LOSS
LOSS
LOSS
FEIN
C
Business Name
Page 2 of 3
Part VII. Other Information – See the PA-20S/PA-65 instructions for each line
01 During the entity’s tax year, did the entity own any interest in another partnership or in any foreign entity that was
disregarded as an entity separate from its owner under federal regulations Sections 301.7701-2 and 301.7701-3?
If yes, submit statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
02 Does the entity have any tax-exempt partners/members/shareholders? If yes, submit statement . . . . . . . . . . . . . . . . . 2
03 Does the entity have any foreign partners/members/shareholders (outside the U.S.)? If yes, submit statement . . . . . 3
04 Was there a distribution of property or a transfer (e.g., by sale or death) of a partner/member interest during the
tax year? (Partnership only) If yes, submit statement
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
05 Has the federal government changed taxable income as originally reported for any prior period? If yes, indicate
period on supplemental statement, and submit final IRS determination paperwork . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
06 Does the entity have any foreign operations or ownership in a foreign bank account? If yes, submit statement . . . . . 6
07 Is this entity involved in a reportable transaction, listed transaction, or registered tax shelter within this return?
If yes, submit statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
08 Does the entity filing as a partnership have other partnerships as partners? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
09 Has the entity sold any tax credits? If yes, submit statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Has the entity changed its method of accounting for federal income tax purposes during this tax year? If yes,
submit federal Form 3115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Has the entity entered into any like-kind exchanges under IRC Section 1031? If yes, submit federal Form 8824 . . . 11
12 PA Apportionment as reported on PA-20S/PA-65 Schedule H-Corp . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Yes or No
PA-20S/PA-65
PAGE 2 of 3
(
09-16) (FI)
2016
1606110052
1606110052
1606110052
START
9 DIGIT - NO DASH
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
PRINT
NEXT PAGE
PREVIOUS PAGE
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1 Balance at the beginning of the taxable year . . . . .
If AAA is negative, fill in the oval
1
2 Total reportable income from Part IV, Line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Other additions. Submit an itemized statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Loss from Part IV, Line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Other reductions. Submit an itemized statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Sum of Lines 1 through 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Balance at taxable year-end. Subtract Line 7 from Line 6
. . . . . . . . . . . . . . . . . . . . . . . .
8
Part VIII. PA S Corporations Only - Accumulated Adjustments Account (AAA)
and Accumulated Earnings and Profits (AE&P)
Part IX. Ownership in Pass Through Entities
If the entity received income (loss) from an S corporation, partnership, estate or trust, limited liability company or any other pass through entity
including a qualified subchapter S subsidiary (QSSS), list below the FEIN, name and address for each entity. If additional space is needed,
submit a separate statement. If the income (loss) is from a QSSS, enter “yes” in the QSSS box.
FEIN
C
Business Name
PA-20S/PA-65
PAGE 3 of 3
(09-16) (FI)
2016
LOSS
LOSS
L
OSS
LOSS
L
OSS
a
b
c
d
e
f
QSSS NAME & ADDRESSFEIN
AAA AE&P
N/A
N/A
Part X. Signature and Verification
Under penalties of perjury, I declare I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
belief, it is true, correct and complete. Declaration of paid preparer is based on all information of which preparer has any knowledge.
Page 3 of 3
Print/Type name of general partner, principal officer or Signature of general partner, principal officer or Date Daytime phone no.
authorized individual authorized individual
Paid Preparers Use Only
Print/Type preparers name Preparers signature Date Check if
self-employed
Firm’s name (or yours if self-employed) Daytime phone no.
Firms’s address
Preparer’s PTIN Firm’s FEIN
E-File Opt Out
1606210050
1606210050
1606210050
START
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If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
If a loss, enter "0"
9 DIGIT - NO DASH
Please Sign Your Return after printing.
MM/DD/YY
Please Sign Your Return after printing.
9 DIGIT - NO DASH
9 DIGIT - NO DASH
PRINT FORM
Reset Entire Form
THIS PAGE DOES NOT PRINT
5www.revenue.pa.gov
Pennsylvania Department of Revenue 2016
Instructions for Form PA-20S/PA-65
PA S Corporation/Partnership Information Return
F
orm PA-20S/PA-65 (09-16)
Tax year changes for the PA-20S/PA-
65 Information Return, schedules and
forms include:
The Capital Stock/Foreign Franchise
Tax has expired for tax years beginning
after December 31, 2015. References
to the capital stock and foreign fran-
chise taxes have been removed from
all tax forms and instructions.
PA-20S/PA-65, Schedule H-Corp
Effective for tax years beginning after
12/31/15, the capital stock/foreign fran-
chise tax has expired. The PA-20S/
PA-65 Schedule H-Corp has been up-
dated to remove the property and pay-
roll factors.
PA-65 Corp, Directory of Corporate
Partners
A “Final Return” oval has been added
in the upper right legend where the de-
mographic fields are located for 100%
corporate owned entities filing a final
PA-65 Corp, Directory of Corporate
Partners return.
Schedule T
With the passing of Act 84, retroactive
to January 1, 2016, the Pennsylvania
personal income tax applies to cash
prizes from the Pennsylvania Lottery.
Previously only gambling and lottery
winnings from sources other than the
Pennsylvania Lottery were taxable.
Schedule OC
Coal Refuse Energy and
Reclamation Tax Credit:
This new tax credit is designed to in-
centivize eligible facilities that generate
electricity in the commonwealth to use
coal refuse for power generation, con-
trol acid gasses for emission control
and use ash produced by the facility to
reclaim mining-affected sites. Credits
may be awarded at a rate of $4 per
2,000 pounds of qualified refuse
capped at 22.2 percent of the available
budget allocation per fiscal year. The
allocation is $7.5 million for the 2016-
17 fiscal year and $10 million each fis-
cal year thereafter.
PA-20S/PA-65, Schedule M and
Schedule D
Effective September 11, 2016, Section
1033 of the Internal Revenue Code
shall be applicable to the personal in-
come tax. This federal provision allows
a taxpayer to acquire replacement
property and make an election to defer
recognition of gain following an invol-
untary conversion, for example when
the original property is destroyed by
fire or natural disaster.
Internet. Visit the department’s web-
site at www.revenue.pa.gov to:
Download forms, instructions
and publications;
Research tax questions by us-
ing the Online Customer Service
Center; or
Search publications online by topic
or keyword.
If you do not have Internet access, visit
your local public library or district office.
Email. Forms for tax year 2011
through the current year can be
found on the department’s website
at www.revenue.pa.gov. Requests
for forms prior to 2011 should be
sent to ra-forms@pa.gov.
Written Requests. Send written re-
quests for forms to:
PA DEPARTMENT OF REVENUE
TAX FORM SERVICE UNIT
1854 BROOKWOOD ST
HARRISBURG PA 17104-2244
By phone and in person. You can
order forms and publications by calling
the department’s automated, 24-hour,
toll-free forms ordering message serv-
ice at 1-800-362-2050.
You can also get most forms and pub-
lications at your nearest district office.
Please call ahead to verify a district of-
fice’s address and services or visit
www.revenue.pa.gov for more informa-
tion. Taxpayer assistance hours are
8:30 a.m. to 5:00 p.m.
Copies of Previously Filed Returns
To receive copies of previously filed tax
returns, complete and sign Form REV-
467, Authorization for Release of Tax
Records, and send it to:
PA DEPARTMENT OF REVENUE
BUREAU OF
ADMINISTRATIVE SERVICES
12TH FLOOR
STRAWBERRY SQUARE
HARRISBURG PA 17128-1200
You may also fax the request to
717-783-4355. If someone other than
the taxpayer is making the request,
Form REV-677, Power of Attorney and
Declaration of Representative, must be
submitted with the request for the
release of the tax records. If a taxpayer
is deceased, sufficient evidence to es-
tablish authority to act for the tax-
payer's estate must be provided to the
department.
Please allow four to six weeks for a
request to be processed.
By law (42 U.S.C. §405(c)(2)(C)(i); 61
Pa. Code §117.16), the department
has the authority to use the Social Se-
curity number (SSN) to administer the
Pennsylvania personal income tax and
other Commonwealth of Pennsylvania
tax laws.
The department uses the SSN to iden-
tify individual taxpayers and verify their
HOW TO GET FORMS
AND PUBLICATIONS
WHAT’S NEW
PRIVACY NOTIFICATION
PREVIOUS PAGE
6 www.revenue.pa.gov
incomes. The department also uses
the SSN to administer a number of tax-
o
ffset and child-support programs that
f
ederal and Pennsylvania laws require.
The commonwealth may also use the
SSN in exchange-of-tax information
agreements with governmental author-
i
ties. Except for official purposes,
Pennsylvania law prohibits the com-
monwealth from disclosing information
that individuals provide on income tax
returns, including the SSN(s).
PURPOSE OF FORM
The PA-20S/PA-65 form is an informa-
tion return and personal income tax fil-
ing requirement used to report the
income (losses), deductions, credits,
etc., from the operation of foreign or
domestic PA S corporations, partner-
ships or limited liability companies
classified as partnerships or S corpo-
rations for federal income tax purposes
(further referred to as “entity” or “enti-
ties”).
These entities do not pay tax on their
income but “pass through any profits
or losses to their owners (share-
holders, partners or members). When
preparing the PA-20S/PA-65 PA S
Corporation/Partnership Information
Return, it is best to start with the com-
pleted federal Form 1120S or federal
Form 1065 and then proceed to the
Pennsylvania schedules.
The information on the PA-20S/
PA-65 Information Return has no
relevance to C corporations except if a
credit from PA-20S/PA-65 Schedule
OC has been allocated on the PA
Schedule RK-1, Line 9 or NRK-1, Line
7. Otherwise, the only information rel-
evant to a corporate taxpayer is the
PA-20S/PA-65 Schedule H-Corp for
calculating CNI tax.
Act 52 of 2013 authorizes the assess-
ment of partnerships and PA S corpo-
rations at the entity level for
understating income by more than $1
million. While the provision does not
apply to publicly traded partnerships, it
does apply to partnerships with 11 or
more partners; partnerships with at
least one partner that is a corporation,
limited liability company, partnership, S
c
orporation or trust; PA S corporations
with 11 or more shareholders; or any
partnership or PA S corporation that
elects to be subject to the provision.
IMPORTANT: Pass-through en-
t
ities that fail to maintain accu-
rate lists of owner/beneficiary names,
addresses, and tax identification num-
bers now subject the general partner,
tax matters partner, corporate officer
and/or trustee of the partnership, S cor-
poration, trust or estate to responsible
party assessments holding them indi-
vidually liable for tax, penalty, and in-
terest owed by the entity.
Every domestic or foreign PA S corpo-
ration (72 P.S. §7330.1), partnership
(72 P.S. §7335(c)) or entity formed as
a limited liability company that is clas-
sified as a partnership or S corporation
for federal income tax purposes must
file the PA-20S/PA-65 Information Re-
turn if any of the following apply:
1. During the taxable year, the part-
nership, PA S corporation or its
qualified subchapter S subsidiary
earned, received or acquired any
gross taxable income (loss) alloca-
ble or apportionable to Pennsylva-
nia, regardless of the amount of its
income (loss) and whether or not
the income was distributed; or
2. During the taxable year, the PA S
corporation had at least one share-
holder that was a Pennsylvania
resident individual or part-year res-
ident estate, trust or disregarded
entity owned by a resident individ-
ual or part-year resident; or
3. The partnership, at year-end, had
at least one partner that was a
Pennsylvania resident individual,
estate, trust or disregarded entity
owned by a resident individual.
A $250 penalty is imposed for failure
to file the PA-20S/PA-65. In addition, a
$250 penalty is imposed for each
missing RK-1, NRK-1 and Schedule
H-Corp.
IMPORTANT: All income for an
S corporation must be propor-
tionally distributed and cannot be
specifically allocated.
Inactive S Corporations and
Partnerships
If the PA S corporation or partnership
was inactive during the entire tax re-
p
orting period, the entity must still
submit the PA-20S/PA-65 Information
Return and fill in the Inactive oval.
S
chedules and supporting documenta-
tion do not need to be included with the
PA-20S/PA-65 Information Return.
In many instances, Pennsylvania per-
sonal income tax law and regulations
differ from federal tax laws. This is
especially true with regard to federal
elections concerning the timing of in-
come and expense items.
Taxpayers should not use federal elec-
tions to determine Pennsylvania per-
sonal income tax income (loss).
PA S corporations, partnerships and
limited liability companies classified as
partnerships or S corporations for
federal income tax purposes report
income (loss) using the Pennsylvania
personal income tax rules. Pennsylva-
nia does not adopt federal rules for
purposes of personal income taxation.
Accordingly, the determination of re-
portable amounts in each personal
income tax classification may vary sig-
nificantly from the classifications and
amounts as determined for federal in-
come tax purposes.
For Pennsylvania personal income tax
purposes, read the rules for classifying
income found in the Pennsylvania Per-
sonal Income Tax Guide. The income
must be reported on the owner’s tax
return in the same classification of in-
come as it is reported to them on their
PA Schedules RK-1 and/or NRK-1
from the entity.
The entity must maintain sufficient
books and records to properly report
income (losses), expenses, credits,
deductions, and other amounts for
Pennsylvania personal income tax
purposes. A PA S corporation or part-
nership that only operates a busi-
ness, profession or farm must include
all activities and transactions to deter-
mine Part I or Part II of the PA-
20S/PA-65 Information Return,
whichever is applicable, regardless of
WHO MUST FILE
GENERAL INFORMATION
CLASSIFYING INCOME
PREVIOUS PAGE
7www.revenue.pa.gov
the name of the transaction and re-
gardless of how it reports for federal
i
ncome tax purposes. Use PA-
20S/PA-65 Schedule M to classify
federal income (loss) for Pennsylva-
nia personal income tax
purposes. Please review the PA-20S/
PA-65 Schedule M instructions on the
department’s website at
www.revenue.pa.gov.
NOTE: Pennsylvania personal
income tax law taxes resident
partners, shareholders and members
(owners) on income from sources
within and outside Pennsylvania and
taxes nonresident owners on Pennsyl-
vania-source income only.
Starting with tax years beginning on or
after Jan. 1, 2006, all corporations, in-
cluding those incorporated in a state
other than Pennsylvania, with a valid
federal subchapter S election are con-
sidered Pennsylvania S corporations
and are no longer required to file the
Pennsylvania S Corporation Election
and Shareholders’ Consent form (REV-
1640) in order to be a Pennsylvania S
corporation. Under Act 67 of 2006, all
federal subchapter S corporations are
Pennsylvania S corporations. Act 67
also includes a provision for federal
subchapter S corporations to make an
election to not be taxed as a Pennsyl-
vania S corporation. To make this elec-
tion, the taxpayer is required to file a
completed REV-976, Election Not to be
Taxed as a Pennsylvania S Corpora-
tion on or before the due date, or ex-
tended due date, of the report for the
first period in which the election is to be
in effect.
NOTE: 72 P.S.§7301(n.1) stipu-
lates all federal S corporations
filling in Pennsylvania are automati-
cally PA S corporations.
An election to not be taxed as a PA S
corporation may not be revoked for five
years from the date it went into effect.
A revocation received within this five
y
ear period will be effective for the first
tax period for which the taxpayer is el-
igible to revoke the election.
E
lections which first went in effect in
2011 may be revoked for 2016. To
revoke the election the corporation must
send a letter signed by shareholders
holding more than one-half of the
shares of stock of the corporation on the
day on which the revocation is made.
This letter must contain the name of the
corporation, the federal employer iden-
tification number (FEIN), the PA S cor-
poration’s 10-digit Revenue ID or
seven-digit PA Account ID and the effec-
tive date of the revocation. If no effective
date is provided the revocation will be
effective for the first tax period for which
the revocation was timely submitted. In
the case of a corporation with qualified
subchapter S subsidiaries, the letter
must include the name and 10-digit
Revenue IDs, if applicable, of all quali-
fied subchapter S subsidiaries doing
business in Pennsylvania.
Mail the letter to:
PA DEPARTMENT OF REVENUE
BUREAU OF
CORPORATION TAXES
PROCESSING DIVISION
PO BOX 280705
HARRISBURG PA 17128-0705
The due date for filing the Election Not
to be Taxed as a Pennsylvania S Cor-
poration, REV-976, is the due date or
the extended due date of the PA corpo-
rate net income tax report for the first
year for which the election is to be in
effect. A revocation submitted after the
due date will be in effect for the next
tax period.
Fed/State Electronic Filing for
S Corporations and Partnerships
The department will accept original and
amended PA S Corporation/Partner-
ship Information Returns (PA-20S/PA-
65) including corresponding forms and
schedules filed through the Modern-
ized e-File (MeF) platform provided by
the IRS (also known as the Fed/State
e-File).
IMPORTANT: An amended PA-
20S/ PA-65 Information Return
f
iled through Fed/State e-File will only
b
e accepted for 2014 tax year returns
a
nd forward. You may not file an
amended PA-20S/PA-65 Information
Return through Fed/State e-File prior
to 2014 tax year return. See How To
Amend a PA-20S/PA-65 Information
Return prior to 2014 tax year return.
Fed/State e-File allows you to file fed-
eral and state returns together or sep-
arately. It is available through tax
preparers or computer software. When
you file using Fed/State e-file, the de-
partment sends an acknowledgement
directly to you, your tax professional or
Electronic Return Originator (ERO).
Whoever submits the tax return will re-
ceive the acknowledgement.
The PA-20S/PA-65 Information Return
can be filed through Fed/State e-File
through an approved vendor that has
tested with and been approved by the
department to offer electronic filing
in Pennsylvania. Even if a vendor is
federally approved they must also
be approved by Pennsylvania. As a
result, every year vendors must go
through a testing process for the
department's approval of their soft-
ware. When the vendors complete the
testing process, they will be listed
on Revenue’s e-Services Center at
www.doreservices.state.pa.us.
NOTE: Mandatory e-filing is re-
quired for third-party preparers
who prepare 11 or more PA-20S/PA-65
returns. The department published a
“Method of Filing” notice [43 Pa.B.
5772] for electronic filing requirements
in a Pennsylvania Bulletin on the PA
Department of Revenue website. Once
subject to this mandate, the preparer
must continue to e-file regardless of
how many returns are prepared during
a calendar year.
Tax filers may direct third party prepar-
ers to file returns in a different method
than mandated.
Electronically Filed Returns
with Attachments
When the PA-20S/PA-65 S Corpora-
tion/ Partnership Information Return is
filed through the Fed/State e-File, all
PENNSYLVANIA S
CORPORATION S STATUS
REVOCATIONS
ELECTRONIC FILING
PENNSYLVANIA S
CORPORATION S STATUS
(S ELECTIONS)
PREVIOUS PAGE
8 www.revenue.pa.gov
attachments other than the PA-
2
0S/PA-65 schedules must be sent in
PDF format.
Examples of other attachments to an
electronically filed PA-20S/PA-65 Infor-
mation Return may include statements
required with the PA-20S/PA-65 Infor-
mation Return; PA Schedules RK-1
and NRK-1 that a pass through entity
receives from another pass through
entity; federal Form 8824, Like-Kind
Exchanges; federal Form 3115, Appli-
cation for Change in Accounting
Method; and federal Form 7004, Appli-
cation for Automatic Extension of Time
To File.
The department will consider the tax
return incomplete if all required docu-
ments are not submitted with an elec-
tronically filed return.
IMPORTANT: Do not include the
PA-20S/PA-65 Schedules RK-1
and NRK-1 that the entity issues to its
owners as a PDF attachment. These
schedules are part of the e-File pack-
age for the PA-20S/PA-65 Information
Return.
Fed/State Electronic Filing Option
for Estimated Nonresident
Individual Quarterly
Withholding Payments
The department accepts through the
MeF Fed/State program the electronic
payment of the quarterly estimated
withholding tax for nonresident owners
filed with the PA-65ESR. The following
types of payments can be electroni-
cally transferred if filed through
Fed/State e-File program:
Final nonresident individual tax
withholding tax catch-up pay-
ment submitted with the 2016 tax
year PA-20S/PA-65 Information
Return; and
2017 (future) estimated payments
for nonresident individual quarterly
withholding tax submitted with the
2016 tax year PA-20S/PA-65 Infor-
mation Return; and
PA-65ESR Quarterly Estimated
Payments for nonresident individ-
uals.
Future estimated nonresident individ-
ual tax withholding payments for tax
y
ear 2017 will be stored in the system
as separate electronic transaction pay-
m
ents until the specified due date.
I
MPORTANT: The nonresident
i
ndividual quarterly withholding
payment may not be submitted through
Electronic Funds Transfer (EFT),
credit/debit cards or e-TIDES.
Payment Not Submitted with
Electronic Return
If the PA-20S/PA-65 Information
Return has been electronically submit-
ted and the nonresident withholding
was not sent at the time of electronic
submission of the return, then you
may send a paper check for the non-
resident withholding.
You may send in the PA-40 ESR
(F/C) with a check if the entity
electronically files the PA-20S/PA-65
Information Return. Submit a check or
money order made payable to the PA
Dept. of Revenue along with the PA-40
ESR (F/C). Print the entity's federal
employer identification number (FEIN)
and “2016 Final Nonresident Withhold-
ing” on the check or money order.
CAUTION: Failure to include the
PA-40 ESR (F/C) with your check
will result in a delay of processing.
Mail the payment to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280502
HARRISBURG PA 17128-0502
For payment by check with paper tax
return, See How To Pay.
Prior to 2014 Tax Year Return
If after filing the PA-20S/PA-65 Infor-
mation Return, the entity discovers that
an incorrect PA-20S/PA-65 tax return
has been submitted to the department
and/or has amended federal Form
1065 or 1120S or if the IRS changed or
corrected any items of income, gain or
loss previously reported, the entity
must submit an amended PA-20S/PA-
65 Information Return to the Pennsyl-
vania Department of Revenue.
Prior to the 2014 tax year return, an
amended PA S Corporation/Partner-
ship Information Return (PA-20S/PA-
65) cannot be filed through Fed/State
e-File Program.
When amending a PA-20S/PA-65
I
nformation Return that was originally
filed through Fed/State e-File, the
entity must:
Obtain the paper form PA-20S/PA-
65 Information Return for the year
the entity wants to amend. Do not
submit a photocopy of your
original PA-20S/PA-65 Informa-
tion Return;
Complete the amended return in-
cluding all schedules by entering
the corrected information and sub-
mit it with the amended PA-
20S/PA-65 Schedules RK-1 and/or
NRK-1;
Clearly mark the “Amended Infor-
mation Return” oval on PA-20S/
PA-65 Information Return and the
“Amended Schedule” oval on the
Schedules RK-1 and/or NRK-1;
Enter the amended amounts and
enclose a statement explaining the
reasons an amended return is
being filed. Submit only the forms
or schedules supporting the
amended amounts;
Provide a copy of the amended
PA-20S/PA-65 Schedules RK-1
and/or NRK-1 to the partners,
shareholders or members; and
Enclose a copy of the amended
federal Form 1120S or federal
Form 1065.
Tax Year Return 2014 and Forward
For tax years 2014 and forward, the de-
partment will accept amended PA-
20S/PA-65 Information Returns
including corresponding forms and
schedules filed through Fed/State e-File.
To file a 2014 or later amended
return through Fed/State E-File, visit
Revenue’s e-Services Center at
www.doreservices.state.pa.us.
Follow all the steps listed above under
“Prior to 2014 Tax Year Return with
exception to the first bullet referencing
a paper return.
HOW TO PAY ELECTRONICALLY
HOW TO AMEND THE
PA-20S/PA-65
INFORMATION RETURN
PREVIOUS PAGE
9www.revenue.pa.gov
O
ver-Reported Income
If the entity over reported income,
failed to claim allowable credits, failed
to report allowable deductions, or
e
vents transpired that decreased its re-
portable Pennsylvania-taxable income,
including an IRS Report of Change, the
entity must file an amended PA-
20S/PA-65 Information Return.
The amended return must be filed
within three years of the original due
date or extended due date of the PA-
20S/PA-65 Information Return. The
amended PA-20S/PA-65 Schedules
RK-1 and/or NRK-1 must show the cor-
rected Pennsylvania-taxable income,
so the shareholders or partners can re-
quest refunds of Pennsylvania income
tax they overpaid.
In order to obtain any refunds, owners
must also file an amended Pennsylva-
nia tax return within three years of the
original due date of their return. See
How To Amend a PA-20S/PA-65 Infor-
mation Return.
Under-Reported Income
If the entity under reported inc-
ome, erroneously claimed credits or
deductions to which it was not entitled,
or events transpired that increased re-
portable Pennsylvania-taxable income,
including an IRS Report of Change, the
entity must file an amended PA-
20S/PA-65 Information Return within
30 days from the determination of such
increase. The amended PA-20S/PA-65
Schedules RK-1 and/or NRK-1 must
show the corrected Pennsylvania-tax-
able income so the shareholders or
partners can pay the tax due.
The entity and owners must also file an
amended Pennsylvania tax return
within 30 days of the discovery of the
error to report any increase in income
for taxes due. See How To Amend a
PA-20S/PA-65 Information Return.
IMPORTANT: There is no statue
of limitations to file an amended
return when reporting additional in-
come. Amended returns cannot be
filed in response to a Department of
Revenue Assessment. In those cases,
an appeal must be filed with the Board
of Appeals.
PA S Corporations
a
nd Partnerships
Each entity submits with the PA-20S/
PA-65 Information Return a complete
copy of its federal income tax return
including all schedules, statements,
federal Schedules K-1, and PA-
20S/PA-65 Schedules RK-1 and NRK-
1 received from other pass through
entities.
With the PA-20S/PA-65 Information
Return, the entity must also submit
copies of the PA-20S/PA-65 Schedules
RK-1 that it provides to resident
partners/shareholders (owners) and
copies of the PA-20S/PA-65 Schedules
NRK-1 that it provides to nonresident
owners.
PA S Corporations and
Partnerships as Owners of Another
Pass Through Entity
If the shareholder, partner, member
(owner) of a PA S corporation, partner-
ship, limited liability company or a ben-
eficiary of a trust or estate is classified
as a pass through entity, the issuing
entity must provide the entity owner
with both PA-20S/PA-65 Schedules
RK-1 and NRK-1 showing the entity
owner’s share of the income (loss)
passed through from the issuing entity
in the same class in which the issuing
entity distributed the income to its en-
tity owner.
When the entity owner receives a PA-
20S/PA-65 Schedule RK-1 and NRK-
1, it has the classified income (loss)
amount to complete the PA-20S/PA-65
Information Return, Parts I, II and III.
The entity owner is required to file both
the PA-20S/PA-65 RK-1 and NRK-1
with their PA-20S/PA-65 Information
Return.
Example. When a PA S corporation re-
ceives income from a partnership, the
PA S corporation must file a copy of the
PA Schedule RK-1 and NRK-1 it re-
ceived from the partnership along with
the PA-20S/PA-65 Information Return.
Partnerships with C Corporation
Partners
P
artnerships or limited liability compa-
nies classified as partnerships for fed-
e
ral income tax purposes with
operations within Pennsylvania that
h
ave corporate partners that have not
filed the RCT-101, PA Corporate Tax
Report for the prior or current tax year
or whose partners are all C corpora-
tions must file the PA-65 Corp, Direc-
tory of Corporate Partners.
If the partners are all C corporations,
the partnership:
Must include a complete copy of
federal Form 1065 with the PA-65
Corp, Directory of Corporate Part-
ners; and
Does not file a PA-20S/PA-65 In-
formation Return.
For additional information, please re-
view the instructions for the PA-65
Corp, Directory of Corporate Partners
on the department’s website.
Limited Partnership Filing as
Disregarded Entity for Federal
Income Tax Purposes
If an eligible entity has two members
under local law but one of the
members of the eligible entity is, for
federal income tax purposes, disre-
garded as an entity separate from the
other member of the eligible entity,
then the eligible entity cannot be clas-
sified as a partnership. The eligible en-
tity is either disregarded as an entity
separate from its owner or an associa-
tion taxable as a corporation.
Example. A limited partnership (LP A)
is owned by a single-member limited li-
ability company (SMLLC) and a limited
partnership (LP B). The LP B owns 100
percent of the SMLLC which gives LP
B 100 percent control of LP A. The LP
B is required to file the PA-20S/PA-65
Information Return and report the in-
come of both LP A and the SMLLC.
PA S Corporations and
Partnerships Filing on Behalf
of their Qualified Electing
Nonresident Individual Owners
PA S corporations, partnerships and
limited liability companies classified as
partnerships and S corporations for
federal income tax purposes may file a
WHAT TO FILE
WHEN TO AMEND THE
PA-20S/PA-65
INFORMATION RETURN
PREVIOUS PAGE
10 www.revenue.pa.gov
composite return (PA-40 NRC, Nonres-
ident Consolidated Income Tax Return)
o
n behalf of their qualified nonresident
individual owners who elect to be in-
cluded in the composite filing.
F
or additional information, please re-
v
iew the instructions for the PA-40
NRC, Nonresident Consolidated In-
come Tax Return on the department’s
website.
Individual Owners in a PA S
Corporation, Partnership or
Limited Liability Company
Classified as a Partnership or S
Corporation for Federal Income
Tax Purposes
Individual owners of an entity must re-
port on the PA-40, Individual Income
Tax Return, their share of the income
(loss), passed through from the entity
in the same class in which the partner-
ship or PA S corporation reported the
income to its individual owners, as
shown on their PA Schedules RK-1
and/or NRK-1.
Classified as a C Corporation
A limited liability company that elects to
file as a C corporation for federal in-
come tax purposes files as a C corpo-
ration for Pennsylvania and is subject
to Pennsylvania corporate net income
tax, reported on the RCT-101, PA Cor-
porate Tax Report. A limited liability
company that files as a C corporation
with the IRS does not file the PA-
20S/PA-65 Information Return.
Classified as an S Corporation
A limited liability company that elects to
file as an S corporation for federal in-
come tax purposes and has not
elected out of PA Subchapter S status
for Pennsylvania by filing form REV-
976, Election Not To Be Taxed as A
Pennsylvania S Corporation, must file
as an S corporation for Pennsylvania
using the PA-20S/PA-65 Information
Return. The members are subject to
Pennsylvania personal income tax.
Classified as a Partnership
A limited liability company that elects
to file as a partnership for federal in-
come tax purposes files as a partner-
ship for Pennsylvania using the
PA-20S/PA-65 Information Return. The
members are subject to Pennsylvania
personal income tax.
1. Income Reported on Federal Tax
Return of an Individual
For personal income tax purposes, a
single-member limited liability com-
pany owned by an individual or a lim-
ited liability company jointly owned by
a taxpayer and spouse is a disre-
garded entity. The income of the limited
liability company is reported on PA-40
Schedule C, Profit or Loss from Busi-
ness or Profession, or PA-40 Schedule
E, Rent and Royalty Income (Loss), of
the member’s PA-40, Individual In-
come Tax Return, and the single-mem-
ber limited liability company does not
file a PA-20S/PA-65 Information Re-
turn.
2. Income Reported on Federal Tax
Return of another Business Entity
The income of a single-member limited
liability company owned by another en-
tity is reported on the tax return of the
member as if earned by the member.
Qualified Subchapter S Subsidiary
and its Parent S Corporation
Pennsylvania personal income tax law
does not treat a qualified subchapter S
subsidiary (QSSS) owned by a PA S
corporation (parent) as a separate cor-
poration for personal income tax.
Pennsylvania personal income tax law
treats all assets, liabilities and items of
income, deduction and credit of a
QSSS as assets, liabilities and items of
income, deduction and credit of the
parent PA S corporation for income tax
purposes.
The parent PA S corporation must re-
port the assets, liabilities and items of
income, deduction and credit of the
QSSS on the parent’s PA-20S/PA-65
Information Return.
NOTE: Shareholders receive the
income distribution from the par-
ent corporation, not from each QSSS.
The following provisions apply only to
a qualified subchapter S subsidiary in
Pennsylvania:
A QSSS cannot elect corporation
treatment independent of its parent
corporation.
If a QSSS and/or parent of a
QSSS does not desire to be taxed
as a PA S corporation, the parent
must file REV-976, Election Not to
be Taxed as a Pennsylvania S
Corporation, for itself and all
QSSS(s). The parent corporation
submits a schedule with the elec-
tion identifying the name, address,
the PA S corporation’s Revenue ID
and federal employer identification
number (FEIN) of each QSSS
owned by the corporation and
doing business in Pennsylvania.
The parent corporation is not re-
quired to register with the Depart-
ment of State if its only activity in
Pennsylvania is its investment in
the QSSS that is registered in
Pennsylvania.
The parent is required to file a
PA-20S/PA-65 Information Re-
turn and list the QSSS(s) on Part
IX and include all of the QSSS
items of income, deduction and
credit on the return. There is no
ownership percentage for the
QSSS because it is a division of
the parent company.
Since the QSSS is a division of the
parent company, the QSSS is not
included on the Partner/Member/
Shareholder Directory. Only the
owners of the parent company are
listed on the directory.
The parent PA S corporation
may also file the PA-40 Non-
resident Consolidated Income Tax
Return (NRC) for its nonresident
owners if they meet the parame-
ters. See the PA-40 NRC instruc-
tions on the department's website.
Assemble the PA-20S/PA-65 Informa-
tion Return, forms and schedules in the
following order:
Signed original PA-20S/PA-65 In-
formation Return (Pages 1 through
3). Do not mail a photocopy;
PA Schedule P-S KOZ attach be-
hind the information return;
CLASSIFIED AS A SINGLE-MEMBER
LIMITED LIABILITY COMPANY
ASSEMBLING THE PA-20S
PA-65 S CORPORATION/
PARTNERSHIP
INFORMATION RETURN
PREVIOUS PAGE
11www.revenue.pa.gov
PA-20S/PA-65 Partner/Member/
S
hareholder Directory;
PA-20S/PA-65 Schedule D-I, D-II,
D-III and D-IV;
PA-20S/PA-65 Schedule E;
PA-20A/PA-65 Schedules RK-1
that the entity provides to resident
o
wners;
PA-20S/PA-65 Schedules NRK-1
that the entity provides to nonresi-
dent owners;
PA-20S/PA-65 Schedule M;
PA-20S/PA-65 Schedule OC and
the required supporting documents
for claiming any of the business
credits allowed by Pennsylvania
law;
PA-20S/PA-65 Schedule A;
PA-20S/PA-65 Schedule B;
PA-20S/PA-65 Schedule H;
PA-20S/PA-65 Schedule H-Corp;
PA-20S/PA-65 Schedule NW;
PA-20S/PA-65 Schedule J;
PA-20S/PA-65 Schedule T;
PA-20S/PA-65 Schedule I;
All other required supporting
and supplemental documentation,
including a copy of the federal
extension.
NOTE: A complete copy of the
federal Form 1120S, U.S. In-
come Tax Return for an S Corporation,
or Form 1065, U.S. Return of Partner-
ship Income, including all schedules,
statements and federal Schedules K-1
now must be included with the entity’s
PA-20S/PA-65 PA S Corporation/ Part-
nership Information Return.
Assemble documents in the
order above.
Do not staple documents.
On all additional statements in-
cluded with the return, please in-
clude the entity’s name, FEIN, tax
year and brief line reference to PA-
20S/PA-65 Information Return or
PA-20S/PA-65 Schedules.
Do not include federal returns or
federal Schedules K-1 in CD for-
mat. The PA-20S/PA-65 Informa-
tion Return will be considered
incomplete if the federal informa-
tion is not included with the paper
r
eturn.
IMPORTANT: Do not create a
substitute PA-20S/PA-65 Infor-
mation Return that has not been
approved by the department. A
s
preadsheet is an unapproved and un-
acceptable tax form. Unapproved tax
f
orms filed with the department may be
rejected and returned to the taxpayer
or tax return preparer. This may result
in an assessment of interest and
penalty.
If filing any tax form other than an offi-
cial tax form, please review Miscella-
neous Tax Bulletin 2008-02 on the
department’s website.
Estimated Quarterly Tax Payments
for Resident Owners
Individual resident partners and
shareholders (owners) are subject to
the estimated quarterly tax provisions
under the Pennsylvania Income Tax
Act.
Resident owners must file declarations
and make quarterly estimated Pennsyl-
vania tax payments if they reasonably
expect income, other than compensa-
tion on which Pennsylvania tax is with-
held, to exceed $8,000.
The individual owners use REV-414I,
Individuals Worksheet, and REV-413I,
Instructions for Estimating PA Personal
Income Tax (For Individuals Only), to
determine the proper amount of esti-
mated tax payments.
Estimated Quarterly Withholding
Payments for Nonresident Owners
Under Act 22 of 1991, entities must
withhold and pay quarterly Pennsylva-
nia personal income tax for nonresi-
dent partners and shareholders
(owners) that are individuals, estates
or trusts.
This quarterly withholding tax payment
is based on each nonresident owner’s
expected share of distributable Penn-
sylvania-source taxable income.
When there has been a change in an
accounting period that requires filing of
a short-year return, the tax is calcu-
lated on an annualized basis. See
Short-Year Return.
The entity must indicate the amount of
Pennsylvania personal income tax it
withheld for each nonresident on the
PA-20S/PA-65 Schedule NRK-1 and
provide the PA-20S/PA-65 Schedule
NRK-1 to each nonresident owner.
The entity uses REV-414 P/S, Partner-
ships and PA S Corporations Withholding
Tax Worksheet, and REV-413 P/S,
Instructions for Withholding PA Personal
Income Tax from Nonresident Owners
by Partnerships and PA S Corporations,
to determine the proper amount
of withholding.
Partnerships or PA S corporations filing
a nonresident quarterly withholding tax
return for the first time should use PA-
40ESR (F/C), Declaration of Estimated
Tax or Estimated Withholding Tax for
Fiduciaries and Partnerships. There-
after, the department will provide
preprinted forms PA-40ES (P/S).
The partnership or PA S corporation
makes the initial quarterly tax withhold-
ing payment and all future quarterly tax
withholding payments under the federal
employer identification number, name
and address of the entity.
CAUTION: Do not use the
seven-digit PA Account ID num-
ber or the 10-digit Revenue ID number
for submitting non-resident withholding
payments.
IMPORTANT: An entity cannot
withhold Pennsylvania personal
income tax on another entity or a
Pennsylvania resident individual, and
should not withhold Pennsylvania per-
sonal income tax on income from in-
tangibles such as interest, dividends or
sale of stock.
If the entity did not make any or
sufficient estimated quarterly
withholding tax payments for its non-
resident owners, a final payment or
catch-up payment can be made with
the filing of the PA-20S/PA-65 Informa-
tion Return or PA-40 NRC, Nonresi-
dent Consolidated Income Tax Return.
Failure to remit withholding payments
for all nonresident owners on a quar-
terly basis will result in the imposition
of interest, penalty and underpayment
ESTIMATED QUARTERLY
TAX PAYMENTS
AND WITHHOLDING
PREVIOUS PAGE
12 www.revenue.pa.gov
penalty. See Final Payment of Nonres-
ident Withholding Tax for how and
where to send the final nonresident
withholding tax payment with the PA-
20S/PA-65 Information Return.
Please review the instructions on the
department’s website for the PA-40
NRC, Nonresident Consolidated In-
come Tax Return, for how and where
to send the final nonresident withhold-
ing tax payment with the PA-40 NRC,
Nonresident Consolidated Income Tax
Return.
Be sure to review the electronic option.
See Fed/State Electronic Filing Option
for Estimated Nonresident Individual
Withholding Payments.
Overpayment/Adjustment of
Withholding Tax for
Nonresident Owners
The PA-20S/PA-65 PA S Corporation/
Partnership Information Return is for
information purposes only.
It is not a return where you can indicate
a refund or carry-forward credit. Pay-
ments submitted to this account are for
nonresident tax withholding only and
are held for transfer to the partner,
member or shareholder (owner) as in-
dicated on their individual tax returns.
The department will not make the as-
sumption that the entity paid more than
was needed.
Under Act 22 of 1991, entities must
withhold quarterly Pennsylvania per-
sonal income tax from nonresident
partners and shareholders (owners)
that are individuals, estates or trusts.
This withholding tax is based on each
nonresident owner's expected share of
distributable Pennsylvania-source tax-
able income. The partnership, PA S
corporation or limited liability company
classified as a partnership or PA S cor-
poration is required to remit the with-
holding tax to the department on a
quarterly basis.
If the entity overpaid the nonresident
withholding tax, the entity should pass
through the total nonresident owners’
withholding tax payment (including the
overpayment) as PA Nonresident Tax
Withheld on Line 6 of their PA Sched-
ule NRK-1. The owners can then in-
clude the Line 6 amount as a tax
payment on their respective PA-40,
Pennsylvania Income Tax Return, on
Page 2, Line 17, Nonresident Tax With-
h
eld from your PA Schedule(s) NRK-1.
If the entity did not pass through the
overpayment of nonresident tax with-
h
olding to its nonresident owners on
P
A Schedule NRK-1, and if the entity
wants a refund or to carry forward to
the next tax year the entire amount of
tax withheld or the excess over the
withholding passed through to the non-
resident owners that are individuals,
estates or trusts (providing the entity
did not file a PA-40 Nonresident Con-
solidated Income Tax Return), the
entity must submit a written request to:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
NONRESIDENT WITHHOLDING
TAX REFUND
PO BOX 280600
HARRISBURG PA 17128-0600
The request must be on company let-
terhead and include the entity’s name,
federal employer identification number,
tax year, Social Security number(s) of
the owner(s), amount of nonresident
withholding paid, amount of nonresi-
dent withholding tax liability, the re-
quested refund amount and/or
carry-forward to the next tax year of
nonresident withholding and reason for
the request.
File the PA-20S/PA-65 Information Re-
turn for the current calendar year or the
fiscal year that begins in the current tax
year and ends in the next tax year. Use
the current tax year return for a tax
year of less than 12 months that begins
and ends in the current tax year.
To remain consistent with the federal
tax due date, the due date for filing
2016 Pennsylvania tax returns will be
on or before midnight, April 18, 2017.
The U.S. Postal Service postmark date
on the envelope is proof of timely filing.
If the return cannot be filed by the due
date, request an extension of time to
file.
For a calendar-year filer, file the current
tax year PA-20S/PA-65 Information
Return and PA-20S/PA-65 Schedules
RK-1 and NRK-1 on or before April 18,
2017, including an extension date of
Sept. 15, 2017.
For a fiscal-year filer, file the current tax
year PA-20S/PA-65 Information Return
and PA-20S/PA-65 Schedules RK-1 and
NRK-1 on or before the 15th day of the
fourth month following the close of the
fiscal year including an extension date
of five months after the original due date.
If the due date falls on a Saturday,
Sunday or business holiday, the entity
must file the PA-20S/PA-65 Information
Return no later than midnight on the
first business day following the Satur-
day, Sunday or business holiday. The
U.S. Postal Service postmark date on
the envelope is proof of timely filing.
If the entity cannot file by the original
due date, request an extension of time
to file. See Extension of Time To File.
If the entity does not file its return by
the original due date or extended due
date and does not pay the tax due by
the original due date, the department
imposes late filing and underpayment
penalties.
Tax Years
Pennsylvania follows the same tax
year as federal rules.
Calendar-Year Entity
An entity that files on a calendar year
basis reports all taxable income recog-
nized between Jan. 1 and Dec. 31.
See When To File.
Fiscal-Year Entity
A fiscal year is a period of 12 consecu-
tive months without regard to the
calendar year. The fiscal year is desig-
nated by the calendar year in which it
begins. A fiscal-year entity reports all
taxable income recognized during the
fiscal year. See When To File.
An entity may use a 52/53 week tax-
able year if it keeps its books on that
basis.
Changing From a Fiscal-Year Entity
to a Calendar-Year Entity
To change from a fiscal-year filer to a
calendar-year filer, the entity files a
short-year return. See Short-Year Re-
turn. The entity then files the next cal-
endar year on or before April 18, 2017,
including an extension date of Sept.
15, 2017.
WHEN TO FILE
PREVIOUS PAGE
13www.revenue.pa.gov
The entity is also required to submit a
copy of its federal election Form 1128,
Application to Adopt, Change or Retain
a Tax Year, with both the short-year re-
turn and the calendar-year return.
Short-Year Return
A short year is an accounting period
shorter than one year and not a 52/53
week taxable year.
A short-year return is required for the
following reasons:
Changes in the annual accounting
period. For example, the entity
changes from a fiscal-year filer to
a calendar-year filer; or
An entity is in existence during
only part of the tax year. For exam-
ple, if the year is the initial year or
final year for all entities; or, if the
partnership or an entity formed as
a limited liability company classi-
fied as a partnership for federal
income tax purposes sells or
exchanges 50 percent or more
of ownership interest (technical
termination).
NOTE: When there has been a
change in an accounting period
that requires filing of a short-year re-
turn, the nonresident withholding tax is
calculated on an annualized basis.
How To File a Short-Year Return
If the entity is required to file a short-
year return, the entity must use the
most recent PA-20S/PA-65 Information
Return, schedules and forms on the
department’s website.
If the tax year on the forms is not the
current tax year and/or the tax year for
which the entity is filing, then the entity
must cross out and write the correct tax
year for which it is filing a short-year
return.
IMPORTANT: Short-year returns
are due on the 15th day of the
fourth month following the end of the
short period.
If the entity is a calendar-year
filer and files a short-year return,
do not fill in the fiscal-year oval. A
short-year return is not a fiscal-year
return.
Technical Termination
A technical termination occurs when
there is a sale or exchange of 50
percent or more of the total interest in
the partnership capital and profits
within a 12-month period and the tax-
a
ble year of the partnership closes.
The terminating partnership is required
to file a short-year PA-20S/PA-65 Infor-
mation Return for the taxable year end-
ing with and including the date of its
t
ermination.
The new partnership is required to file
a PA-20S/PA-65 Information Return for
its taxable year beginning after the
date of termination of the terminated
partnership. The new partnership re-
tains the employer identification num-
ber of the terminated partnership and
its Revenue ID if it is a limited liability
company.
When the new partnership files its PA-
20S/PA-65 Information Return, it is re-
quired to list on the Partner/Member/
Shareholder Directory all partners/
members/shareholders (owners) in-
volved with the entity within the tax
year or in this case, short year.
If the entity cannot file the PA-20S/PA-
65 Information Return on or before the
original return due date, the entity can
use REV-276, Application for Exten-
sion of Time to File, to file for a five-
month extension. The department will
now accept REV-276 Application for
Extension of Time to File the PA20S/
PA65. Information Return through the
MeF Fed/State e-file program. See
How to Obtain an Extension of Time to
File.
The department will not grant an exten-
sion for more than five months, except
for taxpayers outside the U.S.
An extension of time to file does not ex-
tend the payment deadline. Pay in full
the amount reasonably estimated as
the entity’s Pennsylvania tax due on or
before the original return due date.
How To Obtain an Extension of
Time to File
Follow one of these procedures when
applying for an extension of time to file:
1. If the entity owes catch-up nonres-
ident withholding tax with the
PA-20S/PA-65 Information Return,
the entity may either pay by check
with a timely filed REV-276, Appli-
cation for Extension of Time to File
or submit the application and pay-
ment through the MeF Fed/State
e-file program on or before the
original return due date. The return
d
ue date is usually April 15 for cal-
endar-year filers and the 15th day
of the fourth month following the
close of the fiscal year for fiscal-
year filers. The department will not
send a letter granting the exten-
sion but it will write if there is a
question concerning the request.
2. If the entity has an extension of time
to file federal Form 1065 or federal
Form 1120S and does not owe
Pennsylvania nonresident withhold-
ing tax on the PA-20S/PA-65 Infor-
mation Return, the department will
automatically grant the entity a five-
month extension of time to file the
PA-20S/PA-65 Information Return.
The entity is not required to submit
REV-276 or federal Form 7004 be-
fore the original return due date.
However, federal Form 7004 must
be submitted with the filing of the
PA-20S/PA-65 Information Return.
3. If the entity does not have an ex-
tension to file federal Form 1065 or
federal Form 1120S, request an
extension on REV-276, and file it
in sufficient time for the depart-
ment to consider and act upon it
prior to the original return due date.
The REV-276 can be filed elec-
tronically through the MeF
Fed/State program.
CAUTION: The REV-276 can be
filed in paper form or electroni-
cally. If the entity filed the PA-20S/PA-
65 Information Return and did not file
the REV-276 but requested an exten-
sion for the federal return, federal Form
7004 can be substituted for the REV-
276. In such cases, include a copy of
the federal Form 7004 with the PA-
20S/PA-65 Information Return.
A five-month extension of time to file
requires PA Schedules RK-1 and NRK-
1 to be filed one month earlier and al-
lows owners time to prepare and file
their personal income tax returns within
EXTENSION OF TIME
TO FILE
PREVIOUS PAGE
14 www.revenue.pa.gov
the normal six-month time period for in-
d
ividuals.
Q
ualifying for the Extension
When an entity requests an extension
of time to file, it does not extend the
f
iling time for its owners. Each owner
m
ust individually obtain an extension
o
f time to file the PA-40, Individual
Income Tax Return, PA-41, Fiduciary
Income Tax Return, or PA-40 NRC,
Nonresident Consolidated Tax Return.
An extension of time to file a PA-20S/
PA-65 Information Return does not ex-
tend the time for full payment of the
catch-up nonresident withholding tax,
nor does it preclude an assessment of
interest and penalty for late payment
and underpayment of tax due.
To get the extra time to file you must:
1. Properly estimate the current year
nonresident withholding tax liability
using the information available
to you.
2. Enter the tax liability on REV-276.
3. File REV-276 by the original due
date of the return along with a
check or money order for the cur-
rent year tax liability, or file elec-
tronically through the MeF
Fed/State program.
Mail REV-276 To:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280504
HARRISBURG PA 17128-0504
How to File the PA-20S/PA-65
Information Return with an
Extension
When filing a PA-20S/PA-65 Informa-
tion Return for which an extension was
requested, the entity must:
Fill in the “Extension Requested
oval at the top of the PA-20S/PA-
65 Information Return;
Submit a copy of federal Form
7004 with the PA-20S/PA-65 Infor-
mation Return if the entity did not
file REV-276, Application for Ex-
tension of Time to File;
Submit a statement with the fed-
eral confirmation number received
if the entity electronically filed a
federal extension and did not file
REV-276;
List the extension payment amount
on the statement and be sure to
include the total nonresident with-
holding payments on PA-20S/PA-
65 Schedule NW, Line B.
NOTE: Do not submit REV-276,
Application for Extension of Time
to File, with the PA-20S/PA-65 Informa-
t
ion Return.
Extension Due Dates
See When To File.
The entity must submit the PA-20S/
PA-65 Information Return, the PA-20S/
PA-65 supporting schedules and the
PA-20S/PA-65 Schedules RK-1 and/or
NRK-1, and if applicable, the final with-
holding payment or “catch-up” payment.
Where the entity should mail the PA-
20S/PA-65 Information Return de-
pends whether there is a final
withholding payment or “catch-up”
payment. Choose the appropriate
mailing address:
Without Payment:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280509
HARRISBURG PA 17128-0509
With Payment:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280502
HARRISBURG PA 17128-0502
See Final Payment of Nonresident
Withholding Tax for how and where to
send the final nonresident withholding
tax payment.
Final Payment of Nonresident
Withholding Tax
Payment by Check
If your tax preparation software prints
a Nonresident Withholding Voucher
facsimile approved by the Department
of Revenue, that voucher may be used
when no preprinted voucher (PA-40ES
(P/S)) is available. Mail the voucher
and check to the department. See
Where to File.
In the event the entity does not have a
preprinted voucher and your software
is unable to produce a department ap-
proved facsimile, make the check or
money order payable to PA Dept. of
R
evenue. Write the entity’s federal em-
ployer identification (FEIN) and 2016
Final Nonresident Withholding on the
check or money order. The department
w
ill need the entity’s FEIN to accurately
apply the payment. See Where to File.
Do not staple the check or money
order to the return.
Electronic Payment
See Fed/State Electronic Filing Option
For Estimated Nonresident Individual
Quarterly Withholding Payments.
IMPORTANT: The nonresident
individual quarterly withholding
tax payment may not be submitted
through Electronic Funds Transfer
(EFT), credit/debit cards or e-TIDES.
Mailing Address for Final
Withholding Payment
See Where To File.
RECORDKEEPING
An entity must retain all books and
records for at least seven years. All
amounts reported on the PA-20S/PA-
65 Information Return, schedules and
forms are subject to verification and
audit by the department.
Information that substantiates the cal-
culation of basis for an entity or individ-
ual, in any investment (partnership, S
corporation, stocks, bonds, real estate,
etc.), must be retained indefinitely or
for at least four years after the invest-
ment is sold.
Information that substantiates the cal-
culation of basis in an investment shall
include but not be limited to broker
statements, Pennsylvania and other
states’ income tax returns, PA-20S/PA-
65 Schedules RK-1, closing state-
ments, etc.
Foreign Address Standards
If the entity is located outside the U.S., it
is important to write the foreign address
WHERE TO FILE
HOW TO PAY
COMPLETING
PA-20S/PA-65
INFORMATION RETURN
PREVIOUS PAGE
15www.revenue.pa.gov
on the PA-20S/PA-65 Information Re-
turn, according to U.S. Postal Service
standards.
Failure to use these standards may
delay processing or correspondence
necessary to complete the processing
of the return.
To comply with foreign address stan-
dards, use the following rules when
completing the address portion of the
PA-20S/PA-65 Information Return.
Eliminate apostrophes, commas,
periods and hyphens. Write the ad-
dress in all uppercase letters. Ad-
dresses should have no more than
five lines and must be written in ink
or typewritten. Pencil is unaccept-
able.
Write the name of the entity in the
spaces provided. Mail may not be
addressed to a person in one
country “in care of” a person in an-
other country. The address of
items sent to general delivery must
indicate the addressee’s full legal
name.
Write the address in the space pro-
vided, including street and building
name and number, apartment or
suite numbers, city name and city
or provincial codes. All lines of the
delivery address should appear in
all capital letters. The house num-
ber and street address or box
number must appear when mail is
addressed to towns or cities.
Write only the name of the country
in the space provided for the city or
post office.
Do not include any entries in the
state field other than “OC” for Out-
of-Country. The ZIP Code spaces
should remain blank on the PA-
20S/PA-65 Information Return.
Providing the address in this for-
mat will better ensure that the de-
partment is able to contact the
entity if we need additional infor-
mation.
Below are two examples of properly
completed foreign addresses:
Foreign Address Examples
Name: DIETRICH ENTERPRISES
Address 1: HARTMANNSTRASSE 7
Address 2: 5300 BONN 1
City: GERMANY
State: OC
ZIP Code: Leave Blank
O
R
N
ame: DIETRICH ENTERPRISES
A
ddress 1: 117 RUSSELL DR
Address 2: LONDON W1PGHQ
City: ENGLAND
State: OC
ZIP Code: Leave Blank
Canada (Only) Address Example
The following address format may be
used when the postal address delivery
zone number is included in the ad-
dress:
Name: NORTH BY NORTHWEST CO
Address 1: 1010 CLEAR ST
Address 2: OTTAWA ONT K1A OB1
City: CANADA
State: OC
ZIP Code: Leave Blank
If the entity’s address does not fit in the
available spaces on the PA-20S/PA-65
Information Return using this format,
please include a separate statement
with the return showing the complete
address.
NOTE: For a Canadian address,
two spaces must exist between
the province abbreviation and the
postal code. Please review the exam-
ple where “ONT(province abbrevia-
tion) and “K1A OBI (postal code) are
separated by two spaces in the ad-
dress format.
Filing Status
Fill in the oval for a PA S corporation
(PA-20S) or partnership (PA-65).
P-S KOZ
Fill in the oval if approved for the Key-
stone Opportunity Zone and include a
PA Schedule P-S KOZ Keystone Op-
portunity Zone.
Federal Employer Identification
Number (FEIN)
Enter the entity’s nine-digit federal em-
ployer identification number.
Revenue ID
Enter the Revenue ID, if applicable.
The Revenue ID is a unique, 10-digit
number assigned by the Department of
Revenue to replace the seven-digit Tax
A
ccount ID number. The seven-digit
Tax Account ID number may be used if
the 10-digit Revenue ID number is not
k
nown.
North American Industry
Classification System
(NAICS) Code
Provide your six-digit federal NAICS
code identified on Page 1 of your fed-
eral Form 1120S or 1065.
Inactive Oval
Fill in the oval if the entity was inactive
during the 12-month accounting pe-
riod. The entity would still be required
to file the PA-20S/PA-65 Information
Return, but schedules and accompa-
nying documentation do not need to be
submitted.
Business Name
Enter the complete name of the entity
or business.
First Line of Address
Enter the street address. If the address
has an apartment number, suite or RR
number, enter after the street address.
Eliminate all punctuation such as apos-
trophes, commas, periods and hy-
phens.
NOTE: If the street address
along with the apartment num-
ber, suite or RR number does not fit on
the first line of address, then enter the
street address on the second line of
address and the apartment number,
suite or RR number on the first line of
address.
Second Line of Address
Enter the post office box, if applicable.
If there is no post office box, leave the
second line of address blank. Eliminate
all punctuation such as apostrophes,
commas, periods and hyphens.
For a foreign address, enter the city or
municipal designation. See Foreign
Address Examples.
For a Canadian address, enter the city
and postal delivery zone number. See
Canada (Only) Address Example.
PAGE 1
TAX IDENTIFICATION NUMBERS
PREVIOUS PAGE
16 www.revenue.pa.gov
IMPORTANT: If the address has
only a post office box, enter on
the first line of address.
City or Post Office, State and
ZIP Code
Enter the appropriate information in
each box. Eliminate all punctuation
s
uch as apostrophes, commas, peri-
ods and hyphens.
For Canadian and foreign addresses,
the bottom line of the address should
show only the country name, written in
full (no abbreviations) and in capital let-
ters. See Foreign Address Example
and Canada (Only) Address Example.
Method of Accounting
Indicate whether the entity uses the
accrual, cash or other method of ac-
counting. If other, please identify your
method of accounting on a supplemen-
tal statement.
Income is calculated under the method
of accounting on which the entity reg-
ularly calculates income in keeping its
books. If the department determines
that no method has been regularly
used or the method used does not
clearly reflect income, the calculation
of income shall be made under a
method that clearly reflects income in
the opinion of the department.
IMPORTANT: If the entity
changes its method of account-
ing, it must submit a copy of its federal
Form 3115, Application for Change in
Accounting Method, with its PA-20S/
PA-65 Information Return.
Extension Requested
Fill in the oval if the entity requested an
extension of time to file the PA-20S/
PA-65 Information Return. If the entity
did not file REV-276, Application for Ex-
tension of Time to File, submit a copy
of federal Form 7004, Application for
Automatic Extension of Time to File
Certain Business Income Tax, Informa-
tion, and Other Returns with the PA-
20S/PA-65 Information Return. See
Extension of Time To File.
Initial Year
I
f the entity is in the first year of opera-
tions, fill in the oval.
Fiscal Year
A fiscal year is a 12-month accounting
p
eriod, other than a calendar year,
ending on the last day of a particular
month, for example July 1 to June 30
of the following year.
The entity must use its federal taxable
year for Pennsylvania purposes.
If the entity does not file on a calendar-
year basis, fill in the fiscal-year oval.
Enter the month, day and year (MMD-
DYY) when the fiscal year begins and
ends.
NOTE: A fiscal year includes any-
thing other than a calendar year.
Do not fill in the fiscal-year oval
for a calendar-year filer whose
initial year does not begin 01/01/20XX
or for a calendar-year filer whose final
return does not end 12/31/20XX.
If the entity is a calendar-year filer and
files a short-year return, do not fill in
the fiscal-year oval.
Short Year
Fill in the short-year oval if the entity is
filing a short-year return. Enter the
month, day and year (MMDDYY) when
the short year begins and ends.
For more information about short-year
returns, refer to Short-Year Return.
Final Return
Fill in the oval if the PA S corporation
or partnership went out of business
during its taxable year.
FEIN/Name/Address Change
Fill in the oval if the FEIN, name or ad-
dress on the PA-20S/PA-65 Informa-
tion Return differs from the last filed
return.
Amended Information Return
Fill in the oval if amending the PA-20S/
PA-65 Information Return. The entity
must also provide amended PA-20S/
PA-65 Schedules RK-1 and NRK-1 to
its owners.
For more information on amended re-
turns, see How To Amend PA-20S/PA-
65 Information Return.
Date Activity Began
In Pennsylvania
T
he entity must include the date activ-
ity began in Pennsylvania.
I
f the entity is only filing the PA-20S/
PA-65 Information Return because it
has a Pennsylvania resident share-
holder or partner and has no Pennsyl-
vania-source income, then the date
activity began in Pennsylvania would
be the date the shareholder or partner
moved to Pennsylvania or the date a
partnership or S corporation had a res-
ident partner or shareholder invest in
the entity.
Total Taxable Business
Income (Loss) from
Operations Everywhere
In Part I, report the entity’s income
(loss) from all business operations
from all sources within and from out-
side Pennsylvania.
Taxable Business Income (Loss)
from Operations Everywhere
Enter the calculation from PA-20S/PA-
65 Schedule M for the total amount of
taxable income (loss) from its own sep-
arate operation of a business, profes-
sion or farm from the books and
records of the entity.
This is the entity’s total business in-
come (loss) from all of its operations
everywhere. Do not include income
(loss) received as an owner from other
entities providing PA-20S/PA-65
Schedules RK-1 or federal Schedules
K-1 on Line 1a. Report only the income
(loss) from an entity’s own operations
from all locations inside Pennsylvania
and outside Pennsylvania. If a negative
amount, fill in the “loss” oval.
Share of Business Income (Loss)
from All Other Entities
Enter the share of net profit (loss) that
the entity receives as a partner or
shareholder (owner). Also complete
the PA-20S/PA-65 Information Return,
FILL IN THE
APPLICABLE OVALS
LINE INSTRUCTIONS
PAGE 1 - PART I
LINE 1a
LINE 1b
PREVIOUS PAGE
17www.revenue.pa.gov
Part IX on Page 3. If a negative
a
mount, fill in the “loss” oval.
I
f the entity completing the PA-20S/
P
A-65 Information Return received a
P
A-20S/PA-65 Schedule RK-1 from
another entity in which it is a share-
holder or partner (owner), this PA-
20S/PA-65 Schedule RK-1 already has
the classified income (loss) amount for
completing PA-20S/PA-65 Information
Return.
On Line 1b, enter the business income
(loss) received as an owner from all
other entities reported on the PA-20S/
PA-65 Schedules RK-1, Line 1.
Total Income (Loss)
Add Line 1a and Line 1b. Include
losses when determining Line 1c. If
Line 1c is a negative, fill in the “loss”
oval.
Previously Disallowed Corporate
Net Income (CNI) Deductions
PA S Corporations Only
Enter the total amount of previously
disallowed corporate net income de-
ductions on this line.
The department allows any deduction
that it disallowed when the corporation
was subject to Pennsylvania corporate
net income tax as an additional deduc-
tion while the corporation is in a PA S
corporation status, except a net loss
carry forward deduction.
Pennsylvania limits the additional de-
duction to the same extent and in the
same manner that the additional de-
duction would have been allowed had
the corporation remained subject to
Pennsylvania corporate net income
tax.
Any previously disallowed Pennsylva-
nia corporate net income deduction
shall be separately determined and
must be taken against net profits from
a business, profession or farm. Resi-
dent shareholders are allowed the full
amount of any previously disallowed
Pennsylvania corporate net income de-
duction.
Nonresident shareholders are allowed
only a previously disallowed Pennsyl-
vania corporate net income deduction
to the extent that the deduction would
have been considered a deduction
against income from sources within
Pennsylvania in the year disallowed.
Submit a separate statement for each
deduction indicating the basis for each
claimed deduction and the year in
which the deduction was disallowed.
Use the earliest previously disallowed
Pennsylvania corporate net income de-
duction first.
Disallowed Accelerated
Depreciation on
Tax Preference Items
Pennsylvania allows accelerated de-
preciation of tax preference items that
were disallowed when the corporation
was subject to Pennsylvania corporate
net income tax as an additional deduc-
tion, to the extent and amount allowed
had the corporation remained subject
to Pennsylvania corporate net income
tax. For further information, refer to the
department’s regulations in 61 Pa.
Code §153.14.
Total Adjusted Business
Income (Loss)
Subtract Line 1d from Line 1c. Include
losses when determining Line 1e. If a
negative amount, fill in the “loss” oval.
Apportioned/Allocated PA-Taxable
Business Income (Loss)
In Part II, an entity that has business
operations within and outside Pennsyl-
vania must allocate or apportion its in-
come (loss), costs, expenses and
liabilities if it has an owner that is:
A nonresident individual;
A resident or nonresident estate or
trust;
A PA S corporation; or
A partnership
NOTE: If the entity’s opera-
tions are entirely within
Pennsylvania, the amounts in Part
I will be the same as the amounts
in Part II, PA Source Column. Part
II, Outside PA Column, will have all
zero amounts.
When an entity operates a busi-
ness that is neither wholly within
nor wholly outside Pennsylvania
and is required to allocate or ap-
portion its income (loss), it allo-
cates by separate accounting if
both of the following conditions are
met:
The business operations within
Pennsylvania and the business op-
erations outside Pennsylvania
constitute independent profit
centers. This means there are no
transfers of finished or partly fin-
ished goods, raw materials, sup-
plies, services, or operational
assets interspersed; each center is
free to buy outside; and because
of geographical location, no center
is in direct competition with an-
other; and
The entity retains its books so that
the amounts of revenues, costs,
and expenses attributable to Penn-
sylvania operations can be prop-
erly disclosed.
For more information on the appor-
tionment and allocation of income
from a business carried on partly
within and partly outside Pennsyl-
vania, refer to 61 Pa. Code §109.5.
If the entity must apportion income,
submit a completed PA-20S/PA-65
Schedule H, Apportioning Income
from a Business, Profession or
Farm derived from sources both
within and outside Pennsylvania.
Please review the PA-20S/PA-65
Schedule H instructions on the de-
partment’s website.
NOTE: For reporting income
(loss) from another entity on
Lines 1b, 2b and 2f, the Pennsyl-
vania entity needs both a PA-
20S/PA-65 Schedule RK-1 and
NRK-1 so it can pass through
Pennsylvania-source amounts and
amounts from sources outside
Pennsylvania to its owners.
If the other entity is not a PA S cor-
poration, partnership or entity
formed as a limited liability com-
pany that is classified as a partner-
ship or S corporation for federal
LINE 1e
PAGE 1 - PART II
LINE 1d
LINE 1c
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18 www.revenue.pa.gov
income tax purposes, a supplemental
s
tatement must be provided by the
other entity that shows Pennsylva-
nia-source amounts in the same
class in which the other entity re-
c
eived the income.
N
et Business Income (Loss)
Outside PA Column
Subtract Line 2e in Part II from Line 1a
in Part I. Enter the difference. If a neg-
ative amount, fill in the “loss” oval.
Share of Business Income (Loss)
from Other Entities
Outside PA Column
Subtract Line 2f in Part II from Line 1b
in Part I. Enter the difference. If a neg-
ative amount, fill in the “loss” oval.
If the entity completing the PA-20S/
PA-65 Information Return received a
PA-20S/PA-65 Schedule RK-1 and/or
NRK-1 from another entity in which it is
an owner, it already has the classified
income (loss) amount for completing
the PA-20S/PA-65 Information Return.
If the entity completing this PA-20S/
PA-65 Information Return received a
federal Schedule K-1 from another en-
tity, in which it is an owner, it should re-
quest a PA-20S/PA-65 Schedule RK-1
and/or NRK-1 from the entity because
the federal Schedule K-1 does not
classify income for Pennsylvania per-
sonal income tax purposes.
Previously Disallowed PA-Source
Corporate Net Income Deductions
Outside PA Column
PA S Corporations Only
Subtract Line 2g in Part II from Line 1d
in Part I. Enter the difference.
Calculate Adjusted/Apportioned
Net Business Income (Loss)
Outside PA Column
Add Line 2a and Line 2b and then sub-
tract Line 2c. Enter the difference. In-
clude losses when determining Line
2d. If a negative amount, fill in the
loss” oval.
Net Business Income (Loss)
P
A-Source Column
I
f the entity has operations inside and
outside of Pennsylvania, enter the ap-
portioned income (loss) from PA-20S/
PA-65 Schedule H, Line 7. If the entity
only has operations inside Pennsylva-
nia, enter the allocated income (loss)
from its PA-20S/PA-65 Schedule M,
Part B, Section G, Line 1. If a negative
amount, fill in the “loss” oval.
Share of Business Income (Loss)
from Other Entities
PA-Source Column
Enter the sum of Line 1 of all the PA-
20S/PA-65 Schedules NRK-1 received.
If a negative amount, fill in the “loss
oval.
If the entity completing the PA-20S/
PA-65 Information Return received a
PA-20S/PA-65 Schedule NRK-1 from
another entity in which it is an owner,
this PA-20S/PA-65 Schedule NRK-1 al-
ready has the classified income (loss)
amount for completing PA-20S/PA-65
Information Return.
If the entity completing the PA-20S/
PA-65 Information Return received a
federal Schedule K-1 from another en-
tity in which it is an owner, it should re-
quest a PA-20S/PA-65 Schedule RK-1
and/or NRK-1 from the entity because
the federal Schedule K-1 does not
classify income for Pennsylvania per-
sonal income tax purposes.
Previously Disallowed PA-Source
Corporate Net Income Deductions
PA-Source Column
PA S Corporations Only
Multiply Line 1d by the applicable ap-
portionment figure(s) from the RCT-
101, PA Corporate Tax Report, for the
year(s) in which the deduction was dis-
allowed.
The corporation’s corporate net in-
come apportionment decimal for the
year in which the deduction was disal-
lowed may be used. Enter the result.
Calculate Adjusted/Apportioned
Net Business Income (Loss)
PA-Source Column
Add Line 2e and Line 2f and then sub-
tract Line 2g. Include losses when de-
termining Line 2h. If a negative
amount, fill in the “loss” oval.
Allocated Other PA PIT Income
(Loss)
In Part III, the entity must allocate all
other income (loss) to Pennsylvania
source and outside Pennsylvania. If all
owners are full-year nonresident indi-
viduals, zero amounts must be shown
in Part III on Lines 3 and 4.
Interest Income from PA Schedule A
PA-Source
Enter the amount from PA-20S/PA-65
Schedule A, Line 8. This is the total
amount of interest income earned by
the entity.
The entity must report on Line 3 any
amount it received for the use of its
money that it does not include in an-
other income class. Do not report on
Line 3 interest from obligations that are
statutorily free from Pennsylvania tax.
Include in Line 1a, not Line 3, in-
terest from assets to generate
working capital and interest used in op-
erating commercial activities (generally
from current assets) when determining
net profit (loss).
Dividend Income from
PA Schedule B
PA-Source
Enter the amount from PA-20S/PA-65
Schedule B, Line 9.
Dividend income is any distribution to
the entity of cash or property from the
LINE 2c
LINE 2d
LINE 2e
LINE 2f
LINE 2g
LINE 2h
LINE 2b
LINE 2a
PAGE 1 - PART III
LINE 3
LINE 4
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19www.revenue.pa.gov
accumulated earnings and profits or
current earnings and profits of a corpo-
ration, association, or business trust.
Include in Line 1a, not Line 4,
dividend income from assets to
generate working capital and dividend
income that the entity used in operat-
ing its commercial activities (generally
current assets) when determining its
net profit (loss).
Net Gain (Loss) from
PA Schedule D
PA-Source Column
A PA-20S/PA-65 Schedule D must be
completed for any net gain (loss) in-
come.
These figures represent net gains or
net income, less net losses, derived
from the sale, exchange or disposition
of property including real or personal,
whether tangible or intangible, as
determined in accepted accounting
principles and practices per 72 P.S.
§7303(a)(3).
Net Gain (Loss) from
PA Schedule D
Outside PA Column
If the entity disposed of property lo-
cated outside Pennsylvania, complete
PA-20S/PA-65 Schedule D-III and
Schedule D-IV. Enter the amount from
PA-20S/PA-65 Schedule D-III, Line 16.
If a negative amount, fill in the “loss
oval.
Net Gain (Loss) from
PA Schedule D
PA-Source Column
If the entity disposed of property lo-
cated inside Pennsylvania from infor-
mation on its books and records
complete PA-20S/PA-65 Schedule D-I
and Schedule D-II. Enter the amount
from PA-20S/PA-65 Schedule D-I, Line
16. If a negative amount, fill in the
“loss” oval.
IMPORTANT: Include the sales,
exchanges or dispositions of in-
ventories and/or stock-in-trade in de-
termining net business income (loss).
Rent/Royalty Net Income (Loss)
from PA Schedule M, Part B
Net Rent
Net rents and royalties from real and tan-
g
ible personal property located in Penn-
sylvania are allocable to Pennsylvania.
Net Royalties
Patent, copyright and other intangible
royalties are allocable to Pennsylvania
to the extent that the payer of such in-
come uses the patent or copyright in
Pennsylvania.
A business uses a patent in Pennsyl-
vania to the extent that it employs the
patent in the production, fabrication,
manufacturing, or other processing in
Pennsylvania, or to the extent that it
produces a patented product in Penn-
sylvania.
A business uses a copyright in Penn-
sylvania to the extent that it prints or
otherwise publishes in Pennsylvania.
Rent/Royalty Net Income (Loss)
from PA Schedule M, Part B
Outside PA Column
Complete and submit a PA-20S/PA-65
Schedule E. The PA-20S/PA-65
Schedule E should reflect what is re-
ported on federal Form 8825, Rental
Real Estate Income and Expenses of
a Partnership or S Corporation.
Complete PA-20S/PA-65 Schedule M,
Part B to reflect your Pennsylvania ad-
justments. From PA-20S/PA-65 Sched-
ule M, Part B, Section G, enter the
difference of Line 2 minus Line 1. If a
negative amount, fill in the “loss” oval.
Rent/Royalty Net Income (Loss)
from PA Schedule M, Part B
PA-Source Column
Complete and submit a PA-20S/PA-65
Schedule E. PA-20S/PA-65 Schedule
E should reflect what is reported on
federal Form 8825, Rental Real Estate
Income and Expenses of a Partnership
or S Corporation.
Complete PA-20S/PA-65 Schedule M,
P
art B to reflect your Pennsylvania
adjustments. Enter the amount from
PA-20S/PA-65 Schedule M, Part B,
Section G, Line 1. If a negative
amount, fill in the “loss” oval.
E
states or Trusts from
PA Schedule J
Outside PA Column
Complete and submit the PA-20S/PA-
65 Schedule J. If the entity is a benefi-
ciary of an estate or trust, enter the
total figure from the PA-20S/PA-65
Schedule J, Column (d) minus the total
figure from PA-20S/PA-65 Schedule J,
Column (c).
Estates or Trusts from
PA-20S/PA-65 Schedule J
PA-Source Column
Complete and submit PA-20S/PA-65
Schedule J. If the entity is a beneficiary
of an estate or trust, enter the total fig-
ure from the PA-20S/PA-65 Schedule
J, Column (c).
Gambling and Lottery Winnings
(Loss) from PA Schedule T
Complete and submit PA-20S/PA-65
Schedule T. The entity must enter any
winnings it realizes from gambling or
lotteries including cash prizes from the
Pennsylvania Lottery. It may not
deduct any expenses related to realiz-
ing such income. However, it can offset
winnings and losses within this income
class. Submit with Schedule T a de-
tailed statement/explanation of any
amount reported, including information
such as the source of winnings, spe-
cific amounts, etc.
Gambling and Lottery Winnings
(Loss) from PA Schedule T Outside
PA Column
Enter the total figure from the PA-20S/
PA-65 Schedule T, Column (b) Line 5
LINE 5b
LINE 6
LINE 6a
LINE 6b
LINE 5a
LINE 5
LINE 7a
LINE 7b
LINE 8
LINE 8a
PREVIOUS PAGE
20 www.revenue.pa.gov
minus the total figure from PA-20S/PA-
65 Schedule T, Column (a) Line 5. If a
negative amount, fill in the “loss” oval.
G
ambling and Lottery Winnings
(
Loss) from PA-20S/PA-65
Schedule T
PA-Source Column
Enter the total figure from the PA-20S/
PA-65 Schedule T, Column (a) Line 5.
If a negative amount, fill in the “loss
oval.
Total Other PA PIT Income (Loss)
PA-Source Column
If all owners are full-year residents, a
combination of Pennsylvania resi-
dentsand nonresidents; or a part-year
resident, then Line 9 equals the sum of
Lines 3, 4, 5a, 5b, 6a, 6b, 7a, 7b, 8a
and 8b. Include losses.
If all owners are full-year nonresident
individuals, then Line 9 equals the sum
of Lines 5b, 6b, 7b and 8b. Include
losses. If a negative amount, fill in the
“loss” oval.
When determining income (loss)
distributable to their owners for
each class of income, the entity does
not use Line 9 because the income
(loss) is reflected in Line 9.
The figure on Line 9 is a sum of total
other income used in calculating accu-
mulated adjustments account and the
total in Part IV.
Summary
Below are cross references for resident
and nonresident partners and share-
holders (owners) for Parts I, II, III from
the PA-20S/PA-65 Information Return
and the line entries on the PA-20S/PA-
65 Schedule(s) RK-1 or NRK-1.
Resident Partners and
Shareholders (Owners)
Business Income
PA-20S/PA-65
Schedule RK-1
Part I, Line 1e RK-1, Line 1
Interest Income
PA-20S/PA-65 Schedule RK-1
Part III, Line 3 RK-1, Line 2
Dividend Income
PA-20S/PA-65
Schedule RK-1
Part III, Line 4 RK-1, Line 3
Net Gain (Loss) - Schedule D
PA-20S/PA-65
Schedule RK-1
Part III, Line 5a+5b RK-1, Line 4
R
ent, Royalty, Net Income
PA-20S/PA-65
Schedule RK-1
Part III, Line 6a+6b RK-1, Line 5
Estates or Trust Income
PA-20S/PA-65
Schedule RK-1
Part III, Line 7a+7b RK-1, Line
6Gambling and Lottery Winnings
PA-20S/PA-65
Schedule RK-1
Part III, Line 8a+8b RK-1, Line 7
Nonresident Partners and
Shareholders (Owners)
Business Income
PA-20S/PA-65
Schedule NRK-1
Part II, Line 2h NRK-1, Line 1
Net Gain (Loss) - Schedule D
PA-20S/PA-65 Schedule NRK-1
Part III, Line 5b NRK-1, Line 2
Rent, Royalty, Net Income (Loss)
PA-20S/PA-65 Schedule NRK-1
Part III, Line 6b NRK-1, Line 3
Estates or Trust Income
PA-20S/PA-65 Schedule NRK-1
Part III, Line 7b NRK-1, Line 4
Gambling and Lottery Winnings
PA-20S/PA-65 Schedule NRK-1
Part III, Line 8b NRK-1, Line 5
Total PA S Corporation or
Partnership Income (Loss)
In Part IV, the entity calculates the dif-
ference between its book income (loss)
and the income (loss) it reports on the
PA-20S/PA-65 Information Return. The
amounts reported to Pennsylvania dif-
fer from the federal reportable income
(loss).
Total Income (Loss) per Books
and Records
The entity uses book income to arrive
at this figure. This figure (book income)
would not take into account any federal
or Pennsylvania tax adjustments. This
figure is not Pennsylvania income after
adjustments.
Enter the total entity income (loss) from
its underlying Pennsylvania books and
records for the taxable year. If a nega-
t
ive amount, fill in the “loss” oval.
Interest and gains that the entity de-
rives from government obligations, ex-
empt from Pennsylvania personal
income tax, do not pass through to its
owners as taxable.
Conversely, the entity cannot use
losses on Pennsylvania personal in-
come tax-exempt obligations to offset
taxable income.
In addition, the entity must include
such income (loss) on Line 10 as the
Pennsylvania-exempt income (loss) af-
fects each owner’s basis. Accordingly,
the entity passes through to each
owner its pro rata share of the Penn-
sylvania-exempt income (loss).
Total Reportable Income (Loss)
If the entity has only full-year resident
individual owners or both full-year res-
ident and nonresident individual own-
ers, add Line 1e and Line 9. If a
negative amount, fill in the “loss” oval.
If entity has only full-year nonresident
individual owners, add Line 2h and
Line 9. If a negative amount, fill in the
“loss” oval.
Total Nontaxable/Non Reportable
Income (Loss)
This amount represents the difference
between book income and Pennsylva-
nia-reportable income (loss). Subtract
Line 11 from Line 10 (include losses).
If a negative amount, fill in the “loss
oval.
Pass Through Credits
In Part V, the entity is required to
identify pass through credits that it re-
ports on the PA-20S/PA-65 Informa-
tion Return.
PAGE 2 - PART IV
LINE 10
LINE 9
LINE 8b
LINE 11
LINE 12
PAGE 2 - PART V
PREVIOUS PAGE
21www.revenue.pa.gov
T
otal Other Credits. Submit
P
A 20S/PA-65 Schedule OC
E
nter amount from Schedule OC, Line
1
7. The entity is required to submit the
PA-20S/PA-65 Schedule OC detailing
all credits.
Resident Credit
This figure is based on composite re-
turns filed in other states on behalf of
the individual owners. It is an individual
tax credit that is passed through to
owners. Submit a copy of the out-of-
state returns for all resident credits
claimed.
Certain PA S corporations are not
taxed as S corporations in other states.
Report taxes paid in those other
states on PA-20S/PA-65 Schedule OC,
Line 5.
The resident credit for taxes paid to
other states or countries is now only
available as a credit for taxes paid to a
state of the U.S., the District of Colum-
bia, the Commonwealth of Puerto Rico
or any territory or possession of the
U.S. The credit for taxes paid to foreign
countries is no longer permitted as a
credit against a Pennsylvania Personal
Income Tax liability.
Pennsylvania 2016 Quarterly Tax
Withholding Payments/Extension
Payment for Nonresident Owners
Enter the amount from PA-20S/PA-65
Schedule NW, Line B. The amount on
Line 14a will include an extension pay-
ment (if one was made) as listed and
reported on PA-20S/PA-65 Schedule
NW, Line B.
Final Payment of Nonresident
Withholding Tax
Enter the amount from PA-20S/PA-65
Schedule NW, Line D. See How To
Pay.
Total Pennsylvania Income Tax
Withheld
A
dd Line 14a and Line 14b. Enter the
total here.
International ACH Transactions
The Federal Office of Foreign Assets
Control has imposed additional reporting
requirements on all electronic banking
transactions that directly involve a finan-
cial institution outside of the territorial ju-
risdiction of the U.S. These transactions
are called international ACH transac-
tions (IAT). Presently, the Pennsylvania
Department of Revenue does not sup-
port IAT debit transactions. Taxpayers
who instruct the department to process
electronic banking transactions on their
behalf are certifying that the transactions
do not directly involve a financial institu-
tion outside of the territorial jurisdiction
of the U.S. at any point in the process.
Distributions for Partnerships
On Lines 15 through 18, list all distri-
butions and guaranteed payments
made to partners during the taxable
year.
Distributions of Cash, Marketable
Securities, and Property (Do not
include guaranteed payments.)
Distributions that the partnership
makes that represent cash, marketable
securities, and other property that are
not guaranteed payments may repre-
sent Pennsylvania-taxable income to
the extent the distributions exceed the
resident partner’s outside basis.
Non-liquidating Distributions from
Partnership to Partner
With respect to non-liquidating distribu-
tions from a partnership to a resident
partner, the partner’s adjusted basis in
its partnership interest is decreased to
the extent of the partnership’s Pennsyl-
vania personal income tax adjusted
basis in the property distributed to the
partner.
In non-liquidating distributions, a resi-
dent partner will recognize taxable in-
come to the extent that the partnership’s
adjusted basis in the property distrib-
uted exceeds the resident partner’s ad-
justed basis in its partnership interest.
Although not taxable to a nonresident
partner, the nonresident partner re-
duces his or her economic investment
by the partnership’s adjusted basis in
the property distributed.
Liquidating Distributions from
Partnership to Partner
With respect to liquidating distributions
from a partnership to a resident part-
ner, the partners adjusted basis in its
partnership interest is decreased to the
extent of the fair market value of the
property distributed to the partner.
In liquidating distributions, a resident
partner will recognize taxable gain on
PA-40 Schedule D to the extent that
the fair market value of the property
distributed exceeds the resident part-
ner’s adjusted basis in its partnership
interest.
Guaranteed Payments for Capital
or Other Services
Enter the total guaranteed payments
for capital or other services made to
the partners.
Pennsylvania personal income tax law
characterizes such distributions as:
A withdrawal proportionately from
the capital of all partners;
A gain from the disposition of the
recipient’s partnership interest and
a loss from the disposition of the
other partners’ partnership inter-
ests, to the extent derived from the
capital of the other partners; and
A return of capital by the resident
recipients to the extent derived
from their own capital. The distri-
butions that the partnership makes
that represent repayments of the
partner’s own capital are not in-
come for Pennsylvania personal
income tax purposes.
IMPORTANT: Pennsylvania
personal income tax law does
not allow a deduction for guaran-
teed payments for capital or if serv-
ices have not been rendered.
LINE 14a
LINE 14b
LINE 14c
PAGE 2 - PART VI
LINE 15
LINE 13b
LINE 13a
LINE 16
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22 www.revenue.pa.gov
All Other Guaranteed Payments for
S
ervices Rendered
Enter the total guaranteed payments to
partners to the extent that the partner-
ship makes guaranteed payments for
s
ervices rendered directly in the pro-
d
uction of income for a Pennsylvania
income class.
The partnership characterizes guaran-
teed payments to partners in the fol-
lowing manner:
To the extent paid for services ren-
dered directly in the production of in-
come from a business, profession,
or farm, the guaranteed payments
are gross income from that income
class; and
To the extent paid for services ren-
dered directly in the production of
rental or royalty income, the guar-
anteed payments are gross in-
come from that income class.
If guaranteed payments
have been deducted in cal-
culating business income, include
these payments on Line 17.
Guaranteed Payments to
Retired Partners
Guaranteed payments to retired part-
ners are not taxable if the exception as
stated in IRC §1402(a) (10) is met.
Only nontaxable amounts should be
reported on Line 18. For further detail,
refer to the Pennsylvania Personal In-
come Tax Guide, Chapter 16.
IMPORTANT: Pennsylvania
does not allow a deduction for
guaranteed payments for the use of
capital, or if services have not been
rendered. Each recipient partner re-
ports its classified income (loss) in
each class by adding its guaranteed
payments to the amounts in their PA-
20S/PA-65 Schedule(s) RK-1 and/or
NRK-1, Part IV.
Distributions from PA Accumulated
Adjustments Account
Generally, distributions from the Penn-
sylvania accumulated adjustments
account (AAA) are not taxable to the
extent of the resident shareholder’s
basis. The resident shareholder will
recognize taxable income to the extent
that the Pennsylvania AAA distribution
exceeds the shareholder’s basis in its
stock.
Distributions for PA S Corporations
O
n Lines 19 and 20, list all distributions
made to shareholders during the tax-
able year.
A distribution that a PA S corporation
makes from its Pennsylvania accumu-
lated earnings and profits before be-
coming a PA S corporation is dividend
income to its resident shareholders.
Other distributions can represent a
non-taxable return of the resident
shareholders’ stock basis.
Nontaxable return of basis distribution
will reduce each resident shareholder’s
basis in the stock first. If the non-tax-
able return of distribution exceeds the
shareholder’s basis in its stock hold-
ings, the shareholder can apply the ex-
cess against the basis of any
indebtedness of the PA S corporation
to that shareholder. If the distribution
exceeds the shareholder’s basis in the
stock and the PA S corporation’s in-
debtedness, the resident shareholder
must report a gain from the disposition
of property.
If the PA S corporation distributes ap-
preciated property, it must treat the dis-
tribution as if it sold the property to the
shareholders at fair market value. Such
a distribution will produce a gain from
the sale of property that the PA S cor-
poration will have to report as net gain
(loss) from the sale, exchange or dis-
position of property.
Although not taxable to a nonresident
shareholder, the nonresident share-
holder reduces its economic invest-
ment by the fair market value of the
property distributed.
A nonresident cannot deduct losses in
excess of its economic investment in
the PA S corporation.
IMPORTANT: When distribu-
tions are determined from all in-
come sources and the shareholders
are only full-year nonresident individual
owners, the Pennsylvania AAA distri-
bution should be factored by the PA-
20S/PA-65 Schedule H percentage to
p
revent premature depletion of the
P
ennsylvania AAA balance, which may
trigger a possible tax event.
Distributions of Cash, Marketable
Securities, and Property
Distributions by the PA S corporation
from its C corporation earnings and
profits are Pennsylvania-taxable divi-
dends. Include such Pennsylvania-tax-
able dividends on each shareholder’s
PA-20S/PA-65 Schedule RK-1, Line 3.
Distributions of cash, marketable secu-
rities and property (other than divi-
dends) in excess of the shareholder’s
Pennsylvania AAA are considered a
tax-free return of investment to the ex-
tent of the resident shareholder’s basis
in its stock. The resident shareholder
will recognize taxable income to the
extent that the fair market value of
such distribution exceeds the resident
shareholder’s basis in its stock.
Although not taxable to a nonresident
shareholder, the nonresident share-
holder reduces its economic invest-
ment by the fair market value of the
property distributed.
Other Information
This section asks a series of questions
similar to federal Schedule B. The
questions should be answered with a
“Yesor “No.” If the entity answered
“Yes”, supplemental statements must
be submitted.
The entity must answer “Yes” to Ques-
tion 1 if during the tax year:
It owned an interest in another
partnership, foreign (located out-
side the U.S.) or domestic; or
It was the tax owner of a foreign
entity, located outside the U.S. that
was disregarded as an entity sep-
arate from its owner under federal
Treasury Regulations §301.7701-
2 and 301.7701-3. The tax owner
of a foreign entity located outside
LINE 18
LINE 19
LINE 17
PAGE 2 - PART VII
LINE 1
LINE 20
PREVIOUS PAGE
23www.revenue.pa.gov
the U.S. that was disregarded as an
e
ntity is treated as owning the as-
s
ets and liabilities of the foreign
disregarded entity located outside
the U.S. for purposes of U.S. in-
come tax law.
The statement must show each
e
ntity’s name, federal employer
identification number (if any), and
the country under whose laws the
entity was organized if the entity di-
rectly or indirectly owned at least a
10 percent interest in any other for-
eign (located outside the U.S.) or
domestic partnership.
The entity must answer “Yesif there
are any tax-exempt partners/members/
shareholders and select tax-exempt as
the owner type on the PA-20S/PA-65
Schedule RK-1 and/or NRK-1.
The entity must answer “Yes” and sub-
mit a statement indicating entity and
foreign location if the partnership, S
corporation or limited liability company
classified as a partnership or PA S cor-
poration had any owners located out-
side the U.S. at any time during the tax
year.
The entity must answer “Yesif there
was a distribution of property or a
transfer (e.g., by sale or death) of a
partner/member interest during the tax
year (partnership only). If the entity an-
swered yes, submit a statement indi-
cating the disposing partner, the
acquiring partner and the amount paid
for the interest.
The entity must answer “Yes” if the fed-
eral government changed taxable in-
come as originally reported for any
prior tax year for which amended re-
turns have not been filed in Pennsylva-
nia. If the entity answered “Yes”,
submit a statement indicating tax year
and include a copy of the Revenue
Agent’s Report.
If required, the entity must file an
amended return within 30 days of the
adjustment.
The entity must answer “Yes” if either
1 or 2 of the following apply to the part-
nership:
1. At any time during the tax year, the
entity had signature or other au-
thority over a