2024 Wisconsin Form PW-2 Instructions 
 
 Purpose of Form PW-2 

 Nonresident owners (partners, members, shareholders, or beneficiaries) use Form PW-2 to 
 request an exemption from Wisconsin’s withholding tax on income from pass-through entities. 
 For  each  taxable  year of the nonresident owner,  a separate Form PW-2 is required, but a 
 nonresident owner may request an exemption for multiple pass-through entities on one Form 
 PW-2. 
 
 Pass-through  entities,  including  tax-option  (S)  corporations,  partnerships,  limited  liability 
 companies (LLCs) treated as tax-option (S) corporations or partnerships, estates, and trusts, 
 are  required  to  withhold  Wisconsin  franchise  or  income  taxes  on  income  distributable to  a 
 nonresident owner. Section 71.775(3)(a)3., Wis. Stats., provides that a pass-through entity is 
 not required to withhold on income distributable to a nonresident owner who files an approved 
 Form PW-2 with the department or who receives a continuous PW-2 exemption letter from the 
 department. 
 
 Who May File Form PW-2? 

 Any nonresident owner who makes sufficient Wisconsin estimated payments may file Form 
 PW-2.  Additionally,  in  certain  situations, detailed  in  the  specific  instructions that follow,  the 
 nonresident owner may file Form PW-2 even if no estimated payments are made. 
 
 Note: Most  first  year  filers  are  not  eligible  for  the  exemption.  Also,  a  nonresident  owner 
 whose  Wisconsin  source  income  from  the  pass-through  entity  is  less  than  $2,000  is 
 automatically exempt from withholding and should not file Form PW-2. 
 
 Due Date for Form PW-2 

 The filing deadline for Form PW-2 depends on the type of pass-through entity for which the 
 nonresident owner is claiming the exemption. 

 For  tax-option  (S)  corporations,  partnerships,  and  limited  liability  companies  (LLCs) 
 treated as a tax-option (S) corporation or partnership:  Form PW-2 must be filed by the 
 last  day  of  the  first  month  following  the  close  of  the  pass-through  entity's  taxable  year  for 
 which the nonresident owner is requesting the exemption. 
 
 Example  1:  For  a  2024  calendar  year  tax-option  (S)  corporation,  Form  PW-2  is  due  by 
 January 31, 2025. 
 
 Example 2: For a partnership with a fiscal year from October 1, 2024 to September 30, 2025, 
 Form PW- 2 is due by October 31, 2025. 
 
 For  estates  and  trusts: Form  PW-2  must  be  filed  by  the  last  day  of  the  second  month 
 following  the  close  of  the  pass-through  entity's  taxable  year  for  which  the  nonresident 
 beneficiary is requesting the exemption. 
 
IC-005a (R. 07-24) 

                         2024 Wisconsin Form PW-2 Instructions 

 Example 1: For a 2024 calendar year trust, Form PW-2 is due by February 28, 2025. 

 Example 2: For an estate with a fiscal year from October 1, 2024 to September 30, 2025, 
 Form PW-2 is due by November 30, 2025. 

 Note: If the due date falls on a weekend or holiday, the due date becomes the business day 
 immediately following the weekend or holiday. 
 
 Caution: Department Approval Required 
 
 The exemption from withholding on Form PW-2 must be approved by the department in order 
 to be valid. Approvals depend on items such as filing history, adequate payments, estimated 
 withholding,  and  delinquencies.  After  the  nonresident  owner  files  Form  PW-2  with  the 
 department, the department will notify the nonresident owner whether or not the withholding 
 exemption is approved within approximately 30 days. The department will mail the approved 
 withholding exemption letter or the denial letter to the nonresident owner. The department’s 
 determination may not be appealed. 
 
 The nonresident owner is responsible for notifying the pass-through entity when an exemption 
 is approved, and a pass-through entity is required to withhold until it receives the approved 
 Form PW-2 from the owner. 

 Instructions 
 
 At the top right corner of Form PW-2, enter the nonresident owner's taxable year of the 
 exemption request. 

 Example 1: A nonresident shareholder files a calendar year 2024 tax return, but the tax-option 
 (S) corporation for which the shareholder is requesting the exemption files a 2023 Form 5S 
 with a fiscal year of July 1, 2023 through June 30, 2024. The nonresident shareholder must 
 enter "24" in the space provided. If the department approves the request, the tax-option (S) 
 corporation is not required to withhold on the shareholder's share of income from the 2023 
 Form 5S with a fiscal year of July 1, 2023 through June 30, 2024. 
 
 Example 2: A nonresident shareholder files a 2024 tax return with a fiscal year of September 
 1, 2024 through August 31, 2025, but the tax-option (S) corporation for which the shareholder 
 is requesting the exemption files a 2023 Form 5S with a fiscal year of October 1, 2023 through 
 September 30, 2024. The nonresident shareholder must enter "24" in the space provided. If the 
 department approves the request, the tax-option (S) corporation is not required to withhold on 
 the shareholder's share of income from the 2023 Form 5S with a fiscal year of October 1, 
 2023 through September 30, 2024. 
 
 Instructions for Part 1 

 Information about Nonresident Owner Requesting Exemption You (nonresident owner) 
 must enter your information in Part 1. 

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                             2024 Wisconsin Form PW-2 Instructions 

 Name.  Individuals,  enter  your  name  in  the  order  requested  (last  name,  first  name,  middle 
 initial).  Estates,  enter  the  decedent's  name  in  the  order  requested  (last  name,  first  name, 
 middle initial). All other owners such as tax-option (S) corporations, partnerships, and trusts, 
 enter your full legal name. 
 
 Nonresident  owner's  social  security  number  (SSN)  or  federal  employer  identification 
 number  (FEIN). Individuals,  enter  your  complete  SSN.  Estates,  enter  the  decedent's 
 complete SSN and the estate's complete FEIN. Disregarded entities including grantor trusts 
 that do not have a FEIN, enter your owner's complete FEIN/SSN. All other owners, enter your 
 complete FEIN. 
 
 Address,  city,  state,  and  zip  code. Enter your complete address. Include your apartment 
 number, if any, in the address box. 
 
 Last day of owner's taxable year.   Enter the ending date of your taxable year. For example, 
 an individual nonresident owner filing a 2024 calendar year tax return enters "December 31, 
 2024". 

 Type of taxpayer. Check the appropriate box to indicate what type of taxpayer you are. If you 
 are  a  disregarded  entity,  you must  provide the name  and  SSN/FEIN of  your  owner.  If  you 
 check the "Other" box, describe the type of entity you are in the space provided. 
 
 Form  used  to  report  your  Wisconsin  source  income. Check  the  appropriate  box  to 
 indicate what form will be used to report your Wisconsin source income. A description of each 
 form is given below. 
 
•       Form 1NPR: Income tax return for nonresident individuals 
•       Form 2: Income tax return for estates and trusts 
•       Form 3: Partnership income tax return 
•       Form 4: Non-Combined corporation franchise or income tax return 
•       Form 4T: Exempt organization business franchise or income tax return 
•       Form 5S: Tax-option (S) corporation franchise or income tax return 
•       Form 6: Combined corporation franchise or income tax return 

 Caution: The department will not approve Form PW-2 on behalf of individuals who file on a 
 composite return (Form 1CNS or Form 1CNP). 

 If you are a grantor trust, a member of a combined return, or a disregarded entity, you must 
 provide the name and SSN/FEIN of the taxpayer reporting the income. 

 Example 1 
 Facts: 
•       John Doe Trust (nonresident owner of ABC Partnership) is a grantor trust filing Form 
        PW-2 to request an exemption for ABC Partnership 

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                         2024 Wisconsin Form PW-2 Instructions 

•       John Doe is the grantor of the John Doe Trust 
•       John Doe reports the income from ABC Partnership on their individual income tax return 
        (Form 1NPR) 
 After John Doe Trust enters its name, FEIN, address, and last day of its taxable year, it must: 
        o  Check the "Estate or Trust" box 
        o  Check the "Form 1NPR" box and enter the name and SSN of John Doe in the 
           space provided 

 Example 2 
 Facts: 
•       DEF, LLC (nonresident owner of ABC Partnership) is filing Form PW-2 to request an 
        exemption for ABC Partnership 
•       DEF,  LLC  is  a  disregarded  entity  for  income  tax  purposes  and  owned  by  MNO 
        Corporation 
•       MNO Corporation reports the income from ABC Partnership on Form 4 
 
 After DEF, LLC enters its name, FEIN, address, and last day of its taxable year, it must: 
        o  Check  the  "Disregarded  Entity"  box  and  enter  the  name  and  FEIN  of  MNO 
           Corporation in the space provided 
        o  Check the "Form 4" box and enter the name and FEIN of MNO Corporation in the 
           space provided 

 Example 3 
 Facts: 
•       XYZ, LLC (nonresident owner of ABC Partnership) is filing Form PW-2 to request an 
        exemption for ABC Partnership 
•       XYZ, LLC is a disregarded entity for income tax purposes and owned by JKL 
        Corporation 
•       JKL Corporation is a member of a combined return (Form 6) which is filed by GHI 
        Corporation. After XYZ, LLC enters its name, FEIN, address, and last day of its taxable 
        year, it must: 
        o  Check the "Disregarded Entity" box and enter the name and FEIN of JKL 
           Corporation in the space provided 
        o  Check the "Form 6" box and enter the name and FEIN of GHI Corporation in the 
           space provided 
 
 Instructions for Part 2 

 In the space provided, you (nonresident owner) must enter your full legal name. 
 
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                         2024 Wisconsin Form PW-2 Instructions 

 Third Party Designee If you want to allow a tax preparer or tax preparation firm, or any other 
 person you choose to discuss your Form PW-2 with the department, check “Yes” in the “Third 
 Party Designee” area of your return. Also, fill in the designee’s name, phone number, and any 
 five digits the designee chooses as their personal identification number (PIN). If you check 
 “Yes,” you are: 

 • Authorizing the department to discuss with the designee any questions that may arise 
   during the processing of your Form PW-2 return. 
    
 • Authorizing the designee to: 
    o  Give the department any information missing from your Form PW-2 return. 
    o  Call the department for information about the processing or status of your Form 
              PW-2 return. 
 •  Not  authorizing  the  designee  to  receive  any  refund  check,  bind  you  to  anything 
   (including  any  additional  tax  liability),  or  otherwise  represent  you  before  the 
   department. 
 
 The designee's authorization will automatically end no later than the due date (without regard 
 to extensions) for filing your tax return for the next taxable year. If you want to expand the 
 designee’s authorization, you must submit Form A-222 (Power of Attorney). 

 You must also sign and date Form PW-2. Include your title (if applicable) in the space provided. 
 Some examples are shown below. 

 • If the nonresident owner is an individual, the individual must sign the return, but the 
   title is not applicable. 
 
 • If the nonresident owner is a partnership, a general partner must sign the return and 
   enter "general partner" in the space provided. 
 • If the nonresident owner is a corporation, an officer of the corporation must sign the 
   return and enter their title (president, treasurer, etc.) in the space provided. 
 • If  the  nonresident  owner  is  an  estate,  the  personal  representative  or  special 
   administrator  must  sign  the  return  and  enter  "personal  representative"  or  "special 
   administrator" in the space provided. 
 • If the nonresident owner is a trust, the trustee must sign the return and enter "trustee" 
   in the space provided. 

 Instructions for Part 3 
 
 You (nonresident owner) must enter the information for the pass-through entity for which you 
 are  requesting  the  withholding  exemption.  Instructions  for  specific  fields  in  this  section  are 
 given below. 
 
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                         2024 Wisconsin Form PW-2 Instructions 

 If you are requesting a pass-through withholding exemption for more than one pass-through 
 entity, complete a separate Part 3, Part 4, and Part 5 for each pass-through entity and include 
 it with the Form PW-2. 
 
 Enter the total number of pass-through entities for which you are requesting an exemption in 
 the space provided. Include this number in each Part 3 you file. 
 
 Name.  Enter the full legal name of the pass-through entity for which you are requesting the 
 exemption. 

Pass-through  entity's  FEIN  or  SSN. Enter  the  pass-through  entity’s  complete  FEIN.  If  the 
entity is an estate, enter the complete SSN of the decedent. 

 Address, city, state, and zip code. Enter the pass-through entity's complete address. 
 
 Pass-through entity's last day of taxable year. Enter the ending date of the pass-through 
 entity’s taxable year for which you will be reporting income from the pass-through entity on 
 your Wisconsin income or franchise tax return. 
 
 For example, a nonresident shareholder files a calendar year  2024 tax return, but the tax-
 option (S) corporation for which the shareholder is requesting the exemption has a fiscal year 
 of July 1, 2023 through June 30,  2024. The nonresident shareholder must enter "June 30, 
 2024". 

 Type of pass-through entity. Check the appropriate box to indicate the type of pass-through 
 entity.  For  example,  if  the  pass-through  entity  is  an  LLC  that  is  taxed  as  a  tax-option  (S) 
 corporation, check the "Tax-Option (S) Corporation" box. 
 
 Instructions for Part 4 
 
 You (nonresident owner) must enter the amount of Wisconsin income and credits you expect 
 to be allocated to you from the pass-through entity provided in Part 3 for your taxable year. If 
 you do not know what these amounts are, determine a reasonable estimate. You may wish to 
 contact the pass-through entity to assist in determining these amounts. 
 
 Caution: If your Wisconsin source income from the pass-through entity is less than $2,000, do 
 not file Form PW-2 because the pass-through entity is already exempt from withholding on 
 your behalf. 

 Instructions for Part 5 
 
 Reason(s) for Exemption You (nonresident owner) must check all boxes that apply to you. 

 •      Box  1: Check  this  box  if  you  made  estimated  payments  for  your  taxable  year  (or 
        applied an overpayment from the prior tax year). 

        Enter the total amount of these  payments as of the  date  of filing  Form  PW-2  in  the 
        space provided. 

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                       2024 Wisconsin Form PW-2 Instructions 

   Caution: If your estimated payments were not sufficient to cover the income that will 
   be allocated to you from the pass-through entity (after accounting for credits from the 
   pass-through  entity),  include  an  explanation  of  the  reason  why  you  believe  these 
   estimated payments are sufficient. For example, you may have a loss from another 
   activity that partially offsets your income from the pass-through entity. 
 
 • Box 2:   Check this box if you have a Wisconsin source net operating or business loss 
   carryforward which exceeds the amount of Wisconsin income that will be allocated to 
   you  from  the  pass-through  entity.  Enter  the  amount  of  your  Wisconsin  source  net 
   operating or business loss carryforward in the space provided. 

   Caution: Do not check this box unless you have filed Wisconsin income or franchise tax 
   returns for each year of losses that produced the loss carryforward. 

 • Box 3:   Check this box if you have Wisconsin credits or credit carryforwards from other 
   activities in the current taxable year which exceed the tax (before credits) attributable 
   to your total Wisconsin income from the pass-through entity. 
 
   Enter  the  name  and  amount  of  your  Wisconsin  credit  in  the  space  provided.  If  the 
   credit is coming from a pass-through entity, enter the SSN or FEIN of the pass-through 
   entity. 
 
   If you have more than one credit, include a schedule detailing the name, amount, and 
   source (SSN or FEIN) of each credit. 
 
 • Box  4:  Check this box if you are a pass-through entity and have withheld taxes on 
   your  Wisconsin  income  (including  income  passed  through  to  you  from  a  lower-tier 
   entity) allocable to your nonresident owners unless an exemption applies. 
 
 • Box 5: Check this box for any other reason you believe an exemption should be allowed. 
   Provide a detailed explanation to support your reason. 
 
How to Submit Form PW-2 
 
Form PW-2 must be filed electronically through My Tax Account, unless a waiver is approved by 
the department. If a waiver is approved by the department, you may file Form PW-2 by fax or 
mail. If you will be using a fax, use the fax cover sheet on the last page of these instructions. If 
you will be mailing Form PW-2, mail to: 
 
Wisconsin Department of Revenue 
PO Box 8906 
Madison, WI 53708-8906 

Approval by Department of Revenue 
 
The department will not approve an exemption from withholding under the following conditions 
(this list is not all-inclusive): 

                                        7 
 

                     2024 Wisconsin Form PW-2 Instructions 

•   The form is not filled out completely. 
•   The  information  provided  to  support  the  reason(s)  for  exemption  does  not  match 
    information in department records. 
•   Insufficient estimated payments. 

The department will mail an approval or denial letter within approximately 30 days of the date the 
Form PW-2 is received. If approved, present the letter to the pass-through entity for which you 
are claiming the withholding exemption. The pass-through entity must keep a copy of the letter 
in its records to substantiate the exemption. 
 
 Customer Assistance 

 If you have questions regarding how to complete this form, you may: 
 
  •  Email your question to the department at DORAuditPassThrough@wisconsin.gov 
  • Contact  the  department  at  (608)  264-4229  (Telephone  help  is  also  available  using 
    TTY equipment. Call the Wisconsin Telecommunications Relay System at 711 or, if no 
    answer, (800) 947-3529. These numbers are to be used only when calling with TTY 
    equipment.) 
  •  Write to: 
    Wisconsin Department of Revenue  
    PO Box 8906  
    Madison WI 53708-8906 
 
                                 Applicable Laws and Rules 

  This document provides statements or interpretations of the following laws and regulations enacted as 
  of July 22, 2024: sec. 71.775, Wis. Stats. 

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         2024 Wisconsin Form PW-2 Instructions 

 Form PW-2 Fax Cover Sheet 

 To: Wisconsin Department of Revenue 

     PTE Unit A/C 

     Fax (608) 267-0834 
 
 From:                                                                         
 
 Sender's Phone Number: (   )                                                  _ 

 Number of Pages Submitted (Including Cover Sheet):                               

         Confidential Information 
 This facsimile transmission contains information which may be confidential or legally privileged. These 
 documents are intended only for the use of the Wisconsin Department of Revenue. If you or your firm 
 are not the intended recipient and have received this information in error, you are notified that reading, 
 occupying, disclosing, or distributing these documents, or taking any action based on the information 
 contained  in  them,  is  strictly  prohibited.  These  documents  should  be  returned  to  the  Wisconsin 
 Department of Revenue as soon as possible. Notify the Department of Revenue at (608) 266-3680 so 
 that we can arrange to retrieve the transmitted documents at no cost to you. 

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