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Form PWE
SFN 28754 (12-2020), Page 2
An election remains in effect until it 1. Check to see that all applicable
Instructions to is revoked by the nonresident PTE items on the form are filled in and
member. The election does not that the information in Part 2 is
Form PWE affect the nonresident PTE member’s correct.
requirement to file a North Dakota 2. Do not withhold North Dakota
Purpose of form income tax return and pay any tax income tax on the nonresident
Under North Dakota Century due on its North Dakota distributive PTE member’s North Dakota
Code (N.D.C.C.) § 57-38-31.1, a share of income. distributive share of income
passthrough entity is required to starting with the tax year
withhold North Dakota income tax specified in Part 3.
from a nonresident member’s North Instructions for nonresident 3. On your North Dakota income
Dakota distributive share of income. PTE member tax return filed for each tax year
A nonresident member that is a Complete Form PWE as instructed the election is in effect, fill in
passthrough entity (nonresident below and submit it to the the circle under “Form PWA or
PTE member) may elect to exempt passthrough entity on or before the Form PWE” for the nonresident
its North Dakota distributive share last day of the passthrough entity’s PTE member on the applicable
of income from this withholding tax year. To make (or revoke) an schedule as follows—
requirement. The election is made election with respect to more than If filing Form 38 (fiduciary
on Form PWE. one passthrough entity, a separate return), see Schedule BI,
Form PWE must be completed and Column 6.
given to each one. Keep a copy of
General instructions the completed Form PWE for your If filing Form 58 (partnership
To elect exemption from North records. return), see Schedule KP,
Column 7.
Dakota income tax withholding on
its North Dakota distributive share Making the election. To make If filing Form 60 (S corporation
of income from a passthrough entity, the election, complete Parts 1, 2, return), see Schedule KS,
a nonresident PTE member must 3, and 5. Do not complete Part 4. Column 7.
complete Form PWE and submit it to In Part 3, specify the tax year the 4. Attach a copy of the Form PWE
the passthrough entity on or before election is to take effect. If you to your North Dakota income
the last day of the passthrough and the passthrough entity have tax return for each tax year the
entity’s tax year for which the different tax years, specify the tax election is in effect. Keep the
election is to take effect. year of the passthrough entity for original signed Form PWE for your
which the election is to take effect. records.
A “nonresident PTE member” The election remains in effect until
means a passthrough entity with a you revoke it. Revocation. If you receive a
commercial domicile outside North Form PWE revoking a previously
Dakota that owns an interest in, or Revoking the election. To made election, you must withhold
is a beneficiary of, a passthrough revoke a previously made election, North Dakota income tax from the
entity that is subject to the complete Parts 1, 2, 4, and 5. Do nonresident PTE member’s North
withholding requirement under not complete Part 3. Dakota distributive share of income
N.D.C.C. § 57-38-31.1. Commercial starting with the tax year specified
domicile refers to the location of Entity type. For purposes of the in Part 4.
the principal office from which entity type in Parts 1 and 2, the
the entity’s activities are normally following apply:
managed or directed. If the entity is a limited liability Need assistance?
company, check the box Phone: 701.328.1247
A “passthrough entity” means corresponding to how it is filing
a general partnership, limited for federal income tax purposes. Speech or hearing impaired:
1.800.366.6888 (Relay ND)
partnership, limited liability If “Grantor trust” or “Disregarded
partnership, limited liability limited entity” is checked, provide the Email: individualtax@nd.gov
partnership, S corporation, trust, name and social security number Website: www.nd.gov/tax
grantor trust, limited liability (or FEIN) of the trust’s settlor or
company not taxed as a C entity’s owner.
corporation, and any other similar Privacy Act Notification. In compliance
entity not taxed at the entity with the Privacy Act of 1974, disclosure of a
level for North Dakota income tax social security number or Federal Employer
purposes. Instructions for passthrough Identification Number (FEIN) on this form is
required under N.D.C.C. §§ 57-01-15 and
entity 57-38-31.1, and will be used for tax reporting,
If you receive a Form PWE from a identification, and administration of North
Dakota tax laws. Disclosure is mandatory.
nonresident PTE member, do the Failure to provide the social security number or
following: FEIN may delay or prevent the processing of
this form.
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