Pennsylvania Department of Revenue 2015 Instructions for

WHAT’S NEWTax year changes for the PA-20S/PA-65Information Return, schedules andforms include:Requesting forms and publications infor-mation updated to include Brookwoodaddress. Also, details regarding obtain-ing forms and instructions not postedon the department website updated.

PA-20S/PA-65 InformationReturn Page 1The NAICS Code Change from PreviousYear oval was renamed to Inactive.This oval is for entities that are requiredto file the PA-20S/PA-65 InformationReturn, but have no reportable income(losses), deductions, credits, etc., fromthe operation of foreign or domesticPA S corporations, partnerships orlimited liability companies classified aspartnerships or S corporations for theentire tax reporting period.

Schedule OCThe Section on Strategic DevelopmentArea Job Creation Tax Credit wasremoved from the instructions andform. This credit is no longer available.

Internet. Visit the department’s websiteat www.revenue.pa.gov to:

● Download forms, instructions andpublications;

● Research tax questions by using theOnline Customer Service Center; or

● Search publications online by topicor keyword.

If you do not have Internet access, visityour local public library or district office.

Email. Forms for tax year 2010through the current year can befound on the department’s website atwww.revenue.pa.gov. Requests forforms prior to 2010 should be sent [email protected].

Written Requests. Send writtenrequests for forms to:

PA DEPARTMENT OF REVENUETAX FORM SERVICE UNIT1854 BROOKWOOD STHARRISBURG PA 17104-2244

By phone and in person. You canorder forms and publications by callingthe department’s automated, 24-hour,toll-free forms ordering message serviceat 1-800-362-2050.

You can also get most forms and publi-cations at your nearest district office.Please call ahead to verify a districtoffice’s address and services or visitwww.revenue.pa.gov for more informa-tion. Taxpayer assistance hours are8:30 a.m. to 5:00 p.m.

Copies of Previously Filed ReturnsTo receive copies of previously filedtax returns, complete and sign FormREV-467, Authorization for Releaseof Tax Records, and send it to:

PA DEPARTMENT OF REVENUEBUREAU OF ADMINISTRATIVE SERVICES12TH FLOOR STRAWBERRY SQUAREHARRISBURG PA 17128-1200

You may also fax the request to717-783-4355. If someone other thanthe taxpayer is making the request,Form REV-677, Power of Attorney andDeclaration of Representative, mustbe submitted with the request for therelease of the tax records. If a taxpayeris deceased, sufficient evidence toestablish authority to act for thetaxpayer's estate must be provided tothe department.

Please allow four to six weeks for arequest to be processed.

By law (42 U.S.C. §405(c)(2)(C)(i); 61Pa. Code §117.16), the department hasthe authority to use the Social Securitynumber (SSN) to administer the Penn-sylvania personal income tax and otherCommonwealth of Pennsylvania tax laws.

The department uses the SSN to identifyindividual taxpayers and verify theirincomes. The department also uses theSSN to administer a number of tax-off-set and child-support programs thatfederal and Pennsylvania laws require.The commonwealth may also use theSSN in exchange-of-tax informationagreements with governmental authori-ties. Except for official purposes, Penn-sylvania law prohibits the commonwealthfrom disclosing information that individ-uals provide on income tax returns,including the SSN(s).

PURPOSE OF FORMThe PA-20S/PA-65 form is an informationreturn and personal income tax filingrequirement used to report the income(losses), deductions, credits, etc., fromthe operation of foreign or domestic PA Scorporations, partnerships or limitedliability companies classified as partner-ships or S corporations for federalincome tax purposes (further referredto as “entity” or “entities”).These entities do not pay tax on theirincome but “pass through” any profitsor losses to their owners (shareholders,partners or members). When preparingthe PA-20S/PA-65 PA S Corporation/Partnership Information Return, it isbest to start with the completed federalForm 1120S or federal Form 1065 andthen proceed to the Pennsylvaniaschedules.

The information on the PA-20S/PA-65 Information Return has no

relevance to C corporations except if acredit from PA-20S/PA-65 Schedule OChas been allocated on the PA ScheduleRK-1, Line 9. Otherwise, the only infor-mation relevant to a corporate taxpayeris the PA-20S/PA-65 Schedule H-Corpfor calculating CNI tax.Act 52 of 2013 authorizes the assess-ment of partnerships and PA S corpora-tions at the entity level for understatingincome by more than $1 million. Whilethe provision does not apply to publicly

HOW TO GET FORMS AND PUBLICATIONS

PRIVACY NOTIFICATION

GENERAL INFORMATION

1www.revenue.pa.gov

Pennsylvania Department of Revenue 2015Instructions for Form PA-20S/PA-65

PA S Corporation/Partnership Information ReturnForm PA-20S/PA-65 (10-15)

traded partnerships, it does apply topartnerships with 11 or more partners;partnerships with at least one partnerthat is a corporation, limited liabilitycompany, partnership, S corporation ortrust; PA S corporations with 11 ormore shareholders; or any partnershipor PA S corporation that elects to besubject to the provision.

Important. Pass-through entitiesthat fail to maintain accurate lists

of owner/beneficiary names, addresses,and tax identification numbers nowsubject the general partner, tax matterspartner, corporate officer and/or trusteeof the partnership, S corporation, trustor estate to responsible party assess-ments holding them individually liablefor tax, penalty, and interest owed bythe entity.

Every domestic or foreign PA S corpo-ration (72 P.S. §7330.1), partnership(72 P.S. §7335(c)) or entity formed as alimited liability company that is classifiedas a partnership or S corporation forfederal income tax purposes must filethe PA-20S/PA-65 Information Return ifany of the following apply:

1. During the taxable year, the part-nership, PA S corporation or itsqualified subchapter S subsidiaryearned, received or acquired anygross taxable income (loss) allocableor apportionable to Pennsylvania,regardless of the amount of itsincome (loss) and whether or notthe income was distributed; or

2. During the taxable year, the PA Scorporation had at least one share-holder that was a Pennsylvaniaresident individual or part-yearresident estate, trust or disregardedentity owned by a resident individualor part-year resident; or

3. The partnership, at year-end, hadat least one partner that was aPennsylvania resident individual,estate, trust or disregarded entityowned by a resident individual.

All PA S corporations and limited liabilitycompanies that conduct business inPennsylvania must also file the RCT-101,PA Corporate Tax Report, for the capitalstock/foreign franchise tax.

A minimum penalty is imposed for failureto file appropriate tax reports, including$250 for each return and each missingRK-1 and NRK-1.

Note. A PA S corporation, incor-porated in another state with a

Pennsylvania resident shareholder anda limited liability company organized inanother state with a Pennsylvania resi-dent member having no Pennsylvania-source income or Pennsylvania activity,is not required to file an RCT-101,PA Corporate Tax Report, but is requiredto file the PA-20S/PA-65 return.

Important. All income for an Scorporation must be proportionally

distributed and cannot be specificallyallocated.Inactive S Corporations andPartnershipsIf the PA S corporation or partnershipwas inactive during the entire taxreporting period, the entity must stillsubmit the PA-20S/PA-65 InformationReturn and fill in the Inactive oval.Schedules and supporting documentationdo not need to be included with thePA-20S/PA-65 Information Return.

In many instances, Pennsylvania per-sonal income tax law and regulationsdiffer from federal tax laws. This isespecially true with regard to federalelections concerning the timing of incomeand expense items.Taxpayers should not use federalelections to determine Pennsylvaniapersonal income tax income (loss).PA S corporations, partnerships andlimited liability companies classifiedas partnerships or S corporations forfederal income tax purposes reportincome (loss) using the Pennsylvaniapersonal income tax rules. Pennsylvaniadoes not adopt federal rules for purposesof personal income taxation. Accord-ingly, the determination of reportableamounts in each personal income taxclassification may vary significantly fromthe classifications and amounts asdetermined for federal income taxpurposes.For Pennsylvania personal income taxpurposes, read the rules for classifyingincome found in the PennsylvaniaPersonal Income Tax Guide. The incomemust be reported on the owner’s taxreturn in the same classification ofincome as it is reported to them on theirPA Schedules RK-1 and/or NRK-1 fromthe entity.

The entity must maintain sufficient booksand records to properly report income

(losses), expenses, credits, deductions,and other amounts for Pennsylvaniapersonal income tax purposes. A PA Scorporation or partnership that onlyoperates a business, profession or farmmust include all activities and transac-tions to determine Part I or Part II ofthe PA-20S/PA-65 Information Return,whichever is applicable, regardless of thename of the transaction and regardlessof how it reports for federal income taxpurposes. Use PA-20S/PA-65 Schedule Mto classify federal income (loss) forPennsylvania personal income taxpurposes. Please review the PA-20S/PA-65 Schedule M instructions onthe department’s website atwww.revenue.pa.gov.

Note. Pennsylvania personalincome tax law taxes resident

partners, shareholders and members(owners) on income from sources withinand outside Pennsylvania and taxesnonresident owners on Pennsylvania-source income only.

Starting with tax years beginning on orafter Jan. 1, 2006, all corporations,including those incorporated in a stateother than Pennsylvania, with a validfederal subchapter S election areconsidered Pennsylvania S corporationsand are no longer required to file thePennsylvania S Corporation Election andShareholders’ Consent form (REV-1640)in order to be a Pennsylvania S corpo-ration. Under Act 67 of 2006, allfederal subchapter S corporations arePennsylvania S corporations. Act 67 alsoincludes a provision for federal sub-chapter S corporations to make an elec-tion to not be taxed as a PennsylvaniaS corporation. To make this election, thetaxpayer is required to file a completedREV-976, Election Not to be Taxed as aPennsylvania S Corporation on or beforethe due date, or extended due date, ofthe report for the first period in whichthe election is to be in effect.

Example. A federal subchapter Scorporation that does not want to be aPA S corporation for the tax year endingDec. 31, 2015, must file the REV-976on or before April 18, 2016. If thetaxpayer has a valid extension to filethe RCT-101, PA Corporate Tax Report,then the REV-976 would be due on orbefore Oct. 15, 2016.

CLASSIFYING INCOME

WHO MUST FILE

PENNSYLVANIA S CORPORATION S STATUS

(S ELECTIONS)

2 www.revenue.pa.gov

NOTE: 72 P.S.§7301(n.1) stipu-lates all federal S corporations

filling in Pennsylvania are automaticallyPA S corporations.

An election to not be taxed as a PA Scorporation may not be revoked for fiveyears from the date it went into effect.

A revocation received within this fiveyear period will be effective for the firsttax period for which the taxpayer iseligible to revoke the election.

Elections which first went in effect in2010 may be revoked for 2015. Torevoke the election the corporation mustsend a letter signed by shareholdersholding more than one-half of theshares of stock of the corporation onthe day on which the revocation is made.This letter must contain the name ofthe corporation, the federal employeridentification number (FEIN), the PA Scorporation’s 10-digit Revenue ID orseven-digit PA Account ID and theeffective date of the revocation. If noeffective date is provided the revocationwill be effective for the first tax periodfor which the revocation was timelysubmitted. In the case of a corporationwith qualified subchapter S subsidiaries,the letter must include the name and10-digit Revenue IDs of all qualifiedsubchapter S subsidiaries doing businessin Pennsylvania.

Mail the letter to:PA DEPARTMENT OF REVENUEBUREAU OF CORPORATION TAXESPROCESSING DIVISIONPO BOX 280705HARRISBURG PA 17128-0705

The deadline for submitting a revocationof an election not to be taxed as a PA Scorporation is the 15th day of the thirdmonth of the year in which the revocationis to be in effect. A revocation submittedafter the due date will be in effect forthe next tax period.

Fed/State Electronic Filing forS Corporations and PartnershipsThe department will accept original andamended PA S Corporation/PartnershipInformation Returns (PA-20S/PA-65)including corresponding forms and

schedules filed through the Modernizede-File (MeF) platform provided by theIRS (also known as the Fed/State e-File).

Important. An amended PA-20S/PA-65 Information Return filed

through Fed/State e-File will only beaccepted for 2013 tax year returns andforward. You may not file an amendedPA-20S/PA-65 Information Returnthrough Fed/State e-File prior to 2013tax year return. See How To Amend aPA-20S/PA-65 Information Return priorto 2013 tax year return.Fed/State e-File allows you to filefederal and state returns together orseparately. It is available through taxpreparers or computer software. Whenyou file using Fed/State e-file, thedepartment sends an acknowledgementdirectly to you, your tax professional orElectronic Return Originator (ERO).Whoever submits the tax return willreceive the acknowledgement.The PA-20S/PA-65 Information Returncan be filed through Fed/State e-Filethrough an approved vendor that hastested with and been approved by thedepartment to offer electronic filingin Pennsylvania. Even if a vendor isfederally approved they must also beapproved by Pennsylvania. As a result,every year vendors must go through atesting process for the department'sapproval of their software. When thevendors complete the testing process,they wi l l be l isted on Revenue’se-Services Center atwww.doreservices.state.pa.us.

Note. Mandatory e-filing isrequired for third-party preparers

who prepare 11 or more PA-20S/PA-65returns. The department published a“Method of Filing” notice [43 Pa.B. 5772]for electronic filing requirements in aPennsylvania Bulletin on the PA Depart-ment of Revenue website. Once subjectto this mandate, the preparer mustcontinue to e-file regardless of howmany returns are prepared during acalendar year.

Tax filers may direct third party preparersto file returns in a different method thanmandated.

Electronically Filed Returnswith AttachmentsWhen the PA-20S/PA-65 S Corporation/Partnership Information Return is filedthrough the Fed/State e-File, all attach-ments other than the PA-20S/PA-65schedules must be sent in PDF format.

Examples of other attachments to anelectronically filed PA-20S/PA-65 Infor-mation Return may include statementsrequired with the PA-20S/PA-65 Infor-mation Return; PA Schedules RK-1and NRK-1 that a pass through entityreceives from another pass throughentity; federal Form 8824, Like-KindExchanges; federal Form 3115, Applica-tion for Change in Accounting Method;and federal Form 7004, Application forAutomatic Extension of Time To File.

The department will consider the taxreturn incomplete if all requireddocuments are not submitted with anelectronically filed return.

Important. Do not include thePA-20S/PA-65 Schedules RK-1

and NRK-1 that the entity issues to itsowners as a PDF attachment. Theseschedules are part of the e-File packagefor the PA-20S/PA-65 InformationReturn.

Fed/State Electronic Filing Optionfor Estimated Nonresident IndividualQuarterly Withholding PaymentsThe department accepts through theMeF Fed/State program the electronicpayment of the quarterly estimatedwithholding tax for nonresident ownersfiled with the PA-65ESR. The followingtypes of payments can be electronicallytransferred if filed through Fed/Statee-File program: ● Final nonresident individual tax

withholding tax “catch-up” paymentsubmitted with the 2015 tax yearPA-20S/PA-65 Information Return;and

● 2016 (future) estimated paymentsfor nonresident individual quarterlywithholding tax submitted withthe 2015 tax year PA-20S/PA-65Information Return; and

● Capital stock/foreign franchise taxpayments if a RCT-101 is filed withthe PA-20S/PA-65 InformationReturn; and

● PA-65ESR Quarterly Estimated Pay-ments for nonresident individuals.

Future estimated nonresident individualtax withholding payments for tax year2016 will be stored in the system asseparate electronic transaction paymentsuntil the specified due date.

Important. The nonresidentindividual quarterly withholding

ELECTRONIC FILING

PENNSYLVANIA S CORPORATION S STATUS

REVOCATIONS

HOW TO PAY ELECTRONICALLY

3www.revenue.pa.gov


payment may not be submitted throughElectronic Funds Transfer (EFT), credit/debit cards or e-TIDES.Payment Not Submitted withElectronic ReturnIf the PA-20S/PA-65 Information Returnhas been electronically submitted andthe nonresident withholding was notsent at the time of electronic submissionof the return, then you may send a papercheck for the nonresident withholding.

You may send in the PA-40 ESR(F/C) with a check if the entity

electronically files the PA-20S/PA-65Information Return. Submit a check ormoney order made payable to the PADept. of Revenue along with the PA-40ESR (F/C). Print the entity's federal em-ployer identification number (FEIN) and“2015 Final Nonresident Withholding”on the check or money order.

Caution. Failure to include thePA-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 TAXESPO BOX 280502HARRISBURG PA 17128-0502

For payment by check with paper taxreturn, See How To Pay.

Prior to 2013 Tax Year ReturnIf after filing the PA-20S/PA-65 Infor-mation Return, the entity discovers thatan incorrect PA-20S/PA-65 tax returnhas been submitted to the departmentand/or has amended federal Form 1065or 1120S or if the IRS changed orcorrected any items of income, gain orloss previously reported, the entitymust submit an amended PA-20S/PA-65Information Return to the PennsylvaniaDepartment of Revenue.Prior to the 2013 tax year return, anamended PA S Corporation/PartnershipInformation Return (PA-20S/PA-65)cannot be filed through Fed/State e-FileProgram.When amending a PA-20S/PA-65 Infor-mation Return that was originally filedthrough Fed/State e-File, the entity must:

● Obtain the paper form PA-20S/PA-65Information Return for the year theentity wants to amend. Do not

submit a photocopy of youroriginal PA-20S/PA-65 Infor-mation Return;

● Complete the amended returnincluding all schedules by enteringthe corrected information and submitit with the amended PA-20S/PA-65Schedules 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 theSchedules RK-1 and/or NRK-1;

● Enter the amended amounts andenclose a statement explaining thereasons an amended return is beingfiled. Submit only the forms orschedules supporting the amendedamounts;

● Provide a copy of the amendedPA-20S/PA-65 Schedules RK-1and/or NRK-1 to the partners,shareholders or members; and

● Enclose a copy of the amendedfederal Form 1120S or federal Form1065.

Tax Year Return 2013 and ForwardFor tax years 2013 and forward, thedepartment will accept amendedPA-20S/PA-65 Information Returnsincluding corresponding forms andschedules filed through Fed/State e-File.

To file a 2013 or later amended returnthrough Fed/State E-File, visit Revenue’se-Services Center atwww.doreservices.state.pa.us.

Follow all the steps listed above under“Prior to 2013 Tax Year Return” withexception to the first bullet referencinga paper return.

Over-Reported IncomeIf the entity over reported income,failed to claim allowable credits, failedto report allowable deductions, or eventstranspired that decreased its reportablePennsylvania-taxable income, includingan IRS Report of Change, the entitymust file an amended PA-20S/PA-65Information Return.The amended return must be filedwithin three years of the original duedate or extended due date of thePA-20S/PA-65 Information Return. Theamended PA-20S/PA-65 Schedules RK-1

and/or NRK-1 must show the correctedPennsylvania-taxable income, so theshareholders or partners can requestrefunds of Pennsylvania income taxthey overpaid.In order to obtain any refunds, ownersmust also file an amended Pennsylvaniatax return within three years of theoriginal due date of their return. See HowTo Amend a PA-20S/PA-65 InformationReturn.Under-Reported IncomeIf the entity under reported income,erroneously claimed credits or deductionsto which it was not entitled, or eventstranspired that increased reportablePennsylvania-taxable income, includingan IRS Report of Change, the entitymust file an amended PA-20S/PA-65Information Return within 30 days fromthe determination of such increase. Theamended PA-20S/PA-65 Schedules RK-1and/or NRK-1 must show the correctedPennsylvania-taxable income so theshareholders or partners can pay thetax due.The entity and owners must also file anamended Pennsylvania tax return within30 days of the discovery of the error toreport any increase in income for taxesdue. See How To Amend a PA-20S/PA-65Information Return.

Important. There is no statue oflimitations to file an amended

return when reporting additional income.Amended returns cannot be filed inresponse to a Department of RevenueAssessment. In those cases, an appealmust be filed with the Board of Appeals.

PA S Corporations and PartnershipsEach entity submits with the PA-20S/PA-65 Information Return a completecopy of its federal income tax returnincluding all schedules, statements,federal Schedules K-1, and PA-20S/PA-65Schedules RK-1 and NRK-1 received fromother pass through entities.With the PA-20S/PA-65 InformationReturn, the entity must also submitcopies of the PA-20S/PA-65 SchedulesRK-1 that it provides to resident part-ners/shareholders (owners) and copiesof the PA-20S/PA-65 Schedules NRK-1that it provides to nonresident owners.

Note. If the PA S corporation orlimited liability company has

already forwarded a complete copyof its federal return to the Bureau of

HOW TO AMEND THEPA-20S/PA-65

INFORMATION RETURN

WHEN TO AMEND THE PA-20S/PA-65

INFORMATION RETURN

WHAT TO FILE

Corporation Taxes with the RCT-101, PACorporate Tax Report, do not sendanother copy.PA S Corporations and Partnershipsas Owners of Another PassThrough EntityIf the shareholder, partner, member(owner) of a PA S corporation, partner-ship, limited liability company or abeneficiary of a trust or estate is classifiedas a pass through entity, the issuingentity must provide the entity ownerwith both PA-20S/PA-65 Schedules RK-1and NRK-1 showing the entity owner’sshare of the income (loss) passedthrough from the issuing entity in thesame class in which the issuing entitydistributed the income to its entity owner.When the entity owner receives aPA-20S/PA-65 Schedule RK-1 and NRK-1,it has the classified income (loss) amountto complete the PA-20S/PA-65 Informa-tion Return, Parts I, II and III. Theentity owner is required to file both thePA-20S/PA-65 RK-1 and NRK-1 with theirPA-20S/PA-65 Information Return.Example. When a PA S corporationreceives income from a partnership, thePA S corporation must file a copy of thePA Schedule RK-1 and NRK-1 it receivedfrom the partnership along with thePA-20S/PA-65 Information Return.Partnerships with C CorporationPartnersPartnerships or limited liability companiesclassified as partnerships for federalincome tax purposes with operationswithin Pennsylvania that have corporatepartners that have not filed the RCT-101,PA Corporate Tax Report for the prior orcurrent tax year or whose partners areall C corporations must file the PA-65Corp, Directory of Corporate Partners.If the partners are all C corporations,the partnership:

● Must include a complete copyof federal Form 1065 with thePA-65 Corp, Directory of CorporatePartners; and

● Does not file a PA-20S/PA-65Information Return.

For additional information, please reviewthe instructions for the PA-65 Corp,Directory of Corporate Partners on thedepartment’s website.Limited Partnership Filing asDisregarded Entity for FederalIncome Tax PurposesIf an eligible entity has two membersunder local law but one of the members

of the eligible entity is, for federalincome tax purposes, disregarded as anentity separate from the other memberof the eligible entity, then the eligibleentity cannot be classified as a partner-ship. The eligible entity is either disre-garded as an entity separate from itsowner or an association taxable as acorporation.Example. A limited partnership (LP A)is owned by a single-member limitedliability company (SMLLC) and a limitedpartnership (LP B). The LP B owns 100percent of the SMLLC which gives LP B100 percent control of LP A. The LP Bis required to file the PA-20S/PA-65Information Return and report theincome of both LP A and the SMLLC. TheSMLLC is required to file the RCT-101,PA Corporate Tax Report.PA S Corporations and PartnershipsFiling on Behalf of their QualifiedElecting Nonresident IndividualOwnersPA S corporations, partnerships andlimited liability companies classifiedas partnerships and S corporations forfederal income tax purposes may file acomposite return (PA-40 NRC, Nonresi-dent Consolidated Income Tax Return)on behalf of their qualified nonresidentindividual owners who elect to beincluded in the composite filing.For additional information, pleasereview the instructions for the PA-40NRC, Nonresident Consolidated IncomeTax Return on the department’s website.Individual Owners in a PA SCorporation, Partnership or LimitedLiability Company Classified as aPartnership or S Corporation forFederal Income Tax PurposesIndividual owners of an entity mustreport on the PA-40, Individual IncomeTax Return, their share of the income(loss), passed through from the entity inthe same class in which the partnershipor PA S corporation reported the incometo its individual owners, as shown ontheir PA Schedules RK-1 and/or NRK-1.Limited Liability CompanyRegardless of how a limited liabilitycompany is classified for federal incometax purposes, the limited liabilitycompany is subject to capital stock/foreign franchise tax, reported on theRCT-101, PA Corporate Tax Report. Alimited liability company that meetsthe de minimis standards as outlinedin Corporation Tax Bulletin 2004-01,Application of P.L. 86-272 and de Minimis

Standards, may file the RCT-101D,Declaration of de Minimis PA Activity,in lieu of the RCT-101, affirming thePennsylvania activity during that periodis de minimis.Classified as a C CorporationA limited liability company that elects tofile as a C corporation for federal incometax purposes files as a C corporation forPennsylvania and is subject to Pennsyl-vania corporate net income tax, reportedon the RCT-101, PA Corporate TaxReport. A limited liability company thatfiles as a C corporation with the IRS doesnot file the PA-20S/PA-65 InformationReturn.Classified as an S CorporationA limited liability company that elects tofile as an S corporation for federalincome tax purposes and has notelected out of PA Subchapter S statusfor Pennsylvania by filing form REV-976,Election Not To Be Taxed as A Pennsyl-vania S Corporation, must file as anS corporation for Pennsylvania usingthe PA-20S/PA-65 Information Return.The members are subject to Pennsylvaniapersonal income tax.Classified as a PartnershipA limited liability company that elects tofile as a partnership for federal incometax purposes files as a partnership forPennsylvania using the PA-20S/PA-65Information Return. The members aresubject to Pennsylvania personal incometax.

1. Income Reported on Federal TaxReturn of an Individual

A single-member limited liability com-pany (SMLLC) owned by an individual ora limited liability company jointly ownedby a taxpayer and spouse that files asa disregarded entity for federal incometax purposes is an entity separate fromits owner for corporation tax purposesand is liable for capital stock/foreignfranchise tax but not for Pennsylvaniacorporate net income tax.For personal income tax purposes, asingle-member limited liability companyowned by an individual or a limitedliability company jointly owned by ataxpayer and spouse is a disregardedentity. The income of the limited liabilitycompany is reported on PA-40 ScheduleC, Profit or Loss from Business or Pro-fession, or PA-40 Schedule E, Rent and

CLASSIFIED AS A SINGLE-MEMBERLIMITED LIABILITY COMPANY

5www.revenue.pa.gov


Royalty Income (Loss), of the member’sPA-40, Individual Income Tax Return,and the single-member limited liabilitycompany does not file a PA-20S/PA-65Information Return.

2. Income Reported on Federal TaxReturn of another Business Entity

The income of a single-member limitedliability company owned by anotherentity is reported on the tax return of themember as if earned by the member.The limited liability company is an entityseparate from its owner for corporationtax purposes and is liable for capitalstock/foreign franchise tax. It is prohib-ited to combine the activity of the limitedliability company with the activity of themember when reporting capital stock/foreign franchise tax.

Qualified Subchapter S Subsidiaryand its Parent S CorporationPennsylvania personal income tax lawdoes not treat a qualified subchapterS subsidiary (QSSS) owned by a PA Scorporation (parent) as a separatecorporation for personal income tax.

However for corporation tax, Pennsyl-vania law does treat a QSSS ownedby a PA S corporation as two separatecorporations.

Consequently, a QSSS may not have apersonal income tax filing obligationbut may have a corporation tax filingobligation.

Pennsylvania personal income tax lawtreats all assets, liabilities and items ofincome, deduction and credit of a QSSSas assets, liabilities and items of income,deduction and credit of the parent PA Scorporation for income tax purposes.

The parent PA S corporation mustreport the assets, liabilities and itemsof income, deduction and credit of theQSSS on the parent’s PA-20S/PA-65Information Return.

Note. Shareholders receive theincome distribution from the

parent corporation, not from each QSSS.

The following provisions apply only to aqualified subchapter S subsidiary inPennsylvania:

● A QSSS cannot elect corporationtreatment independent of its parentcorporation.If a QSSS and/or parent of a QSSSdoes not desire to be taxed as a PAS corporation, the parent must fileREV-976, Election Not to be Taxed

as a Pennsylvania S Corporation,for itself and all QSSS(s). The parentcorporation submits a schedule withthe election identifying the name,address, the PA S corporation’sRevenue ID and federal employeridentification number (FEIN) of eachQSSS owned by the corporationand doing business in Pennsylvania.

● The parent corporation is notrequired to register with the Depart-ment of State if its only activity inPennsylvania is its investment in theQSSS that is registered in Pennsyl-vania. In this situation, the parentcorporation is not required to file theRCT-101, PA Corporate Tax Report,while the QSSS is required to filethe RCT-101. If the QSSS is notregistered, then either the parentor the QSSS must register.Additionally, the parent is requiredto file a PA-20S/PA-65 InformationReturn and list the QSSS(s) on PartIX and include all of the QSSS’items of income, deduction andcredit on the return. There is noownership percentage for the QSSSbecause it is a division of the parentcompany.Since the QSSS is a division of theparent company, the QSSS is notincluded on the Partner/Member/Shareholder Directory. Only theowners of the parent company arelisted on the directory.

● For Pennsylvania corporation taxpurposes (capital stock and foreignfranchise tax), the parent corpora-tion and each QSSS is a separateentity with its own Revenue ID.Each entity must file an RCT-101,PA Corporate Tax Report, on aseparate company basis. Eachentity submits with its RCT-101, PACorporate Tax Report, an individualincome statement, beginning andending balance sheet and statementof retained earnings (or a pro–formafederal Form 1120S).

● If the parent corporation must filethe RCT-101, PA Corporate TaxReport, the parent must also submita consolidated beginning and endingbalance sheet that includes allforeign and domestic QSSS(s).Please refer to REV-1200, CT-1PA Corporation Tax Booklet on thedepartment’s website for additionalguidelines.

The parent PA S corporationmay also file the PA-40 Non-

resident Consolidated Income TaxReturn (NRC) for its nonresidentowners if they meet the parameters.See the PA-40 NRC instructions onthe department's website.

Assemble the PA-20S/PA-65 InformationReturn, forms and schedules in thefollowing order:

● Signed original PA-20S/PA-65 Infor-mation Return (Pages 1 through 3).Do not mail a photocopy;

● PA Schedule P-S KOZ – attachbehind the information return;

● PA-20S/PA-65 Partner/Member/Shareholder 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 residentowners;

● PA-20S/PA-65 Schedules NRK-1 thatthe entity provides to nonresidentowners;

● PA-20S/PA-65 Schedule M;● PA-20S/PA-65 Schedule OC and the

required supporting documents forclaiming any of the business creditsallowed 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, includ-ing a copy of the federal extension;

Note. A complete copy of thefederal Form 1120S, U.S. Income

Tax Return for an S Corporation, orForm 1065, U.S. Return of PartnershipIncome, including all schedules, state-ments and federal Schedules K-1 nowmust be included with the entity’sPA-20S/PA-65 PA S Corporation/

ASSEMBLING THE PA-20SPA-65 S CORPORATION/

PARTNERSHIP INFORMATION RETURN

Partnership Information Return. Do notsend a duplicate if the entity is a PA Scorporation or limited liability companyand has already forwarded a completecopy of its federal return to the Bureauof Corporation Taxes with the RCT-101PA Corporate Tax Report.

Assemble documents in theorder above.

● Do not staple documents.● On all additional statements included

with the return, please include theentity’s name, FEIN, tax year andbrief line reference to PA-20S/PA-65 Information Return or PA-20S/PA-65 Schedules.

● Do not include federal returns orfederal Schedules K-1 in CD format.The PA-20S/PA-65 InformationReturn will be considered incompleteif the federal information is notincluded in the paper form with thepaper return unless the entity is aPA S corporation or limited liabilitycompany and included a completecopy of its federal return with theRCT-101, PA Corporate Tax Report.

Important. Do not create a sub-stitute PA-20S/PA-65 Information

Return that has not been approved bythe department. A spreadsheet is anunapproved and unacceptable tax form.Unapproved tax forms filed with the de-partment may be rejected and returnedto the taxpayer or tax return preparer.This may result in an assessment ofinterest and penalty.If filing any tax form other than an officialtax form, please review MiscellaneousTax Bulletin 2008-02 on the department’swebsite.

Estimated Quarterly Tax Paymentsfor Resident OwnersIndividual resident partners and share-holders (owners) are subject to theestimated quarterly tax provisions underthe Pennsylvania Income Tax Act.Resident owners must file declarationsand make quarterly estimated Pennsyl-vania tax payments if they reasonablyexpect income, other than compensationon which Pennsylvania tax is withheld, toexceed $8,000.The individual owners use REV-414I,Individuals Worksheet, and REV-413I,

Instructions for Estimating PA PersonalIncome Tax (For Individuals Only),to determine the proper amount ofestimated tax payments.Estimated Quarterly WithholdingPayments for Nonresident OwnersUnder Act 22 of 1991, entities mustwithhold and pay quarterly Pennsylvaniapersonal income tax for nonresidentpartners and shareholders (owners) thatare individuals, estates or trusts.This quarterly withholding tax paymentis based on each nonresident owner’sexpected share of distributable Pennsyl-vania-source taxable income.When there has been a change in anaccounting period that requires filingof a short-year return, the tax iscalculated on an annualized basis. SeeShort-Year Return.The entity must indicate the amount ofPennsylvania personal income tax itwithheld for each nonresident on thePA-20S/PA-65 Schedule NRK-1 and pro-vide the PA-20S/PA-65 Schedule NRK-1to each nonresident owner.The entity uses REV-414 P/S, Partner-ships and PA S Corporations Withhold-ing Tax Worksheet, and REV-413 P/S,Instructions for Withholding PA PersonalIncome Tax from Nonresident Ownersby Partnerships and PA S Corporations,to determine the proper amount ofwithholding.Partnerships or PA S corporations filinga nonresident quarterly withholding taxreturn for the first time should usePA-40ESR (F/C), Declaration of EstimatedTax or Estimated Withholding Tax forFiduciaries and Partnerships. Thereafter,the department will provide preprintedforms PA-40ES (P/S).The partnership or PA S corporationmakes the initial quarterly tax withhold-ing payment and all future quarterly taxwithholding payments under the federalemployer identification number, nameand address of the entity.

Caution. Do not use the seven-digit PA Account ID number or the

10-digit Revenue ID number for submit-ting non-resident withholding payments.

Important. An entity cannotwithhold Pennsylvania personal

income tax on another entity or a Penn-sylvania resident individual, and shouldnot withhold Pennsylvania personalincome tax on income from intangiblessuch as interest, dividends or sale ofstock.

If the entity did not make any orsufficient estimated quarterly

withholding tax payments for its non-resident owners, a final payment orcatch-up payment can be made withthe filing of the PA-20S/PA-65 Informa-tion Return or PA-40 NRC, NonresidentConsolidated Income Tax Return. Failureto remit withholding payments for allnonresident owners on a quarterly basiswill result in the imposition of interest,penalty and underpayment penalty. SeeFinal Payment of Nonresident WithholdingTax for how and where to send the finalnonresident withholding tax paymentwith the PA-20S/PA-65 InformationReturn.

Please review the instructions on thedepartment’s website for the PA-40 NRC,Nonresident Consolidated Income TaxReturn, for how and where to send thefinal nonresident withholding tax pay-ment with the PA-40 NRC, NonresidentConsolidated Income Tax Return.Be sure to review the electronic option.See Fed/State Electronic Filing Optionfor Estimated Nonresident IndividualWithholding Payments.

Overpayment/Adjustment of With-holding Tax for Nonresident OwnersThe PA-20S/PA-65 PA S Corporation/Partnership Information Return is forinformation purposes only.It is not a return where you can indicatea refund or carry-forward credit. Pay-ments submitted to this account are fornonresident tax withholding only andare held for transfer to the partner,member or shareholder (owner) asindicated on their individual tax returns.The department will not make theassumption that the entity paid morethan was needed.Under Act 22 of 1991, entities mustwithhold quarterly Pennsylvania personalincome tax from nonresident partnersand shareholders (owners) that areindividuals, estates or trusts. This with-holding tax is based on each nonresidentowner's expected share of distributablePennsylvania-source taxable income.The partnership, PA S corporation orlimited liability company classified as apartnership or PA S corporation isrequired to remit the withholding tax tothe department on a quarterly basis.If the entity overpaid the nonresidentwithholding tax, the entity should passthrough the total nonresident owners’withholding tax payment (including theoverpayment) as PA Nonresident Tax

ESTIMATED QUARTERLYTAX PAYMENTS AND

WITHHOLDING

7www.revenue.pa.gov


Withheld on Line 6 of their PA ScheduleNRK-1. The owners can then include theLine 6 amount as a tax payment ontheir respective PA-40, PennsylvaniaIncome Tax Return, on Page 2, Line 17,Nonresident Tax Withheld from your PASchedule(s) NRK-1.

If the entity did not pass through theoverpayment of nonresident tax with-holding to its nonresident owners on PASchedule NRK-1, and if the entity wantsa refund or to carry forward to the nexttax year the entire amount of tax with-held or the excess over the withholdingpassed through to the nonresident own-ers that are individuals, estates or trusts(providing the entity did not file a PA-40Nonresident Consolidated Income TaxReturn), the entity must submit awritten request to:

PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESNONRESIDENT WITHHOLDING TAXREFUNDPO BOX 280600HARRISBURG PA 17128-0600

The request must be on companyletterhead and include the entity’s name,federal employer identification number,tax year, Social Security number(s) ofthe owner(s), amount of nonresidentwithholding paid, amount of nonresidentwithholding tax liability, the requestedrefund amount and/or carry-forwardto the next tax year of nonresidentwithholding and reason for the request.

File the PA-20S/PA-65 InformationReturn for the current calendar year orthe fiscal year that begins in the currenttax year and ends in the next tax year.Use the current tax year return for a taxyear of less than 12 months that beginsand ends in the current tax year.

To remain consistent with the federaltax due date, the due date for filing2015 Pennsylvania tax returns will beon or before midnight, Monday, April 18,2016. The U.S. Postal Service postmarkdate on the envelope is proof of timelyfiling. If the return cannot be filed bythe due date, request an extension oftime to file.

For a calendar-year filer, file the currenttax year PA-20S/PA-65 InformationReturn and PA-20S/PA-65 SchedulesRK-1 and NRK-1 on or before April 18,2016, including an extension date ofSept. 15, 2016.

For a fiscal-year filer, file the current taxyear PA-20S/PA-65 Information Returnand PA-20S/PA-65 Schedules RK-1 andNRK-1 on or before the 15th day of thefourth month following the close of thefiscal year including an extension date offive months after the original due date.If the due date falls on a Saturday,Sunday or business holiday, the entitymust file the PA-20S/PA-65 InformationReturn no later than midnight on the firstbusiness day following the Saturday,Sunday or business holiday. The U.S.Postal Service postmark date on theenvelope is proof of timely filing.If the entity cannot file by the originaldue date, request an extension of timeto file. See Extension of Time To File.If the entity does not file its return bythe original due date or extended duedate and does not pay the tax due bythe original due date, the departmentimposes late filing and underpaymentpenalties.Tax YearsPennsylvania follows the same tax yearas federal rules.Calendar-Year EntityAn entity that files on a calendar yearbasis reports all taxable income recog-nized between Jan. 1 and Dec. 31. SeeWhen To File.Fiscal-Year EntityA fiscal year is a period of 12 consecutivemonths without regard to the calendaryear. The fiscal year is designated bythe calendar year in which it begins. Afiscal-year entity reports all taxableincome recognized during the fiscalyear. See When To File.An entity may use a 52/53 week taxableyear if it keeps its books on that basis.Changing From a Fiscal-Year Entityto a Calendar-Year EntityTo change from a fiscal-year filer to acalendar-year filer, the entity files ashort-year return. See Short-Year Return.The entity then files the next calendaryear on or before April 18, 2016, includ-ing an extension date of Sept, 15, 2016.The entity is also required to submit acopy of its federal election Form 1128,Application to Adopt, Change or Retain aTax Year, with both the short-year returnand the calendar-year return.Short-Year ReturnA short year is an accounting periodshorter than one year and not a 52/53week taxable year.

A short-year return is required for thefollowing reasons:

● Changes in the annual accountingperiod. For example, the entitychanges from a fiscal-year filer to acalendar-year filer; or

● An entity is in existence during onlypart of the tax year. For example, ifthe year is the initial year or finalyear for all entities; or, if the part-nership or an entity formed as alimited liability company classifiedas a partnership for federal incometax purposes sells or exchanges50 percent or more of ownershipinterest (technical termination).

Note. When there has been achange in an accounting period

that requires filing of a short-yearreturn, the nonresident withholding taxis calculated on an annualized basis.

How To File a Short-Year ReturnIf the entity is required to file a short-year return, the entity must use themost recent PA-20S/PA-65 InformationReturn, schedules and forms on thedepartment’s website.

If the tax year on the forms is not thecurrent tax year and/or the tax year forwhich the entity is filing, then the entitymust cross out and write the correct taxyear for which it is filing a short-yearreturn.

Important. Short-year returnsare due on the 15th day of the

fourth month following the end of theshort period.

If the entity is a calendar-year filerand files a short-year return, do

not fill in the fiscal-year oval. A short-yearreturn is not a fiscal-year return.

Technical TerminationA technical termination occurs whenthere is a sale or exchange of 50percent or more of the total interest inthe partnership capital and profits withina 12-month period and the taxable yearof the partnership closes.

The terminating partnership is requiredto file a short-year PA-20S/PA-65Information Return for the taxable yearending with and including the date of itstermination.

The new partnership is required to filea PA-20S/PA-65 Information Return forits taxable year beginning after the dateof termination of the terminated partner-ship. The new partnership retains the

WHEN TO FILE

employer identification number of theterminated partnership and its RevenueID if it is a limited liability company.

When the new partnership files itsPA-20S/PA-65 Information Return, it isrequired to list on the Partner/Member/Shareholder Directory all partners/members/shareholders (owners) involvedwith the entity within the tax year or inthis case, short year.

If the entity cannot file the PA-20S/PA-65Information Return on or before theoriginal return due date, the entity canuse REV-276, Application for Extensionof Time to File, to file for a five-monthextension. The department will nowaccept REV-276 Application for Exten-sion of Time to File the PA20S/ PA65.Information Return through the MeFFed/State e-file program. See How toObtain an Extension of Time to File.

The department will not grant an exten-sion for more than five months, exceptfor taxpayers outside the U.S.

An extension of time to file does notextend the payment deadline. Pay in fullthe amount reasonably estimated asthe entity’s Pennsylvania tax due on orbefore the original return due date.

How To Obtain an Extension ofTime to FileFollow one of these procedures whenapplying for an extension of time to file:1. If the entity owes catch-up nonresi-

dent withholding tax with the PA-20S/PA-65 Information Return, the entitymust pay by check with a timely filedREV-276, Application for Extensionof Time to File, on or before theoriginal return due date. The returndue date is usually April 15 forcalendar-year filers and the 15th dayof the fourth month following theclose of the fiscal year for fiscal-yearfilers. The department will not senda letter granting the extension butit will write if there is a questionconcerning the request.

2. If the entity has an extension oftime to file federal Form 1065 orfederal Form 1120S and does notowe Pennsylvania nonresident with-holding tax on the PA-20S/PA-65Information Return, the departmentwill automatically grant the entity afive-month extension of time to

file the PA-20S/PA-65 InformationReturn. The entity is not required tosubmit REV-276 or federal Form 7004before the original return due date.However, federal Form 7004 mustbe submitted with the filing of thePA-20S/PA-65 Information Return.

3. If a PA S corporation or limited liabilitycompany has an extension of time tofile the RCT-101, PA Corporate TaxReport, the department will automat-ically grant a five-month extensionof time to file the PA-20S/PA-65Information Return. The entity is notrequired to submit REV-276 or federalForm 7004 before the original returndue date. However, federal Form7004 must be submitted with thefiling of the PA-20S/PA-65 Informa-tion Return.

4. If the entity does not have anextension to file federal Form 1065or federal Form 1120S and/or theRCT-101, request an extension onREV-276, and file it in sufficient timefor the department to consider andact upon it prior to the originalreturn due date. The REV-276 canbe filed electronically through theMeF Fed/State program.

Caution. Requesting an extensionof time to file the PA-20S/PA-65

Information Return by filing REV-276Application for Extension of Time to File,does not extend the filing deadline forthe RCT-101 PA Corporate Tax Report.The REV-276 can be filed in paper formor electronically. If the entity filed thePA-20S/ PA-65 Information Return anddid not file the REV-276 but requestedan extension for the federal return,federal Form 7004 can be substitutedfor the REV-276. In such cases, includea copy of the federal Form 7004 withthe PA-20S/PA-65 Information Return.

A five-month extension of time to filerequires PA Schedules RK-1 and NRK-1to be filed one month earlier and allowsowners time to prepare and file theirpersonal income tax returns withinthe normal six-month time period forindividuals.

Qualifying for the ExtensionWhen an entity requests an extensionof time to file, it does not extend thefiling time for its owners. Each ownermust individually obtain an extensionof time to file the PA-40, IndividualIncome Tax Return, PA-41, FiduciaryIncome Tax Return, or PA-40 NRC,Nonresident Consolidated Tax Return.

An extension of time to file a PA-20S/PA-65 Information Return does notextend the time for full payment of thecatch-up nonresident withholding tax,nor does it preclude an assessment ofinterest and penalty for late paymentand underpayment of tax due.

To get the extra time to file you must:1. Properly estimate the current year

nonresident withholding tax liabilityusing the information availableto 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 ormoney order for the current yeartax liability.

Mail REV-276 To:PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESPO BOX 280504HARRISBURG PA 17128-0504

How to File the PA-20S/PA-65Information Return with anExtensionWhen filing a PA-20S/PA-65 InformationReturn for which an extension wasrequested, the entity must:

● Fill in the “Extension Requested”oval at the top of the PA-20S/PA-65Information Return;

● Submit a copy of federal Form 7004with the PA-20S/PA-65 InformationReturn if the entity did not fileREV-276, Application for Extensionof Time to File;

● Submit a statement with the federalconfirmation number received if theentity electronically filed a federalextension and did not file REV-276;

● List the extension payment amounton the statement and be sure toinclude the total nonresident with-holding payments on PA-20S/PA-65Schedule NW, Line B.

Note. Do not submit REV-276,Application for Extension of

Time to File, with the PA-20S/PA-65Information Return.

Extension Due DatesSee When To File.

The entity must submit the PA-20S/PA-65 Information Return, the PA-20S/PA-65 supporting schedules and thePA-20S/PA-65 Schedules RK-1 and/or

EXTENSION OF TIME TO FILE

WHERE TO FILE

9www.revenue.pa.gov


NRK-1, and if applicable, the final with-holding payment or “catch-up” payment.

If the entity did not forward a completecopy of federal Form 1065 or 1120Sincluding the federal Schedules K-1 tothe Bureau of Corporation Taxes withthe RCT-101, PA Corporate Tax Report, itmust submit a complete copy of federalForm 1065 or 1120S, with the federalForm 1065 or 1120S Schedules K-1.

Where the entity should mail the PA-20S/PA-65 Information Return dependswhether there is a final withholdingpayment or “catch-up” payment. Choosethe appropriate mailing address:

Without Payment:PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESPO BOX 280509HARRISBURG PA 17128-0509

With Payment:PA DEPARTMENT OF REVENUEBUREAU OF INDIVIDUAL TAXESPO BOX 280502HARRISBURG PA 17128-0502

See Final Payment of Nonresident With-holding Tax for how and where to sendthe final nonresident withholding taxpayment.

Important. Do not mail thePA-20S/PA-65 Information Return

with the RCT-101, PA Corporate TaxReport.

Final Payment of NonresidentWithholding TaxPayment by CheckIf your tax preparation software printsa Nonresident Withholding Voucherfacsimile approved by the Departmentof Revenue, that voucher may be usedwhen no preprinted voucher (PA-40ES(P/S)) is available. Mail the voucherand check to the department. SeeWhere to File.

In the event the entity does not havea preprinted voucher and your softwareis unable to produce a department-approved facsimile, make the check ormoney order payable to PA Dept. ofRevenue. Write the entity’s federalemployer identification (FEIN) and 2015Final Nonresident Withholding on thecheck or money order. The departmentwill need the entity’s FEIN to accuratelyapply the payment. See Where to File.

Do not staple the check or money orderto the return.

Electronic PaymentSee Fed/State Electronic Filing OptionFor Estimated Nonresident IndividualQuarterly Withholding Payments.

Important. The nonresidentindividual quarterly withholding

tax payment may not be submittedthrough Electronic Funds Transfer (EFT),credit/debit cards or e-TIDES.Mailing Address for Final Withholding PaymentSee Where To File.

RECORDKEEPINGAn entity must retain all books andrecords for at least seven years. Allamounts reported on the PA-20S/PA-65Information Return, schedules and formsare subject to verification and audit bythe department.

Information that substantiates thecalculation of basis for an entity orindividual, in any investment (partner-ship, S corporation, stocks, bonds, realestate, etc.), must be retained indefi-nitely or for at least four years after theinvestment is sold.

Information that substantiates thecalculation of basis in an investmentshall include but not be limited to brokerstatements, Pennsylvania and otherstates’ income tax returns, PA-20S/PA-65Schedules RK-1, closing statements, etc.

Foreign Address StandardsIf the entity is located outside the U.S., itis important to write the foreign addresson the PA-20S/PA-65 InformationReturn, according to U.S. Postal Servicestandards.

Failure to use these standards maydelay processing or correspondencenecessary to complete the processing ofthe return.

To comply with foreign address stan-dards, use the following rules whencompleting the address portion of thePA-20S/PA-65 Information Return.

● Eliminate apostrophes, commas,periods and hyphens. Write theaddress in all uppercase letters.Addresses should have no morethan five lines and must be written

in ink or typewritten. Pencil isunacceptable.

● Write the name of the entity in thespaces provided. Mail may not beaddressed to a person in one coun-try “in care of” a person in anothercountry. The address of items sentto general delivery must indicatethe addressee’s full legal name.

● Write the address in the space pro-vided, including street and buildingname and number, apartment orsuite numbers, city name and cityor provincial codes. All lines of thedelivery address should appear inall capital letters. The house numberand street address or box numbermust appear when mail is addressedto towns or cities.

● Write only the name of the countryin the space provided for the city orpost office.

● Do not include any entries in thestate field other than “OC” forOut-of-Country. The ZIP Codespaces should remain blank on thePA-20S/PA-65. Information Return.Providing the address in this formatwill better ensure that the depart-ment is able to contact the entityif we need additional information.

Below are two examples of properlycompleted foreign addresses:

Foreign Address ExamplesName: DIETRICH ENTERPRISESAddress 1: HARTMANNSTRASSE 7Address 2: 5300 BONN 1City: GERMANYState: OCZIP Code: Leave Blank

ORName: DIETRICH ENTERPRISESAddress 1: 117 RUSSELL DRAddress 2: LONDON W1PGHQCity: ENGLANDState: OCZIP Code: Leave Blank

Canada (Only) Address ExampleThe following address format may beused when the postal address deliveryzone number is included in the address:Name: NORTH BY NORTHWEST COAddress 1: 1010 CLEAR STAddress 2: OTTAWA ONT K1A OB1City: CANADAState: OCZIP Code: Leave Blank

If the entity’s address does not fit in theavailable spaces on the PA-20S/PA-65

HOW TO PAY COMPLETING PA-20S/PA-65

INFORMATION RETURN

Information Return using this format,please include a separate statementwith the return showing the completeaddress.

Note. For a Canadian address,two spaces must exist between

the province abbreviation and the postalcode. Please review the example where“ONT” (province abbreviation) and “K1AOBI (postal code) are separated by twospaces in the address format.

Filing StatusFill in the oval for a PA S corporation(PA-20S) or partnership (PA-65).

P-S KOZFill in the oval if approved for theKeystone Opportunity Zone and includea PA Schedule P-S KOZ – KeystoneOpportunity Zone.

Federal Employer IdentificationNumber (FEIN)Enter the entity’s nine-digit federalemployer identification number.

REVENUE IDEnter the Revenue ID of the PA Scorporation or limited liability company.

The Revenue ID is a unique, 10-digitnumber assigned by the Department ofRevenue to replace the seven-digit TaxAccount ID number. The seven-digit TaxAccount ID number may be used if the10-digit Revenue ID number is notknown. One of these numbers must beprovided.

IMPORTANT: If using the seven-digit Tax Account ID number, left

justify and do not use additional zerosto fill the space. This is not the samenumber as the seven-digit Entity IDissued by the Department of State.

North American Industry Classifi-cation System (NAICS) CodeProvide your six-digit federal NAICScode identified on Page 1 of your federalForm 1120S or 1065.

Inactive OvalFill in the oval if the entity was inactiveduring the 12-month accounting period.The entity would still be required to filethe PA-20S/PA-65 Information Return,but schedules and accompanying docu-mentation do not need to be submitted.

Business NameEnter the complete name of the entityor business.

First Line of AddressEnter the street address. If the addresshas an apartment number, suite or RRnumber, enter after the street address.Eliminate all punctuation such as apos-trophes, commas, periods and hyphens.

Note. If the street address alongwith the apartment number, suite

or RR number does not fit on the firstline of address, then enter the streetaddress on the second line of addressand the apartment number, suite or RRnumber on the first line of address.

The U.S. Postal Service preference is toput the actual delivery address on theline immediately above the city, stateand ZIP code.

Second Line of AddressEnter the post office box, if applicable.If there is no post office box, leave thesecond line of address blank. Eliminateall punctuation such as apostrophes,commas, periods and hyphens.

For a foreign address, enter the city ormunicipal designation. See ForeignAddress Examples.For a Canadian address, enter the cityand postal delivery zone number. SeeCanada (Only) Address Example.

Important. If the address hasonly a post office box, enter on

the first line of address.

City or Post Office, State and ZIP CodeEnter the appropriate information ineach box. Eliminate all punctuationsuch as apostrophes, commas, periodsand hyphens.

For Canadian and foreign addresses,the bottom line of the address shouldshow only the country name, written infull (no abbreviations) and in capitalletters. See Foreign Address Exampleand Canada (Only) Address Example.

Method of AccountingIndicate whether the entity uses theaccrual, cash or other method ofaccounting. If other, please identify yourmethod of accounting on a supplementalstatement.

Income is calculated under the method ofaccounting on which the entity regularlycalculates income in keeping its books.If the department determines that nomethod has been regularly used or themethod used does not clearly reflectincome, the calculation of income shallbe made under a method that clearlyreflects income in the opinion of thedepartment.

Important. If the entity changesits method of accounting, it must

submit a copy of its federal Form 3115,Application for Change in AccountingMethod, with its PA-20S/PA-65 Informa-tion Return.Extension RequestedFill in the oval if the entity requested anextension of time to file the PA-20S/PA-65 Information Return. If the entitydid not file REV-276, Application forExtension of Time to File, submit a copyof federal Form 7004, Application forAutomatic Extension of Time to FileCertain Business Income Tax, Informa-tion, and Other Returns with the PA-20S/PA-65 Information Return. See Extensionof Time To File.

Initial YearIf the entity is in the first year ofoperations, fill in the oval.

Fiscal YearA fiscal year is a 12-month accountingperiod, other than a calendar year, endingon the last day of a particular month,for example July 1 to June 30 of thefollowing year.

The entity must use its federal taxableyear 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(MMDDYY) when the fiscal year beginsand ends.

Note. A fiscal year includes any-thing other than a calendar year.

Do not fill in the fiscal-year ovalfor a calendar-year filer whose

initial year does not begin 01/01/20XXor for a calendar-year filer whose finalreturn does not end 12/31/20XX.

If the entity is a calendar-year filer andfiles a short-year return, do not fill inthe fiscal-year oval.

PAGE 1

TAX IDENTIFICATION NUMBERS

FILL IN THE APPLICABLE OVALS

11www.revenue.pa.gov


Short YearFill in the short-year oval if the entity isfiling a short-year return. Enter themonth, day and year (MMDDYY) whenthe short year begins and ends.

For more information about short-yearreturns, refer to Short-Year Return.

Final ReturnFill in the oval if the PA S corporation orpartnership went out of business duringits taxable year.

FEIN/Name/Address ChangeFill in the oval if the FEIN, name or ad-dress on the PA-20S/PA-65 InformationReturn differs from the last filed return.

Amended Information ReturnFill in the oval if amending the PA-20S/PA-65 Information Return. The entitymust also provide amended PA-20S/PA-65 Schedules RK-1 and NRK-1 to itsowners.

For more information on amended re-turns, see How To Amend PA-20S/PA-65Information Return.

Date Activity BeganIn PennsylvaniaThe entity must include the date activitybegan in Pennsylvania.

If the entity is only filing the PA-20S/PA-65 Information Return because it hasa Pennsylvania resident shareholder orpartner and has no Pennsylvania-sourceincome, then the date activity beganin Pennsylvania would be the datethe shareholder or partner moved toPennsylvania or the date a partnershipor S corporation had a resident partneror shareholder invest in the entity.

Total Taxable Business Income(Loss) from Operations EverywhereIn Part I, report the entity’s income(loss) from all business operations fromall sources within and from outsidePennsylvania.

Taxable Business Income (Loss)from Operations EverywhereEnter the calculation from PA-20S/PA-65Schedule M for the total amount oftaxable income (loss) from its own

separate operation of a business,profession or farm from the books andrecords of the entity.

This is the entity’s total business income(loss) from all of its operations every-where. Do not include income (loss)received as an owner from other entitiesproviding PA-20S/PA-65 Schedules RK-1or federal Schedules K-1 on Line 1a.Report only the income (loss) from anentity’s own operations from all locationsinside Pennsylvania and outside Penn-sylvania. If a negative amount, fill in the“loss” oval.

Share of Business Income (Loss)from All Other EntitiesEnter the share of net profit (loss) thatthe entity receives as a partner orshareholder (owner). Also completethe PA-20S/PA-65 Information Return,Part IX on Page 3. If a negative amount,fill in the “loss” oval.

If the entity completing the PA-20S/PA-65 Information Return received aPA-20S/PA-65 Schedule RK-1 fromanother entity in which it is a shareholderor partner (owner), this PA-20S/PA-65Schedule RK-1 already has the classifiedincome (loss) amount for completingPA-20S/PA-65 Information Return.

On Line 1b, enter the business income(loss) received as an owner from allother entities reported on the PA-20S/PA-65 Schedules RK-1, Line 1.

Total Income (Loss)Add Line 1a and Line 1b. Include losseswhen determining Line 1c. If Line 1c isa negative, fill in the “loss” oval.

Previously Disallowed CorporateNet Income (CNI) DeductionsPA S Corporations OnlyEnter the total amount of previouslydisallowed corporate net income deduc-tions on this line.The department allows any deductionthat it disallowed when the corporationwas subject to Pennsylvania corporatenet income tax as an additional deduc-tion while the corporation is in a PA Scorporation status, except a net losscarry forward deduction.

Pennsylvania limits the additional deduc-tion to the same extent and in the samemanner that the additional deductionwould have been allowed had the corpo-ration remained subject to Pennsylvaniacorporate net income tax.

Any previously disallowed Pennsylvaniacorporate net income deduction shall beseparately determined and must betaken against net profits from a business,profession or farm. Resident sharehold-ers are allowed the full amount of anypreviously disallowed Pennsylvaniacorporate net income deduction.

Nonresident shareholders are allowedonly a previously disallowed Pennsylvaniacorporate net income deduction to theextent that the deduction would havebeen considered a deduction againstincome from sources within Pennsylvaniain the year disallowed.

Submit a separate statement for eachdeduction indicating the basis for eachclaimed deduction and the year in whichthe deduction was disallowed. Use theearliest previously disallowed Pennsyl-vania corporate net income deductionfirst.

Disallowed Accelerated Depreciationon Tax Preference ItemsPennsylvania allows accelerated depre-ciation of tax preference items thatwere disallowed when the corporationwas subject to Pennsylvania corporatenet income tax as an additional deduc-tion, to the extent and amount allowedhad the corporation remained subjectto Pennsylvania corporate net incometax. For further information, referto the department’s regulations in61 Pa. Code §153.14.

Total Adjusted BusinessIncome (Loss)Subtract Line 1d from Line 1c. Includelosses when determining Line 1e. If anegative amount, fill in the “loss” oval.

Apportioned/Allocated PA-TaxableBusiness Income (Loss)In Part II, an entity that has businessoperations within and outside Pennsyl-vania must allocate or apportion itsincome (loss), costs, expenses andliabilities if it has an owner that is:

● A nonresident individual;

LINE INSTRUCTIONS

PAGE 1 - PART I

LINE 1a

LINE 1b

LINE 1c

LINE 1d

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PAGE 1 - PART II

● A resident or nonresident estate ortrust;

● A PA S corporation; or● A partnership

Note. If the entity’s opera-tions are entirely within

Pennsylvania, the amounts in Part Iwill be the same as the amounts inPart II, PA Source Column. Part II,Outside PA Column, will have allzero amounts.When an entity operates a businessthat is neither wholly within norwholly outside Pennsylvania and isrequired to allocate or apportionits income (loss), it allocates byseparate accounting if both of thefollowing conditions are met:

● The business operations within Penn-sylvania and the business operationsoutside Pennsylvania constituteindependent profit centers. Thismeans there are no transfers offinished or partly finished goods,raw materials, supplies, services, oroperational assets interspersed;each center is free to buy outside;and because of geographicallocation, no center is in directcompetition with another; and

● The entity retains its books so thatthe amounts of revenues, costs,and expenses attributable to Penn-sylvania operations can be properlydisclosed.For more information on the appor-tionment and allocation of incomefrom a business carried on partlywithin and partly outside Pennsyl-vania, refer to 61 Pa. Code §109.5.If the entity must apportion income,submit a completed PA-20S/PA-65Schedule H, Apportioning Incomefrom a Business, Profession or Farmderived from sources both withinand outside Pennsylvania. Pleasereview the PA-20S/PA-65 ScheduleH instructions on the department’swebsite.

Note. For reporting income(loss) from another entity on

Lines 1b, 2b and 2f, the Pennsylvaniaentity needs both a PA-20S/PA-65Schedule RK-1 and NRK-1 so it canpass through Pennsylvania-sourceamounts and amounts from sourcesoutside Pennsylvania to its owners.If the other entity is not a PA Scorporation, partnership or entity

formed as a limited liability companythat is classified as a partnership orS corporation for federal income taxpurposes, a supplemental statementmust be provided by the other entitythat shows Pennsylvania-sourceamounts in the same class in whichthe other entity received the income.

Net Business Income (Loss)Outside PA ColumnSubtract Line 2e in Part II from Line 1a inPart I. Enter the difference. If a negativeamount, fill in the “loss” oval.

Share of Business Income (Loss)from Other EntitiesOutside PA ColumnSubtract Line 2f in Part II from Line 1b inPart I. Enter the difference. If a negativeamount, fill in the “loss” oval.

If the entity completing the PA-20S/PA-65 Information Return received aPA-20S/PA-65 Schedule RK-1 and/orNRK-1 from another entity in which it isan owner, it already has the classifiedincome (loss) amount for completingthe PA-20S/PA-65 Information Return.

If the entity completing this PA-20S/PA-65 Information Return received afederal Schedule K-1 from another entity,in which it is an owner, it should requesta PA-20S/PA-65 Schedule RK-1 and/orNRK-1 from the entity because thefederal Schedule K-1 does not classifyincome for Pennsylvania personal incometax purposes.

Previously Disallowed PA-SourceCorporate Net Income DeductionsOutside PA ColumnPA S Corporations OnlySubtract Line 2g in Part II from Line 1din Part I. Enter the difference.

Calculate Adjusted/ApportionedNet Business Income (Loss)Outside PA ColumnAdd Line 2a and Line 2b and thensubtract Line 2c. Enter the difference.Include losses when determining Line

2d. If a negative amount, fill in the“loss” oval.

Net Business Income (Loss)PA-Source ColumnIf the entity has operations inside andoutside of Pennsylvania, enter theapportioned income (loss) from PA-20S/PA-65 Schedule H, Line 7. If the entityonly has operations inside Pennsylvania,enter the allocated income (loss) fromits 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 EntitiesPA-Source ColumnEnter the sum of Line 1 of all the PA-20S/PA-65 Schedules NRK-1 received. If anegative amount, fill in the “loss” oval.

If the entity completing the PA-20S/PA-65 Information Return received aPA-20S/PA-65 Schedule NRK-1 fromanother entity in which it is an owner,this PA-20S/PA-65 Schedule NRK-1already has the classified income (loss)amount for completing PA-20S/PA-65Information Return.

If the entity completing the PA-20S/PA-65 Information Return received afederal Schedule K-1 from another entityin which it is an owner, it should requesta PA-20S/PA-65 Schedule RK-1 and/orNRK-1 from the entity because thefederal Schedule K-1 does not classifyincome for Pennsylvania personal incometax purposes.

Previously Disallowed PA-SourceCorporate Net Income Deductions PA-Source ColumnPA S Corporations OnlyMultiply 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 disallowed.The corporation’s corporate net incomethree-factor apportionment decimal forthe year in which the deduction wasdisallowed may be used. Enter the result.

LINE 2a

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LINE 2c

LINE 2d

LINE 2e

LINE 2f

LINE 2g



Calculate Adjusted/ApportionedNet Business Income (Loss)PA-Source ColumnAdd Line 2e and Line 2f and thensubtract Line 2g. Include losses whendetermining Line 2h. If a negativeamount, fill in the “loss” oval.

Allocated Other PA PIT Income(Loss)In Part III, the entity must allocateall other income (loss) to Pennsylvaniasource and outside Pennsylvania. Ifall owners are full-year nonresidentindividuals, zero amounts must beshown in Part III on Lines 3 and 4.

Interest Income from PA Schedule APA-SourceEnter the amount from PA-20S/PA-65Schedule A, Line 8. This is the totalamount of interest income earned bythe entity.The entity must report on Line 3 anyamount it received for the use of itsmoney that it does not include in anotherincome class. Do not report on Line 3interest from obligations that arestatutorily free from Pennsylvania tax.

Include in Line 1a, not Line 3,interest from assets to generate

working capital and interest used inoperating commercial activities (generallyfrom current assets) when determiningnet profit (loss).

Dividend Income from PA Schedule BPA-SourceEnter the amount from PA-20S/PA-65Schedule B, Line 9.Dividend income is any distribution tothe entity of cash or property from theaccumulated earnings and profits orcurrent 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 dividendincome that the entity used in operatingits commercial activities (generallycurrent assets) when determining itsnet profit (loss).

Net Gain (Loss) from PA Schedule DPA-Source ColumnA PA-20S/PA-65 Schedule D must becompleted for any net gain (loss) income.

These figures represent net gains or netincome, less net losses, derived from thesale, exchange or disposition of propertyincluding real or personal, whethertangible or intangible, as determined inaccepted accounting principles andpractices per 72 P.S. §7303(a)(3).

Net Gain (Loss) from PA Schedule DOutside PA ColumnIf the entity disposed of property locatedoutside Pennsylvania, complete PA-20S/PA-65 Schedule D-III and Schedule D-IV.Enter the amount from PA-20S/PA-65Schedule D-III, Line 16. If a negativeamount, fill in the “loss” oval.

Net Gain (Loss) from PA Schedule DPA-Source ColumnIf the entity disposed of property locatedinside Pennsylvania from information onits books and records complete PA-20S/PA-65 Schedule D-I and Schedule D-II.Enter the amount from PA-20S/PA-65Schedule D-I, Line 16. If a negativeamount, fill in the “loss” oval.

Important. Include the sales,exchanges or dispositions of

inventories and/or stock-in-trade indetermining net business income (loss).

Rent/Royalty Net Income (Loss)from PA Schedule M, Part BNet RentNet rents and royalties from real and tan-gible personal property located in Penn-sylvania are allocable to Pennsylvania.

Net RoyaltiesPatent, copyright and other intangibleroyalties are allocable to Pennsylvaniato the extent that the payer of suchincome uses the patent or copyright inPennsylvania.

A business uses a patent in Pennsylvaniato the extent that it employs the patentin the production, fabrication, manufac-turing, or other processing in Pennsylva-

nia, or to the extent that it produces apatented product in Pennsylvania.A business uses a copyright in Pennsyl-vania to the extent that it prints orotherwise publishes in Pennsylvania.

Rent/Royalty Net Income (Loss)from PA Schedule M, Part BOutside PA ColumnComplete and submit a PA-20S/PA-65Schedule E. The PA-20S/PA-65 Sched-ule E should reflect what is reported onfederal Form 8825, Rental Real EstateIncome and Expenses of a Partnershipor S Corporation.Complete PA-20S/PA-65 Schedule M, PartB to reflect your Pennsylvania adjust-ments. From PA-20S/PA-65 Schedule M,Part B, Section G, enter the differenceof Line 2 minus Line 1. If a negativeamount, fill in the “loss” oval.

Rent/Royalty Net Income (Loss)from PA Schedule M, Part BPA-Source ColumnComplete and submit a PA-20S/PA-65Schedule E. PA-20S/PA-65 Schedule Eshould reflect what is reported on federalForm 8825, Rental Real Estate Incomeand Expenses of a Partnership or SCorporation.Complete PA-20S/PA-65 Schedule M, PartB to reflect your Pennsylvania adjust-ments. 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.

Estates or Trusts from PA Schedule JOutside PA ColumnComplete and submit the PA-20S/PA-65Schedule J. If the entity is a beneficiaryof an estate or trust, enter the total figurefrom the PA-20S/PA-65 Schedule J,Column (d) minus the total figure fromPA-20S/PA-65 Schedule J, Column (c).

Estates or Trusts fromPA-20S/PA-65 Schedule JPA-Source ColumnComplete and submit PA-20S/PA-65Schedule J. If the entity is a beneficiary

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PAGE 1 - PART III

LINE 6a

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LINE 2h

of an estate or trust, enter the total figurefrom the PA-20S/PA-65 Schedule J,Column (c).

Gambling and Lottery Winnings(Loss) from PA Schedule TComplete and submit PA-20S/PA-65Schedule T. The entity must enter anywinnings it realizes from gambling orlotteries other than the PennsylvaniaLottery. It may not deduct any expensesrelated to realizing such income. How-ever, it can offset winnings and losseswithin this income class. Submit withSchedule T a detailed statement/explanation of any amount reported,including information such as the sourceof winnings, specific amounts, etc.

Gambling and Lottery Winnings(Loss) from PA Schedule T OutsidePA ColumnEnter the total figure from the PA-20S/PA-65 Schedule T, Column (b) Line 5minus the total figure from PA-20S/PA-65Schedule T, Column (a) Line 5. If anegative amount, fill in the “loss” oval.

Gambling and Lottery Winnings(Loss) from PA-20S/PA-65Schedule TPA-Source ColumnEnter the total figure from the PA-20S/PA-65 Schedule T, Column (a) Line 5. Ifa negative amount, fill in the “loss” oval.

Total Other PA PIT Income (Loss)PA-Source ColumnIf all owners are full-year residents, acombination of Pennsylvania residentsand nonresidents; or a part-year resi-dent, then Line 9 equals the sum ofLines 3, 4, 5a, 5b, 6a, 6b, 7a, 7b, 8aand 8b. Include losses.If all owners are full-year nonresidentindividuals, then Line 9 equals the sumof Lines 5b, 6b, 7b and 8b. Includelosses. If a negative amount, fill in the“loss” oval.

When determining income (loss)distributable to their owners for

each class of income, the entity doesnot use Line 9 because the income(loss) is reflected in Line 9.

The figure on Line 9 is a sum of totalother income used in calculating accu-mulated adjustments account and thetotal in Part IV.

SummaryBelow are cross references for residentand nonresident partners and share-holders (owners) for Parts I, II, III fromthe PA-20S/PA-65 Information Returnand the line entries on the PA-20S/PA-65Schedule(s) RK-1 or NRK-1.

Resident Partners and Shareholders(Owners)Business IncomePA-20S/PA-65 Schedule RK-1Part I, Line 1e RK-1, Line 1

Interest IncomePA-20S/PA-65 Schedule RK-1Part III, Line 3 RK-1, Line 2

Dividend IncomePA-20S/PA-65 Schedule RK-1Part III, Line 4 RK-1, Line 3

Net Gain (Loss) - Schedule DPA-20S/PA-65 Schedule RK-1Part III, Line 5a+5b RK-1, Line 4

Rent, Royalty, Net IncomePA-20S/PA-65 Schedule RK-1Part III, Line 6a RK-1, Line 5+ 6b

Estates or Trust IncomePA-20S/PA-65 Schedule RK-1Part III, Line 7a+7b RK-1, Line 6

Gambling and Lottery WinningsPA-20S/PA-65 Schedule RK-1Part III, Line 8a RK-1, Line 7+ 8b

Nonresident Partners andShareholders (Owners)Business IncomePA-20S/PA-65 Schedule NRK-1Part II, Line 2h NRK-1, Line 1

Net Gain (Loss) - Schedule DPA-20S/PA-65 Schedule NRK-1Part III, Line 5b NRK-1, Line 2

Rent, Royalty, Net Income (Loss)PA-20S/PA-65 Schedule NRK-1Part III, Line 6b NRK-1, Line 3

Estates or Trust IncomePA-20S/PA-65 Schedule NRK-1Part III, Line 7b NRK-1, Line 4

Gambling and Lottery WinningsPA-20S/PA-65 Schedule NRK-1Part III, Line 8b NRK-1, Line 5

Total PA S Corporation orPartnership Income (Loss)In Part IV, the entity calculates thedifference between its book income(loss) and the income (loss) it reports onthe PA-20S/PA-65 Information Return.The amounts reported to Pennsylvaniadiffer from the federal reportable income(loss).

Total Income (Loss) per Booksand RecordsThe entity uses book income to arriveat this figure. This figure (book income)would not take into account any federalor Pennsylvania tax adjustments. Thisfigure is not Pennsylvania income afteradjustments.

Enter the total entity income (loss) fromits underlying Pennsylvania books andrecords for the taxable year. If a negativeamount, fill in the “loss” oval.

Interest and gains that the entity derivesfrom government obligations, exemptfrom Pennsylvania personal income tax,do not pass through to its owners astaxable.

Conversely, the entity cannot use losseson Pennsylvania personal incometax-exempt obligations to offset taxableincome.

In addition, the entity must include suchincome (loss) on Line 10 as the Pennsyl-vania-exempt income (loss) affects eachowner’s basis. Accordingly, the entitypasses through to each owner its prorata share of the Pennsylvania-exemptincome (loss).

Total Reportable Income (Loss)If the entity has only full-year residentindividual owners or both full-yearresident and nonresident individualowners, add Line 1e and Line 9. If anegative amount, fill in the “loss” oval.

If entity has only full-year nonresidentindividual owners, add Line 2h andLine 9. If a negative amount, fill in the“loss” oval.

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PAGE 2 - PART IV

LINE 8

LINE 10

LINE 11



Total Nontaxable/Non ReportableIncome (Loss)This amount represents the differencebetween book income and Pennsylvania-reportable income (loss). Subtract Line11 from Line 10 (include losses). If anegative amount, fill in the “loss” oval.

Pass Through CreditsIn Part V, the entity is required to identifypass through credits that it reports onthe PA-20S/PA-65 Information Return.

Total Other Credits. SubmitPA 20S/PA-65 Schedule OCEnter amount from Schedule OC, Line17. The entity is required to submit thePA-20S/PA-65 Schedule OC detailing allcredits.

Resident CreditThis figure is based on composite returnsfiled in other states on behalf of theindividual owners. It is an individual taxcredit that is passed through to owners.Submit a copy of the out-of-state returnsfor all resident credits claimed.

Certain PA S corporations are not taxedas S corporations in other states. Reporttaxes paid in those other states onPA-20S/PA-65 Schedule OC, Line 5.

The resident credit for taxes paid toother states or countries is now onlyavailable as a credit for taxes paid to astate of the U.S., the District of Columbia,the Commonwealth of Puerto Rico orany territory or possession of the U.S.The credit for taxes paid to foreigncountries is no longer permitted as acredit against a Pennsylvania PersonalIncome Tax liability.

Pennsylvania 2015 Quarterly TaxWithholding Payments/ExtensionPayment for Nonresident OwnersEnter the amount from PA-20S/PA-65Schedule NW, Line B. The amounton Line 14a will include an extensionpayment (if one was made) as listed andreported on PA-20S/PA-65 Schedule NW,Line B.

Final Payment of NonresidentWithholding TaxEnter the amount from PA-20S/PA-65Schedule NW, Line D. See How To Pay.

Total Pennsylvania Income TaxWithheldAdd Line 14a and Line 14b. Enter thetotal here.International ACH TransactionsThe Federal Office of Foreign AssetsControl has imposed additional reportingrequirements on all electronic bankingtransactions that directly involve a finan-cial institution outside of the territorialjurisdiction of the U.S. These transac-tions are called international ACH trans-actions (IAT). Presently, the PennsylvaniaDepartment of Revenue does not supportIAT debit transactions. Taxpayers whoinstruct the department to processelectronic banking transactions on theirbehalf are certifying that the transactionsdo not directly involve a financial institu-tion outside of the territorial jurisdictionof the U.S. at any point in the process.

Distributions for PartnershipsOn Lines 15 through 18, list all distribu-tions and guaranteed payments madeto partners during the taxable year.

Distributions of Cash, MarketableSecurities, and Property (Do notinclude guaranteed payments.)Distributions that the partnership makesthat represent cash, marketable securi-ties, and other property that are notguaranteed payments may representPennsylvania-taxable income to theextent the distributions exceed theresident partner’s outside basis.Non-liquidating Distributions fromPartnership to PartnerWith respect to non-liquidating distribu-tions from a partnership to a residentpartner, the partner’s adjusted basis inits partnership interest is decreased tothe extent of the partnership’s Pennsyl-vania personal income tax adjusted basisin the property distributed to the partner.In non-liquidating distributions, aresident partner will recognize taxable

income to the extent that the partner-ship’s adjusted basis in the propertydistributed exceeds the resident partner’sadjusted basis in its partnership interest.Although not taxable to a nonresidentpartner, the nonresident partner reduceshis or her economic investment by thepartnership’s adjusted basis in theproperty distributed.Liquidating Distributions fromPartnership to PartnerWith respect to liquidating distributionsfrom a partnership to a resident partner,the partner’s adjusted basis in its part-nership interest is decreased to theextent of the fair market value of theproperty distributed to the partner.In liquidating distributions, a residentpartner will recognize taxable gain onPA-40 Schedule D to the extent that thefair market value of the property distrib-uted exceeds the resident partner’sadjusted basis in its partnership interest.

Guaranteed Payments for Capitalor Other ServicesEnter the total guaranteed payments forcapital or other services made to thepartners.Pennsylvania personal income tax lawcharacterizes such distributions as:

● A withdrawal proportionately fromthe capital of all partners;

● A gain from the disposition of therecipient’s partnership interest anda loss from the disposition of theother partners’ partnership interests,to the extent derived from thecapital of the other partners; and

● A return of capital by the residentrecipients to the extent derivedfrom their own capital. The distri-butions that the partnership makesthat represent repayments of thepartner’s own capital are notincome for Pennsylvania personalincome tax purposes.

Important. Pennsylvaniapersonal income tax law does

not allow a deduction for guaran-teed payments for capital or if serv-ices have not been rendered.

All Other Guaranteed Payments forServices RenderedEnter the total guaranteed paymentsto partners to the extent that the part-

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PAGE 2 - PART V

LINE 16

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LINE 12

nership makes guaranteed paymentsfor services rendered directly in theproduction of income for a Pennsylvaniaincome class.

The partnership characterizes guaranteedpayments to partners in the followingmanner:

● To the extent paid for servicesrendered directly in the productionof income from a business, profes-sion, or farm, the guaranteedpayments are gross income fromthat income class; and

● To the extent paid for servicesrendered directly in the productionof rental or royalty income, theguaranteed payments are grossincome from that income class.

If guaranteed payments havebeen deducted in calculating

business income, include thesepayments on Line 17.

Guaranteed Payments to RetiredPartnersGuaranteed payments to retired partnersare not taxable if the exception asstated in IRC §1402(a) (10) is met.Only nontaxable amounts should bereported on Line 18. For further detail,refer to the Pennsylvania PersonalIncome Tax Guide, Chapter 16.

Important. Pennsylvania doesnot allow a deduction for guaran-

teed payments for the use of capital, orif services have not been rendered. Eachrecipient partner reports its classifiedincome (loss) in each class by adding itsguaranteed payments to the amounts intheir PA-20S/PA-65 Schedule(s) RK-1and/or NRK-1, Part IV.

Distributions from PA AccumulatedAdjustments AccountGenerally, distributions from the Pennsyl-vania accumulated adjustments account(AAA) are not taxable to the extent ofthe resident shareholder’s basis. Theresident shareholder will recognizetaxable income to the extent that thePennsylvania AAA distribution exceedsthe shareholder’s basis in its stock.

Distributions for PA S CorporationsOn Lines 19 and 20, list all distributionsmade to shareholders during the taxableyear.

A distribution that a PA S corporationmakes from its Pennsylvania accumu-lated earnings and profits before becom-ing a PA S corporation is dividend incometo its resident shareholders. Otherdistributions can represent a non-taxablereturn of the resident shareholders’stock basis.Nontaxable return of basis distributionwill reduce each resident shareholder’sbasis in the stock first. If the non-tax-able return of distribution exceeds theshareholder’s basis in its stock holdings,the shareholder can apply the excessagainst the basis of any indebtednessof the PA S corporation to that share-holder. If the distribution exceeds theshareholder’s basis in the stock and thePA S corporation’s indebtedness, theresident shareholder must report a gainfrom the disposition of property.If the PA S corporation distributesappreciated property, it must treat thedistribution as if it sold the property tothe shareholders at fair market value.Such a distribution will produce a gainfrom the sale of property that the PA Scorporation will have to report as netgain (loss) from the sale, exchange ordisposition of property.Although not taxable to a nonresidentshareholder, the nonresident shareholderreduces its economic investment bythe fair market value of the propertydistributed.A nonresident cannot deduct losses inexcess of its economic investment inthe PA S corporation.

Important. When distributionsare determined from all income

sources and the shareholders are onlyfull-year nonresident individual owners,the Pennsylvania AAA distribution shouldbe factored by the PA-20S/PA-65Schedule H percentage to preventpremature depletion of the PennsylvaniaAAA balance, which may trigger apossible tax event.

Distributions of Cash, MarketableSecurities, and PropertyDistributions by the PA S corporationfrom its C corporation earnings andprofits are Pennsylvania-taxable divi-dends. Include such Pennsylvania-taxable dividends on each shareholder’sPA-20S/PA-65 Schedule RK-1, Line 3.

Distributions of cash, marketablesecurities and property (other than

dividends) in excess of the shareholder’sPennsylvania AAA are considered atax-free return of investment to theextent of the resident shareholder’s basisin its stock. The resident shareholderwill recognize taxable income to theextent that the fair market value ofsuch distribution exceeds the residentshareholder’s basis in its stock.

Although not taxable to a nonresidentshareholder, the nonresident shareholderreduces its economic investment bythe fair market value of the propertydistributed.

Other InformationThis section asks a series of questionssimilar to federal Schedule B. The ques-tions should be answered with a “Yes”or “No.” If the entity answered “Yes”,supplemental statements must besubmitted.

The entity must answer “Yes” to Question1 if during the tax year:

● It owned an interest in anotherpartnership, foreign (located outsidethe U.S.) or domestic; or

● It was the tax owner of a foreignentity, located outside the U.S. thatwas disregarded as an entity sepa-rate from its owner under federalTreasury Regulations §301.7701-2and 301.7701-3. The tax owner ofa foreign entity located outside theU.S. that was disregarded as anentity is treated as owning theassets and liabilities of the foreigndisregarded entity located outsidethe U.S. for purposes of U.S. incometax law.The statement must show eachentity’s name, federal employeridentification number (if any), andthe country under whose laws theentity was organized if the entitydirectly or indirectly owned at leasta 10 percent interest in any otherforeign (located outside the U.S.)or domestic partnership.

The entity must answer “Yes” if there areany tax-exempt partners/members/shareholders and select tax-exempt asthe owner type on the PA-20S/PA-65Schedule RK-1 and/or NRK-1.

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PAGE 2 - PART VII

LINE 1

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The entity must answer “Yes” and submita statement indicating entity andforeign location if the partnership, Scorporation or limited liability companyclassified as a partnership or PA Scorporation had any owners locatedoutside the U.S. at any time during thetax year.

The entity must answer “Yes” if therewas a distribution of property or atransfer (e.g., by sale or death) of apartner/member interest during the taxyear (partnership only). If the entityanswered yes, submit a statementindicating the disposing partner, theacquiring partner and the amount paidfor the interest.

The entity must answer “Yes” if thefederal government changed taxableincome as originally reported for any priortax year for which amended returns havenot been filed in Pennsylvania. If theentity answered “Yes”, submit a state-ment indicating tax year and include acopy of the Revenue Agent’s Report.

If required, the entity must file anamended return within 30 days of theadjustment.

The entity must answer “Yes” if either1 or 2 of the following apply to thepartnership:1. At any time during the tax year,

the entity had signature or otherauthority over a bank account,securities account, or other financialaccount in a foreign country (outsidethe U.S.); and● The combined value of the

accounts was more than $10,000at any time during the calendaryear; and

● The accounts were not with aU.S. financial institution.

2. The entity owns more than 50percent of any partnership or 50percent of the stock in any corpora-tion that would answer the question“Yes” based on item 1 above.

If the entity answered yes:● Submit a statement with the name

of the foreign country/ countries;and

● Submit a copy of federal FinCENForm 114 that was filed with theDepartment of the Treasury.

The entity must answer “Yes” if it isinvolved in a reportable transaction,listed transaction, or registered taxshelter within this return.

Federal Form 8886, Reportable Transac-tion Disclosure Statement, must besubmitted with any return on which adeduction, loss, credit or any other taxbenefit is claimed or is reported; or anyincome the partnership reported froman interest in a registration-required taxshelter. If the partnership is required tofile this form with the federal return,submit a copy with the partnership’sPA-20S/PA-65 Information Return.

A reportable transaction is any transac-tion as defined in Treasury Regulation1.6011-4 and includes, but is notlimited to:

● A confidential transaction, which isoffered to an entity under conditionsof confidentiality and for which theentity has paid a minimum fee;

● A transaction with contractual pro-tections, which provides the entitywith the right to a full or partialrefund of fees if all or part of theintended tax consequences fromthe transaction are not sustained;

● A loss transaction under IRC §165,which is at least $10 million in anyone year or $20 million in anycombination of tax years;

● A transaction with a significantbook-tax difference; and

● A transaction where the entity isclaiming a tax credit of greater than$250,000 and held the asset forless than 45 days.A listed transaction is a specificreportable transaction, or one thatis substantially similar, which hasbeen identified by the IRS to be atax avoidance transaction.A registered tax shelter is anyinvestment that must be registeredwith the Internal Revenue Serviceunder IRC §6111.

The entity must answer “Yes” if theentity filing as a partnership has otherpartnerships as partners.

The entity must answer “Yes” if taxcredits were sold.

If the entity answered “Yes”, submit astatement identifying the buyer, theSocial Security number or federalemployer identification number, thetype and amount of credit sold and thesales price.

The entity must answer “Yes” if itchanged its method of accounting forfederal income tax purposes during thistax year.

Pennsylvania does not allow the four-year spread of the effect in accountingmethod change under IRC §481. Theeffect of the change must be recognizedentirely in the year of the change.

The entity must answer “Yes” if it enteredinto any like-kind exchanges underIRC §1031 for the current tax year.

If the entity answered “Yes”, submitfederal Form 8824.

If Section 179 properties are involvedsubmit the information provided to theowners on their federal Schedules K-1.

Enter the Pennsylvania-apportionmentdecimal from PA-20S/PA-65 ScheduleH-Corp used for calculating CNI tax. Ifusing special apportionment, enter thatdecimal here.

Accumulated Adjustments Accountand Accumulated Earnings andProfitsPA S Corporations OnlyThe Pennsylvania accumulated adjust-ments account (AAA) should not equalthe federal AAA, because PennsylvaniaAAA is based on Pennsylvania taxprinciples; however, Pennsylvaniaparallels certain federal calculation rules

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PAGE 3 - PART VIII

in arriving at Pennsylvania AAA, such asthe following:

● The Pennsylvania AAA is based uponthe Pennsylvania personal incometax income (loss) and distributions.

● The PA S corporation’s AAA reflectsonly the income (loss) and distribu-tion from the inception of theelection of PA S corporation status.

● The PA S corporation does not makean adjustment for any income (loss)that is not enumerated in Pennsyl-vania personal income tax law orany non-deductible Pennsylvaniapersonal income tax expense.

Example. For Pennsylvania personalincome tax purposes, tax-exemptincome is not added to income subjectto Pennsylvania personal income tax.

Important. The AE&P column isfor former C corporations only. If

an entity has been an S corporationfrom inception, this column will alwaysbe zero.

Balance at the Beginning of theTaxable YearFor the corporation’s first tax year as aPA S corporation, enter zero. In subse-quent years, enter the ending balancefrom the prior year’s account. If anegative amount, fill in the “loss” oval.

Note. If an S corporation had noprior earnings in Pennsylvania, the

beginning AAA would be zero.

Total Reportable Income fromPart IV, Line 11Enter the total Pennsylvania-reportableincome from the PA-20S/PA-65 Infor-mation Return, Part IV, Line 11.

Do not enter a loss from Part IV, Line 11on this line.

Other Additions - Submit anItemized StatementEnter other additions to the PennsylvaniaAAA. Do not enter non-taxable income.Submit an itemized statement of theadditions reported on this line.

Example. If an S corporation acquiredanother S corporation, the AAA in theacquired S corporation would be included

in this line. The itemized statement mustinclude the name(s) of the S corporationpurchased and federal employer identi-fication number(s).

Loss from Part IV, Line 11Enter the loss from Part IV, Line 11 ofthe PA-20S/PA-65 Information Return.

Other Reductions - Submit anItemized StatementEnter other reductions to the Pennsyl-vania AAA. Do not enter Pennsylvanianon-deductible expenses associated withnon-taxable income. Submit an itemizedstatement of the reductions reported onthis line.

Example. If an S corporation acquiredanother S corporation, the negativeAAA in the acquired S corporation wouldbe included in this line. The itemizedstatement must include the name(s) ofthe S corporation purchased and federalemployer identification number(s).

Sum of Lines 1 through 5Enter the sum of Line 1 through Line 5. Ifa negative amount, fill in the “loss” oval.

DistributionsEnter all distributions other than dividenddistributions. Dividend distributions arenot part of the Pennsylvania AAA.

Important. When distributionsare determined from all income

sources and the shareholders are onlyfull-year nonresident individual owners,the Pennsylvania AAA distribution shouldbe factored by the PA-20S/PA-65 Sched-ule H percentage to prevent prematuredepletion of the Pennsylvania AAAbalance, which may trigger a possibletax event.

Balance at Taxable Year-EndSubtract Line 7 from Line 6. Enter thetotal. If a negative amount, fill in the“loss” oval.

If a PA S corporation reverts to being acorporation subject to corporate net

income tax, it may distribute the balanceof its Pennsylvania AAA to shareholdersas a non-taxable return of capital to theextent of basis. Such distributions, how-ever, will reduce the shareholder’s basisin the C corporation.

If the distributions exceed the residentshareholder’s basis in the stock of theformer PA S corporation, the sharehold-ers must report the distributions astaxable gains on the sale, exchange ordisposition of property to the extent ofPennsylvania AAA.

Ownership in Pass Through EntitiesIf the entity received income (loss) froman S corporation, partnership, estate ortrust, limited liability company or anyother pass through entity including aqualified subchapter S subsidiary (QSSS),list the federal employer identificationnumber and name and address of eachentity.

If the income (loss) is from a qualifiedsubchapter S subsidiary, enter “yes” inthe qualified subchapter S subsidiarybox.

The entity filing the PA-20S/PA-65Information Return would list in Part IXall entities in which it is a shareholder,member, partner or beneficiary.

An S corporation can be a member,partner or beneficiary in a limited liabilitycompany, partnership, estate or trust,respectively. An S corporation cannot ownanother S corporation unless the othercorporation is a qualified subchapter Ssubsidiary.

A partnership can be a member, partneror beneficiary in a limited liabilitycompany, partnership, estate or trust,respectively. A partnership cannot be ashareholder in an S corporation.

The entities listed in Part IX provide aSchedule RK-1 and NRK-1 to the entityfiling the PA-20S/PA-65 InformationReturn. However, a qualified subchapterS subsidiary does not issue a PASchedule K-1.

The entity must report the income fromPA Schedules RK-1 and NRK-1 in thesame class of income on the PA-20S/PA-65 Information Return.

The entity reports pass through businessincome from PA Schedules RK-1 andNRK-1 on the PA-20S/PA-65 InformationReturn, Parts I and II.

LINE 1

LINE 2

LINE 3

LINE 4

LINE 5

LINE 6

LINE 7

LINE 8

PAGE 3 - PART IX



Income from PA-20S/PA-65 ScheduleRK-1 less the amount reported onPA-20S/PA-65 Schedule NRK-1 isreported in the Outside PA column andincome from PA-20S/PA-65 ScheduleNRK-1 is reported in the PA Sourcecolumn on the PA-20S/PA-65 InformationReturn.

Note. If additional space isneeded, submit on a separate

statement. Do not submit additionalcopies of Page 3 from the PA-20S/PA-65Information Return.

Paper-Filed ReturnsGeneral Partner, Principal Officeror Authorized Individual Signatureand NameThe PA-20S/PA-65 Information Returnmust be signed and dated.

The entity has not filed a valid PA-20S/PA-65 Information Return unless it isproperly signed. The individual signingthe return must be a general partner,principal officer or individual expresslyauthorized to sign.

The PA S corporation or partnershipofficial signing the return verifies bywritten declaration, under penalties ofperjury, that he or she personally hasexamined the PA-20S/PA-65 Informa-tion Return and its accompanyingschedules and to the best of his or herknowledge, PA-20S/PA-65 InformationReturn is true, correct and complete.

The PA S corporation or partnershipofficial that is responsible for signingthe PA-20S/PA-65 Information Returnmust sign it by hand; signature stampsor labels are not acceptable, and includehis or her title, date and daytime phonenumber.

The responsible official must submit allrequired schedules with the PA-20S/PA-65 Information Return, includingthe PA-20S/PA-65 Schedules RK-1 andNRK-1 for each owner.

Preparer’s Signature and NameA paid preparer may sign original oramended returns by rubber stamp,mechanical device, or computer softwareprogram. Pennsylvania follows federal

guidelines for signature requirementsfor the preparer.

If a partner, shareholder or employee ofthe entity completes the PA-20S/PA-65Information Return, the paid preparer’sspace should remain blank. In additionanyone who prepares the PA-20S/PA-65Information Return but does not chargethe entity should not complete the paidpreparer section.

Anyone who prepares a PA-20S/PA-65Information Return for a fee or incidentto the performance of services for whichthe preparer charges a fee, e.g., anattorney provides legal services for a feeand includes for free, the preparationof the PA-20S/PA-65 Information Return,must complete the required paidpreparer information listed below:

● Print or type the paid preparer’sname in the space provided.

● Sign the return in the space providedfor the paid preparer’s signature.

● Fill in the other areas in the “PaidPreparer Use Only” section.

● Print or type the paid preparer’scompany or corporation name andfederal employer identificationnumber, if applicable.

● Print or type the paid preparer’sPreparer Tax Identification Number(PTIN). If you are a paid preparer,you must use a PTIN issued by theInternal Revenue Service (IRS) toidentify yourself in the paid preparersection of the tax return.

● Give a copy of the return to thetaxpayer.If someone prepares the return atno charge, the paid preparer’s areaneed not be completed.

Electronically Filed ReturnsAn electronic return must be signed bya general partner, principal officer orauthorized individual.

An electronic return must also be signedby the paid preparer, if applicable.

Two signature options are available:1. PA-8879-P, Pennsylvania e-File

Signature Authorization for PA SCorporation/Partnership InformationReturn (PA-20S/PA-65) – Directoryof Corporate Partners (PA-65 Corp);or

2. PA-8453-P, PA S Corporation/Partnership Information Return(PA-20S/ PA-65) – Directory ofCorporate Partners (PA-65 Corp) TaxDeclaration for a State e-File Return.

PA-8879-P FormThe federal self-select PIN option consistsof two PINs, one for the taxpayer andone for the practitioner.

In order for the department to acceptthe federal self-select PIN as a signa-ture, software developers must display ajurat/disclosure statement (similar to thelanguage on the PA-8453-P and meetingthe requirements of 72 P.S. §7333and 61 Pa. Code §121.23) attached asPage 3 to PA-8879-P.

Taxpayers and Electronic Return Origi-nators (ERO) must complete PA-8879-Pwhen using this method and consentingto electronic funds withdrawals.

The department requires the ERO toretain completed PA-8879-P forms forthree years after the due dates of thereturns or the dates the returns werefiled electronically, whichever is later. Donot mail these forms to the department.

PA-8453-P FormIf a taxpayer elects not to use the federalself-select PIN option or if the statesubmission is filed as a state stand-alone (no link to an original federalsubmission), the department requiresthe ERO to retain completed PA-8453-Pforms for three years after date thereturns were filed electronically:

Do not mail these forms to the depart-ment. PA-8453-P must be completed andsigned by all appropriate parties beforethe return is transmitted electronically.

In the event the department selectsan electronic return for examination,the ERO may be required to provide thePA-8879-P form and, if appropriate,the PA-8453-P form within five businessdays of the request. A percentage ofthese forms will be randomly requestedyearly for monitoring compliance.

E-File Opt-Out OvalMandatory e-filing is now required forthird party practitioners who prepare 11or more PA-20S/PA-65 returns. Entitiesthat prefer their preparers to completea paper return should fill in the opt-oute-filing oval.

PAGE 3 - PART X

WHO MUST SIGN

Documents

Pennsylvania Department of Revenue 2015 Instructions for