§ 44-11-2.2 Pass-Through Entities –Definitions – Withholding – Returns. – (1) "Pass-through entity" means a corporation that for the applicable tax yearis treated as an S Corporation under IRC § 1362(a) [26 U.S.C. §1362(a)], and a general partnership, limited partnership, limitedliability partnership, trust, or limited liability company that for theapplicable tax year is not taxed as a corporation for federal tax purposesunder the state's check-the-box regulation.
(2) "Member" means an individual who is a shareholder of an Scorporation; a partner in a general partnership, a limited partnership, or alimited liability partnership; a member of a limited liability company; or abeneficiary of a trust;
(3) "Nonresident" means an individual who is not a residentof or domiciled in the state, a business entity that does not have itscommercial domicile in the state, and a trust not organized in the state.
(1) A pass-through entity shall withhold income tax at thehighest Rhode Island withholding tax rate provided for individuals or ninepercent (9%) for corporations on the member's share of income of the entitywhich is derived from or attributable to sources within this state distributedto each nonresident member and pay the withheld amount in the manner prescribedby the tax administrator. The pass-through entity shall be liable for thepayment of the tax required to be withheld under this section and shall not beliable to such member for the amount withheld and paid over in compliance withthis section. A member of a pass-through entity that is itself a pass-throughentity (a "lower-tier pass-through entity") shall be subject to this samerequirement to withhold and pay over income tax on the share of incomedistributed by the lower-tier pass-through entity to each of its nonresidentmembers. The tax administrator shall apply tax withheld and paid over by apass-through entity on distributions to a lower-tier pass-through entity to thewithholding required of that lower-tier pass-through entity.
(2) A pass-through entity shall, at the time of payment madepursuant to this section, deliver to the tax administrator a return upon a formprescribed by the tax administrator showing the total amounts paid or creditedto its nonresident members, the amount withheld in accordance with thissection, and any other information the tax administrator may require. Apass-through entity shall furnish to its nonresident member annually, but notlater than the fifteenth day of the third month after the end of its taxableyear, a record of the amount of tax withheld on behalf of such member on a formprescribed by the tax administrator.
(c) Notwithstanding subsection (b), a pass-through entity isnot required to withhold tax for a nonresident member if:
(1) The member has a pro rata or distributive share of incomeof the pass-through entity from doing business in, or deriving income fromsources within, this State of less than $1,000 per annual accounting period;
(2) The tax administrator has determined by regulation,ruling or instruction that the member's income is not subject to withholding; or
(3) The member elects to have the tax due paid as part of acomposite return filed by the pass-through entity under subsection (d); or
(4) The entity is a publicly traded partnership as defined bySection 7704(b) of the Internal Revenue Code (26 U.S.C. § 7704(b)) that istreated as a partnership for the purposes of the Internal Revenue Code and thathas agreed to file an annual information return reporting the name, address,taxpayer identification number and other information requested by the taxadministrator of each unitholder with an income in the state in excess of $500.
(1) A pass-through entity may file a composite income taxreturn on behalf of electing nonresident members reporting and paying incometax at the state's highest marginal rate on the members' pro rata ordistributive shares of income of the pass-through entity from doing businessin, or deriving income from sources within, this State.
(2) A nonresident member whose only source of income within astate is from one or more pass-through entities may elect to be included in acomposite return filed pursuant to this section.
(3) A nonresident member that has been included in acomposite return may file an individual income tax return and shall receivecredit for tax paid on the member's behalf by the pass-through entity.
§ 44-11-2.2 Pass-Through Entities –Definitions – Withholding – Returns. – (1) "Pass-through entity" means a corporation that for the applicable tax yearis treated as an S Corporation under IRC § 1362(a) [26 U.S.C. §1362(a)], and a general partnership, limited partnership, limitedliability partnership, trust, or limited liability company that for theapplicable tax year is not taxed as a corporation for federal tax purposesunder the state's check-the-box regulation.
(2) "Member" means an individual who is a shareholder of an Scorporation; a partner in a general partnership, a limited partnership, or alimited liability partnership; a member of a limited liability company; or abeneficiary of a trust;
(3) "Nonresident" means an individual who is not a residentof or domiciled in the state, a business entity that does not have itscommercial domicile in the state, and a trust not organized in the state.
(1) A pass-through entity shall withhold income tax at thehighest Rhode Island withholding tax rate provided for individuals or ninepercent (9%) for corporations on the member's share of income of the entitywhich is derived from or attributable to sources within this state distributedto each nonresident member and pay the withheld amount in the manner prescribedby the tax administrator. The pass-through entity shall be liable for thepayment of the tax required to be withheld under this section and shall not beliable to such member for the amount withheld and paid over in compliance withthis section. A member of a pass-through entity that is itself a pass-throughentity (a "lower-tier pass-through entity") shall be subject to this samerequirement to withhold and pay over income tax on the share of incomedistributed by the lower-tier pass-through entity to each of its nonresidentmembers. The tax administrator shall apply tax withheld and paid over by apass-through entity on distributions to a lower-tier pass-through entity to thewithholding required of that lower-tier pass-through entity.
(2) A pass-through entity shall, at the time of payment madepursuant to this section, deliver to the tax administrator a return upon a formprescribed by the tax administrator showing the total amounts paid or creditedto its nonresident members, the amount withheld in accordance with thissection, and any other information the tax administrator may require. Apass-through entity shall furnish to its nonresident member annually, but notlater than the fifteenth day of the third month after the end of its taxableyear, a record of the amount of tax withheld on behalf of such member on a formprescribed by the tax administrator.
(c) Notwithstanding subsection (b), a pass-through entity isnot required to withhold tax for a nonresident member if:
(1) The member has a pro rata or distributive share of incomeof the pass-through entity from doing business in, or deriving income fromsources within, this State of less than $1,000 per annual accounting period;
(2) The tax administrator has determined by regulation,ruling or instruction that the member's income is not subject to withholding; or
(3) The member elects to have the tax due paid as part of acomposite return filed by the pass-through entity under subsection (d); or
(4) The entity is a publicly traded partnership as defined bySection 7704(b) of the Internal Revenue Code (26 U.S.C. § 7704(b)) that istreated as a partnership for the purposes of the Internal Revenue Code and thathas agreed to file an annual information return reporting the name, address,taxpayer identification number and other information requested by the taxadministrator of each unitholder with an income in the state in excess of $500.
(1) A pass-through entity may file a composite income taxreturn on behalf of electing nonresident members reporting and paying incometax at the state's highest marginal rate on the members' pro rata ordistributive shares of income of the pass-through entity from doing businessin, or deriving income from sources within, this State.
(2) A nonresident member whose only source of income within astate is from one or more pass-through entities may elect to be included in acomposite return filed pursuant to this section.
(3) A nonresident member that has been included in acomposite return may file an individual income tax return and shall receivecredit for tax paid on the member's behalf by the pass-through entity.
§ 44-11-2.2 Pass-Through Entities –Definitions – Withholding – Returns. – (1) "Pass-through entity" means a corporation that for the applicable tax yearis treated as an S Corporation under IRC § 1362(a) [26 U.S.C. §1362(a)], and a general partnership, limited partnership, limitedliability partnership, trust, or limited liability company that for theapplicable tax year is not taxed as a corporation for federal tax purposesunder the state's check-the-box regulation.
(2) "Member" means an individual who is a shareholder of an Scorporation; a partner in a general partnership, a limited partnership, or alimited liability partnership; a member of a limited liability company; or abeneficiary of a trust;
(3) "Nonresident" means an individual who is not a residentof or domiciled in the state, a business entity that does not have itscommercial domicile in the state, and a trust not organized in the state.
(1) A pass-through entity shall withhold income tax at thehighest Rhode Island withholding tax rate provided for individuals or ninepercent (9%) for corporations on the member's share of income of the entitywhich is derived from or attributable to sources within this state distributedto each nonresident member and pay the withheld amount in the manner prescribedby the tax administrator. The pass-through entity shall be liable for thepayment of the tax required to be withheld under this section and shall not beliable to such member for the amount withheld and paid over in compliance withthis section. A member of a pass-through entity that is itself a pass-throughentity (a "lower-tier pass-through entity") shall be subject to this samerequirement to withhold and pay over income tax on the share of incomedistributed by the lower-tier pass-through entity to each of its nonresidentmembers. The tax administrator shall apply tax withheld and paid over by apass-through entity on distributions to a lower-tier pass-through entity to thewithholding required of that lower-tier pass-through entity.
(2) A pass-through entity shall, at the time of payment madepursuant to this section, deliver to the tax administrator a return upon a formprescribed by the tax administrator showing the total amounts paid or creditedto its nonresident members, the amount withheld in accordance with thissection, and any other information the tax administrator may require. Apass-through entity shall furnish to its nonresident member annually, but notlater than the fifteenth day of the third month after the end of its taxableyear, a record of the amount of tax withheld on behalf of such member on a formprescribed by the tax administrator.
(c) Notwithstanding subsection (b), a pass-through entity isnot required to withhold tax for a nonresident member if:
(1) The member has a pro rata or distributive share of incomeof the pass-through entity from doing business in, or deriving income fromsources within, this State of less than $1,000 per annual accounting period;
(2) The tax administrator has determined by regulation,ruling or instruction that the member's income is not subject to withholding; or
(3) The member elects to have the tax due paid as part of acomposite return filed by the pass-through entity under subsection (d); or
(4) The entity is a publicly traded partnership as defined bySection 7704(b) of the Internal Revenue Code (26 U.S.C. § 7704(b)) that istreated as a partnership for the purposes of the Internal Revenue Code and thathas agreed to file an annual information return reporting the name, address,taxpayer identification number and other information requested by the taxadministrator of each unitholder with an income in the state in excess of $500.
(1) A pass-through entity may file a composite income taxreturn on behalf of electing nonresident members reporting and paying incometax at the state's highest marginal rate on the members' pro rata ordistributive shares of income of the pass-through entity from doing businessin, or deriving income from sources within, this State.
(2) A nonresident member whose only source of income within astate is from one or more pass-through entities may elect to be included in acomposite return filed pursuant to this section.
(3) A nonresident member that has been included in acomposite return may file an individual income tax return and shall receivecredit for tax paid on the member's behalf by the pass-through entity.
