Pennsylvania PA Schedule CP - Corporate Partner Withholding

PA Schedule CP - Corporate Partner Withholding
2023 PA Schedule CP - Corporate Partner CNI Withholding (PA-20S/PA-65 CP)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING
2308210059

PA SCHEDULE CP
Corporate Partner
CNI Withholding

PA-20S/PA-65 CP (DR) 04-23 (FI)
PA Department of Revenue

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2023

SECTION I General Information for Corporate Partner
Name of Corporation

Corporate Partner FEIN

First Line of Address

9 DIGIT - NO DASH

Corporate Partner’s percentage of:
Profit sharing
Loss sharing
Ownership of capital

Second Line of Address
City or Post Office

State

ZIP Code

%
%
%

Enter the date the corporation
became a partner (MMDDYYYY)
MM/DD/YYYY

SECTION II General Information for the Partnership that withholds and remits Corporate Net Income Tax for Nonfiling Corporate Partners
Name of Partnership issuing this form

Partnership FEIN

9 DIGIT - NO DASH

Address
City or Post Office

State

ZIP Code

Enter the date the partnership began
MM/DD/YYYY
doing business in PA (MMDDYYYY)

SECTION III Income or Loss and Deductions for Corporate Partner from Federal Schedule K-1
1

Ordinary income or loss from trade or business activities

LOSS

1

$

2

$

3

$

LOSS

2

Net income or loss from rental real estate activities
LOSS

3

Net income or loss from other rental activities

4

Guaranteed payments

4

$

5

Interest income

5

$

6

Ordinary dividends

6

$

7

$

8

$

9

$

10

$

11

$

12

$

13

$

7
8
9
10
11
12

LOSS

Royalties
Net short-term capital gain or loss
Net long-term capital gain or loss
Net IRC Section 1231 gain or loss
Net gain or loss from disposal of IRC Section 179 property
Other income, losses or deductions

LOSS

LOSS
LOSS

LOSS
LOSS
LOSS

13

Total Lines 1 through 12

14

Apportionment from PA-20S/PA-65 Schedule H-Corp

15

Income apportioned to Pennsylvania (Multiply Line 13 by Line 14.)

15

$

16

Corporate net income tax withholding (Multiply Line 15 by 0.0899)

16

$

Must be six decimal places 14

l

Note to Corporate Partner: The amount on Line 16 has been remitted by the issuing partnership on the corporation’s behalf in payment of PA
corporate net income tax. The partnership is permitted to adjust the federal Schedule K-1 income for expenses or deductions.
Note to Partnership preparing Schedule CP: The partnership must complete this schedule to determine the withholding for nonfiling corporate
partners required to file an RCT-101, PA Corporate Net Income Tax Report. Before completing this schedule, complete the PA-20S/PA-65
Schedule H-Corp (to apportion business income (loss) for the corporate partner). The partnership should use the federal Schedule K-1 to
calculate withholding for any corporate partner that it is not filing an RCT-101. Withholding is based on federal Schedule K-1 income only.

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2023
Instructions for PA-20S/PA-65 Schedule CP

Corporate Partner CNI Withholding

PA-20S/PA-65 CP IN (DR) 04-23

GENERAL INFORMATION

COMPLETING PA SCHEDULE CP

PURPOSE OF SCHEDULE
The PA-20S/PA-65 Schedule CP is completed by a
partnership to determine the corporate net income tax
withholding for nonfiling corporate partners (C corporations
only) that are required to file an RCT-101, PA Corporate Net
Income Tax Report. A separate schedule must be completed
for each nonfiling corporate partner. Before completing this
schedule, complete the PA-20S/PA-65 Schedule H-Corp to
apportion business income (loss) for the corporate
partner(s). The partnership should use federal Form 1065
Schedule K-1 to calculate withholding for any corporate
partner that did not file an RCT-101, PA Corporate Net
Income Tax Report. Corporate net income tax withholding is
based on federal Form 1065 Schedule K-1 income. Each
entity partner should receive a copy of PA-20S/PA-65
Schedule H-Corp.

FOREIGN ADDRESS STANDARDS
If the partnership or entity formed as a limited liability
company that is classified as a partnership for federal
income tax purposes is located outside the U.S., it is
important to write the foreign address on the PA-20S/PA-65
Schedule CP, according to U.S. Postal Service standards.

All PA-20S/PA-65 Schedules CP must be filed with the
PA-65 Corp, Directory of Corporate Partners and
provided to the corporate partners for filing their RCT-101,
PA Corporate Net Income Tax Report. Partnerships that are
100 percent corporate owned must list all corporate partners
on the PA-65 Corp Directory whether the corporation is
compliant or not, based on filing requirements for the
RCT-101, PA Corporate Net Income Tax Report.
IMPORTANT: A Schedule CP only needs to be
completed for noncompliant corporate partners and is
not required for compliant partners who file the RCT-101 and
no corporate net income tax withholding payment is
calculated.
A nonfiling corporate partner is a corporation as defined in
72 P.S. §7401, which has not filed an RCT-101, PA
Corporate Net Income Tax Report, and paid corporate net
income tax for the previous taxable year. Apportionment
rules apply.

CORPORATE PARTNERS
The amount on Line 16 of PA-20S/PA-65 Schedule CP is
remitted by the issuing partnership on the corporation’s
behalf for payment of corporate net income tax withholding.
The partnership is permitted to adjust federal Form 1065
Schedule K-1 income for expenses or deductions.
Do not submit nonresident individual partner
withholding payments with PA-20S/PA-65 Schedule
CP. This schedule is only used to report C corporation,
nonfiler corporate net income tax withholding.
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Failure to use these standards may delay processing of
correspondence necessary to complete the processing of
the return.
To comply with foreign address standards, use the following
rules when completing the address portion of the PA-20S/
PA-65 Schedule CP:
● Eliminate apostrophes, commas, periods and hyphens.
Write the address in all uppercase letters. Addresses
should have no more than four lines and must be written
in black ink or typewritten. Pencil is unacceptable.
● Write the name of the entity in the spaces provided. Mail
may not be addressed to a person in one country “in
care of” a person in another country. The address of
items sent to general delivery must indicate the
addressee’s full legal name.
● Write the address in the space provided, including street
and building name and number, apartment or suite
numbers, city name and city or provincial codes. All lines
of the delivery address should appear in all capital
letters. The house number and street address or box
number must appear when mail is addressed to towns
or cities.
● Write only the name of the country in the space provided
for the city or post office.
● Do not include any entries in the state field other than
“OC” for Out-of-Country. The ZIP code spaces should
remain blank on the PA-20S/PA-65 Schedule CP.
Providing the address in this format will better ensure that
the department is able to contact the entity if we need
additional information.
Below are two examples of properly completed foreign
addresses.
FOREIGN ADDRESS EXAMPLES
Name: DIETRICH ENTERPRISES
Address 1: HARTMANNSTRASSE 7
Address 2: 5300 BONN 1
City: GERMANY
State: OC
ZIP Code: Leave Blank
OR
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Name: DIETRICH ENTERPRISES
Address 1: 117 RUSSELL DR
Address 2: LONDON W1PGHQ
City: ENGLAND
State: OC
ZIP Code: Leave Blank
CANADA (ONLY) ADDRESS EXAMPLE
The following address format may be used when the postal
address delivery zone number is included in the address:
Name: NORTH BY NORTHWEST CO
Address 1: 1010 CLEAR ST
Address 2: OTTAWA ONT K1A OB1
City: CANADA
State: OC
ZIP Code: Leave Blank
If the entity’s address does not fit in the available spaces on
the PA-20S/PA-65 Schedule CP using this format, please
include a separate statement with the form showing the
complete address.
NOTE: For a Canadian address, two spaces must
exist between the province abbreviation and the postal
code. Please review previous example where “ONT”
(province abbreviation) and “K1A OB1” (postal code) are
shown separated by two spaces in the address format.

SECTION I
GENERAL INFORMATION FOR THE CORPORATE
PARTNER
NAME OF CORPORATION
Enter the name of the nonfiling corporate partner (C
corporation).
CORPORATE PARTNER FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the corporate partner (C corporation).
CORPORATE PARTNER PERCENTAGE
Enter the corporate partner’s (C corporation) percentage of
profit sharing, loss sharing, and ownership of capital.
FIRST LINE OF ADDRESS
Enter the street address. If the address has an apartment
number, suite or RR number, enter after the street address.
Eliminate all punctuation such as apostrophes, commas,
periods and hyphens.
NOTE: If the street address along with the apartment
number, suite or RR number does not fit on the first
line of address, then enter the street address on the second
line of address and the apartment number, suite or RR
number on the first line of address.
SECOND LINE OF ADDRESS
Enter the post office box, if appropriate. If there is no post
office box, leave the second line of address blank. Eliminate
all punctuation such as apostrophes, commas, periods and
hyphens.
For a foreign address, enter the city or municipal designation. See FOREIGN ADDRESS EXAMPLES.
2

For Canadian addresses, enter the city and postal delivery
zone number. See CANADA ADDRESS EXAMPLE.
IMPORTANT: If the address has only a post office box,
enter on the first line of address.
CITY OR POST OFFICE, STATE AND ZIP CODE
Enter the appropriate information in each box. Eliminate all
punctuation such as apostrophes, commas, periods and
hyphens.
For Canadian and international addresses, the bottom lines
of the address should show only the country name, written
in full (no abbreviations) and in capital letters. See CANADA
ADDRESS EXAMPLE.
DATE C CORPORATION BECAME A PARTNER
Enter the date (MMDDYYYY) the C corporation became a
partner in the partnership.

LINE INSTRUCTIONS
SECTION II
GENERAL INFORMATION FOR THE PARTNERSHIP
NAME OF PARTNERSHIP ISSUING THIS FORM
Enter the complete name of the partnership.
PARTNERSHIP FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the partnership issuing this form.
ADDRESS
Enter the street address. If the address has an apartment
number, suite or RR number, enter after the street address.
Then on the second address line, enter the post office box if
applicable. If no street address is present, enter the P.O. Box
on the first address line.
For a foreign address, enter the city or municipal designation. See FOREIGN ADDRESS EXAMPLES.
For Canadian addresses, enter the city and postal delivery
zone number. See CANADA ADDRESS EXAMPLE.
CITY OR POST OFFICE, STATE AND ZIP CODE
Enter the appropriate information in each box. Eliminate all
punctuation such as apostrophes, commas, periods and
hyphens.
For Canadian and international addresses, the CITY field
should show only the country name, written in full (no
abbreviations) and in capital letters. See FOREIGN
ADDRESS EXAMPLES AND CANADA ADDRESS
EXAMPLE.
DATE PARTNERSHIP BEGAN DOING BUSINESS
IN PENNSYLVANIA
Enter the date (MMDDYYYY) the partnership began doing
business in Pennsylvania.

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SECTION III

LINE 10

INCOME OR LOSS AND DEDUCTIONS FOR CORPORATE PARTNER FROM FEDERAL SCHEDULE K-1
On the following lines, enter the income or loss and deductions for the corporate partner from federal Schedule K-1.

NET IRC §1231 GAIN OR LOSS
Enter the amount of IRC §1231 gain or loss from the
corresponding line of federal Form 1065 Schedule K-1.

LINE 1

LINE 11

ORDINARY INCOME OR LOSS FROM TRADE
OR BUSINESS ACTIVITIES
Enter the amount of income or loss from the corresponding
line of federal Form 1065 Schedule K-1.

NET GAIN OR LOSS FROM DISPOSAL OF IRC §179
PROPERTY
Enter the amount of income or loss from the disposition of
IRC §179 Property from the corresponding line of federal
Form 1065 Schedule K-1.

LINE 2

LINE 12

NET INCOME OR LOSS FROM RENTAL REAL
ESTATE ACTIVITIES
Enter the amount of rental income or loss derived from real
estate from the corresponding line of federal Form 1065
Schedule K-1.

OTHER INCOME, LOSS OR DEDUCTIONS
Enter the amount of other income, loss or deductions
(submit statement). Include any amount that is reported on
the corresponding line of federal Form 1065 Schedule K-1.

NET INCOME OR LOSS FROM OTHER
RENTAL ACTIVITIES
Enter the amount of rental income or loss from the
corresponding line of federal Form 1065 Schedule K-1.

IMPORTANT: Partnerships must include income
subject to the Repatriation Transition Tax (i.e. untaxed
earnings and profits from foreign corporations) that is
reported on the Other income line of the federal K-1. For
more information on the Repatriation Transition Tax, please
see Informational Notice Corporation Taxes and Personal
Income Tax 2018-1: Tax Cuts and Jobs Act of 2017.

LINE 4

LINE 13

LINE 3

GUARANTEED PAYMENTS
Enter the amount of guaranteed payments from the
corresponding line of the federal Form 1065 Schedule K-1.

LINE 5

TOTAL INCOME OR LOSS
Total Lines 1 through 12.

LINE 14

INTEREST INCOME
Enter the amount of interest income from the corresponding
line of federal Form 1065 Schedule K-1.

APPORTIONMENT FROM THE PA-20S/PA-65
SCHEDULE H-CORP
Enter the percentage of apportionment from PA-20S/PA-65
Schedule H-Corp.

LINE 6

LINE 15

ORDINARY DIVIDENDS
Enter the amount of income from ordinary dividends from
the corresponding line of federal Form 1065 Schedule K-1.

INCOME APPORTIONED TO PENNSYLVANIA
Multiply Line 13 by Line 14. If Line 15 is a loss, enter zero.

LINE 7

LINE 16

LINE 8

CORPORATE NET INCOME TAX WITHHOLDING
Multiply Line 15 if greater than zero by the 2023 corporate
rate of 0.0899 and enter the result on Line 16. The amount
on Line 16 represents the amount of corporate net income
tax withholding required for the C corporation by the
partnership.

NET SHORT-TERM CAPITAL GAIN OR LOSS
Enter the amount of income or loss from short-term capital
gains from the corresponding line of federal Form 1065
Schedule K-1.

Send a copy of this withholding statement to the corporate
partner listed on PA-20S/PA-65 Schedule CP. Each
corporate partner also must receive a copy of the
PA-20S/PA-65 Schedule H-Corp.

ROYALTIES
Enter the amount of income or loss from royalties from the
corresponding line of federal Form 1065 Schedule K-1.

LINE 9
NET LONG-TERM CAPITAL GAIN OR LOSS
Enter the amount of income or loss from long-term capital
gains from the corresponding line of federal Form 1065
Schedule K-1.
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