Pennsylvania PA-40 NRC - Nonresident Consolidated Income Tax Return

PA-40 NRC - Nonresident Consolidated Income Tax Return
2023 PA-40 NRC - Nonresident Consolidated Income Tax Return (PA-40 NRC)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING
2307510053

PA-40 NRC

Nonresident Consolidated
Income Tax Return
PA-40 NRC (EX) MOD 04-23 (FI)
PA Department of Revenue

START

FEIN

2023

OFFICIAL USE ONLY

THIS FORM MAY BE USED FOR NONRESIDENT INDIVIDUAL PARTNERS/MEMBERS/SHAREHOLDERS.
ENTER THE PARTNERSHIP, LLC OR PA S CORPORATION NAME AND FEIN.
9 DIGIT - NO DASH

➜

TYPE OF BUSINESS ENTITY
(FILL IN ONE OVAL)

P - Partnership

Use ALL CAPITAL LETTERS
for address information.

G

NAICS Code

S - PA S Corp
L - LLC

PA S Corporation Name or Partnership Name

LIMITED TO 20 SPACES

Amended Return
Final Return

First Line of Address Street Address - If Address has Apartment Number, Suite, RR No. - Place on this Line.

LIMITED TO 22 SPACES

Extension Requested

MM/DD/YY

Second Line of Address

Date
Out-of-Existence
PO Box

Total Number
of Nonresident
Individuals

City or Post Office

LIMITED TO 14 SPACES

State

Country Code

ZIP Code

1 Apportioned Net Income (Loss) from the Operation of a Business, Profession,
or Farm, plus electing partners guaranteed payments for services . . . . . . . . . . . . . . . .

Number of
Nonresident
Individuals
electing to file
on this return

LOSS

1
LOSS

2 Net Gain (Loss) from the Sale, Exchange, or Disposition of Property . . . . . . . . . . . . . .
3 Net Income (Loss) from Rents, Royalties, Patents, and Copyrights,
plus electing partners guaranteed payments for services . . . . . . . . . . . . . . . . . . . . . . .

2
LOSS

3

If a loss, enter "0"

4 Estate or Trust Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
LOSS

5 Gambling and Lottery Winnings (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

6 Total PA Taxable Income. Add the income on Lines 1 through 5. Do Not Add Losses . . . . . . 6
7 PA Tax Due Before Allowable Credits. Multiply Line 6 by the tax rate 3.07 percent . . . . . . . . . 7
8 2023 Estimated PA Tax Withheld and Submitted for Qualifying Electing Nonresident
Individual Owners. See Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 2023 Extension Payment. See Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Total Other Credits. See Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
11 Total PA Credits. Add Lines 8, 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 TAX DUE. If Line 7 is more than Line 11, enter the difference here. Make check payable
to PA Dept. of Revenue. See final payment in the PA-20S/PA-65 instructions . . . . . . . . . . . . 12
13 OVERPAYMENT. If Line 11 is more than Line 7, enter the difference here. Complete
Line 14a and/or Line 14b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14a Amount of Line 13 to be refunded to the Partnership, LLC or PA S Corporation. . . . . . . . . . . 14a
14b Amount of Line 13 to be credited to the 2024 Nonresident Withholding Account . . . . . . . . . . 14b
The TOTAL of Lines 14a and 14b MUST equal Line 13.
Under penalties of perjury, I declare I have examined this return, including accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct and complete. Declaration of paid preparer is based on all information of which preparer has any knowledge.
Print/Type Name of General Partner, Principal Officer or
Authorized Individual

Signature of General Partner, Principal Officer or
Authorized Individual

Date MM/DD/YY Daytime Phone Number

Please Sign Your Return after printing.
Paid Preparer’s Use Only
Print/Type Preparer’s Name

Date MM/DD/YY Daytime Phone Number

Preparer’s Signature

Please Sign Your Return after printing.
Mark if Self-Employed

EC

OFFICIAL USE ONLY

FC

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2023
Instructions for PA-40 NRC
PA-40 NRC IN (EX) MOD 04-23

GENERAL INFORMATION
PURPOSE OF FORM
The PA-40 NRC, Nonresident Consolidated Return, is a tax
return used to combine and report the income (losses), PA
tax withheld, credits, etc., of two or more qualifying electing
nonresident individual owners of a domestic or foreign passthrough entity.

Nonresident Consolidated Income Tax Return

● A fiscal year entity that has a short-year period return
and a fiscal year period return that end in the same calendar year cannot file a PA-40 NRC for either period.

DEFINITIONS

IMPORTANT: A pass-through entity with only one
qualified nonresident individual owner may not file the
PA-40 NRC on behalf of that owner. A PA-40, Personal Income Tax Return, must be filed by the individual to report
the income or loss from the pass-through entity.

ELECTION TO FILE
A document maintained by the pass-through entity that
provides an assertion the individual nonresident owner is
qualified to participate in the filing of the PA-40 NRC. A
review of the election should be conducted annually to
assure that qualifying electing nonresident individual
owners continue to be eligible to participate. See
MAINTAINING RECORDS – SIGNED STATEMENTS FOR
ADDITIONAL INFORMATION.

NOTE: If an entity files a PA-40 NRC on behalf of its
qualifying electing nonresident individual owners,
those owners should not file the PA-40, Individual Income
Tax Return.

INDIVIDUAL
A natural person that includes the members of a partnership or association and the shareholders of a Pennsylvania
S corporation.

EFFECT OF FILING A CONSOLIDATED RETURN
Unless rejected, the department considers the PA-40 NRC,
Nonresident Consolidated Income Tax Return, a return filed
on behalf of a group of qualifying electing nonresident individual owners that meet the individual filing requirements of
Pennsylvania personal income tax law.

PASS-THROUGH ENTITY
A pass-through entity is a PA S corporation, partnership or
limited liability company classified as a partnership or PA S
corporation for federal income tax purposes.

The department’s acceptance of a PA-40 NRC is conditional
upon review to determine that it is a complete return, and
that all documentation was submitted.
This return is subject to revocation upon audit or review. The
department retains the right at any time to require the filing
of a PA-40, Personal Income Tax Return, from any of the individual partners or shareholders.
The department also retains the right to withdraw and modify
the authority to file a PA-40 NRC.
IMPORTANT: A qualifying electing nonresident individual owner may not change the election to file from
a PA-40 NRC to a PA-40 or vice versa after filing either
Pennsylvania tax return.
WHO MAY NOT FILE
The following may not file a PA-40 NRC:
● Any entity with only non-qualifying owners (see the definition of a non-qualifying owner for additional information);
● Any entity with only one qualifying electing nonresident
individual owner; and/or

QUALIFYING ELECTING NONRESIDENT INDIVIDUAL
OWNER
Any nonresident individual who owns an interest in a passthrough entity who meets the following additional requirements:
● Whose tax year is a calendar year;
● Who along with his or her spouse is a domiciliary of a
state or country other than Pennsylvania during the entire calendar year;
● Who along with his or her spouse does not maintain a
permanent place of abode in Pennsylvania during the
calendar year;
● Who has no other Pennsylvania-taxable income derived
from, or connected with Pennsylvania sources other
than his or her distributive share of income or (loss) for
the calendar year; and
● Who elects to participate in the consolidated filing.
NON-QUALIFYING OWNER
Any pass-through entity owner other than a nonresident individual and all nonresident individuals with more than one
source of income or (loss) from Pennsylvania. Examples include, but are not limited to:
● Estates as owners of the pass-through entity;

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● Trusts as owners of the pass-through entity (regardless
of how the trust is taxed);
● Other pass-through entities as owners of the passthrough entity; and
● Individuals who own more than one pass-through entity
with Pennsylvania-source income or who may have any
other Pennsylvania income from any sources other than
the current pass-through entity such as:
○

Compensation;

○

Business or farm income or losses;

○

Gains or losses from the sale of property;

○

Rental income or losses;

○

Estate or trust income; and/or

○

Gambling or lottery winnings.

IMPORTANT: A list of qualifying electing nonresident
individual owners must be maintained by the passthrough entity along with a separate list of non-qualifying
owners. Section II of the PA-20S/PA-65 Schedule NW must
be prepared. Schedule NW, Section II provides a list of all
nonresident individual owners (qualifying and non-qualifying). Refer to the separate instructions for PA-20S/PA-65
Schedule NW, Section II for additional information.
IMPORTANT: Non-qualifying owners as listed above
are required to file the applicable PA-40, Pennsylvania
Individual Income Tax Return; PA-41 Fiduciary Income Tax
Return or the PA-20S/PA-65 PA S Corporation/Partnership
Information Return.

MAINTAINING RECORDS
SIGNED STATEMENTS
Every participating nonresident individual owner must make
an election to be part of the PA-40 NRC in writing each year.
The elections must be maintained in the pass-through entity’s files. The pass-through entity must maintain for inspection at its principal office the following:
● A list of all nonresident owners with all pertinent information for the owners including the names (list by last
name in alphabetical order), addresses, Social Security
numbers, ownership interests, distributive shares of total
taxable income, tax due before application of payments,
credits, shares of tax withheld or payments, and shares
of overpayment, if any.
● A signed statement from each qualifying electing nonresident individual owner listed on the PA Schedule NW,
Nonresident Tax Withheld by PA S Corporations and
Partnerships, Section II, evidencing the individual’s election to join in filing a Pennsylvania consolidated group
return for the taxable year.
NOTE: The department does not have an official election form. However, it suggests that the statement include assertions regarding all five requirements that must be
met to be a qualifying electing nonresident individual owner.
2

It is the responsibility of the pass-through entity to keep the
election form it receives from its qualifying electing nonresident individual owners as part of the pass-through entity’s
records. Do not submit the election form to the department.

FILING THE PA-40 NRC
The filing of a PA-40 NRC does not affect or change the requirement for filing the PA-20S/PA-65, PA S
Corporation/Partnership Information Return. The passthrough entity is still required to file the PA-20S/PA-65 and
issue PA Schedules RK-1 and NRK-1 to its owners. Please
refer to the instructions for the filing of the PA-20S/PA-65 Information Return.

WHAT TO FILE
The completed PA-40 NRC must be sent to the department
for each pass-through entity filing a PA-40 NRC return on behalf of its qualifying electing nonresident individual owners.
CAUTION: The department will not accept federal
Form 1065 or 1120S Schedule K-1 because the federal schedule does not properly reflect the classified Pennsylvania-taxable income amounts. Please do not attach the
federal Schedules K-1 to the PA- 40 NRC. The PA Schedules NRK-1 submitted to nonresident individuals should reflect Pennsylvania-taxable income to nonresidents.
IMPORTANT: Do not create a substitute PA-40 NRC
that has not been approved by the department. A
spreadsheet return is not an approved and acceptable tax
form. Unapproved tax forms filed with the department may
be rejected and returned to the taxpayer or tax return preparer and may result in the imposition of interest and
penalty. In addition, unapproved tax forms filed with the department may delay the processing of refunds. If you are filing any tax form other than an official tax form, please review
Miscellaneous Tax Bulletin 2008-02 on the department’s
website.

WHEN TO FILE
File the current year PA-40 NRC on or before April 15, 2024,
or, if an extension is filed, by October 15, 2024.
If the due date falls on a Saturday, Sunday, or business holiday, the entity must file its PA-40 NRC no later
than midnight on the first business day following the Saturday, Sunday, or business holiday. The U.S. Postal Service
postmark date on the envelope is proof of timely filing.
Pennsylvania follows the same tax year as federal rules.
If the return cannot be filed by the original due date, request an extension of time to file. See EXTENSION OF
TIME TO FILE.
If the return is not filed by the original due date or extended due
date and the tax due is not paid by the original due date, the
department imposes late filing and underpayment penalties.

PA-40 NRC

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CALENDAR-YEAR ENTITY
A pass-through entity must report all taxable income recognized between Jan. 1 and Dec. 31.
CAUTION: Fiscal year filing for the PA-40 NRC is
not permitted.
FISCAL YEAR ENTITY
A fiscal year is a period of 12 consecutive months without regard to the calendar year. The fiscal year is designated by the
calendar year in which it ends. A fiscal year pass-through entity
reports all taxable income recognized during the fiscal year.
Fiscal year pass-through entities are allowed to file the PA40 NRC on behalf of its nonresident individual owners as
long as the nonresident individual qualifies and elects to be
included in the filing.
A fiscal year pass-through entity files the PA-40 NRC return
using forms for the year that includes the ending year of the
fiscal year period. While the pass-through entity files its return on forms using the beginning year of the fiscal year period, the owners of the pass-through entity report the income
on forms using the ending year of the fiscal year period.
EXAMPLE: ABC Company has a fiscal year from July 1,
2022 until June 30, 2023. ABC Company would file the PA20S/PA-65 Information Return, on the 2022 form – the beginning year of the pass-through entity. ABC Company
would file the PA-40 NRC on the 2023 form – the ending
year of the pass-through entity. The PA Schedule NRK-1 for
each qualifying electing nonresident individual owner being
included on the 2023 PA-40 NRC verifies the income (loss)
earned during ABC Company’s fiscal year. The fiscal
beginning and ending dates are also reported on the PA
Schedule NRK-1.

EXTENSION OF TIME TO FILE
If the pass-through entity cannot file its PA-40 NRC on or
before the original return due date, the pass-through entity
must use REV-276, Application for Extension of Time to File,
to file for a 6-month extension.
The department will not grant an extension for more than 6
months except for taxpayers outside the U.S.
An extension for the PA-40 NRC is filed separately from extensions for business returns since nonresident individuals
may not file on a fiscal year basis. A federal extension does
not grant an extension of time to file the PA-40 NRC.
An extension of time to file the PA-40 NRC does not extend
the filing deadline for any other Pennsylvania tax return. A
pass-through entity must obtain a separate extension of time
to file all other Pennsylvania tax returns.
QUALIFYING FOR THE EXTENSION
When a pass-through entity requests an extension of time
to file the PA-40 NRC it extends the filing time for its qualifying electing nonresident owners also.

NOTE: An extension of time to file a PA-40 NRC does
not extend the time for full payment of the nonresident
withholding tax, nor does it preclude the assessment of
penalty and interest for underpayment of tax due. Pay in full
the amount reasonably estimated as the nonresident withholding tax due on or before the original due date.
HOW TO OBTAIN AN EXTENSION OF TIME TO FILE
1. Properly estimate the pass-through entity’s current
year nonresident withholding tax liability using the information available to you.
2. Enter the pass-through entity’s tax liability on the REV276.
3. File the REV-276 on or before the original return due
date of the pass-through entity’s return along with a
check or money order for the current year tax liability,
or file electronically through myPaTH. See
www.revenue.pa.gov for more information on making
payments through myPaTH.
NOTE: Payments equal to or greater than $15,000
must be made electronically. Payments not made
electronically will be subject to a penalty equal to 3% of the
payment amount not to exceed $500.
File the REV-276 in sufficient time before the return due
date. The return due date is April 15, 2024.
MAIL FORM REV-276 TO:
PA DEPARTMENT OF REVENUE
BUREAU OF INDIVIDUAL TAXES
PO BOX 280504
HARRISBURG PA 17128-0504
HOW TO FILE THE EXTENDED PA-40 NRC
When filing a PA-40 NRC for which an extension was
requested, the pass-through entity should fill in the “Extension Requested” oval at the top of the PA-40 NRC.
NOTE: Do not submit the REV- 276 with the PA-40
NRC.
EXTENSION DUE DATES
See WHEN TO FILE.

WHEN TO AMEND THE PA-40 NRC
An amended PA-40 NRC can only be filed to adjust the
amounts on a return for increases or decreases in amounts
due to amendments made by the pass-through entity to PA
Schedule NRK-1 or to correct errors. An amended PA-40
NRC cannot be filed to include any additional electing nonresident individual owner or to reverse an election by removal
of a non-qualifying owner.
OVER-REPORTED INCOME (REFUND CLAIM)
If the pass-through entity over reported income, failed to
claim allowable credits, failed to report allowable deductions,
or events transpired that decreased its reportable Pennsylvania-taxable income, including an IRS report of change,
the pass-through entity must file an amended PA-40 NRC.

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The amended return must be filed within three years of the
original due date or the extended due date with an approved
extension on file.
NOTE: An amended PA-40 NRC should not be filed
requesting a refund after the statute of limitations if a
tax period has expired (three years from the original or extended due date, or payment of the tax). Additionally, you
may not file an amended return after the department has issued an assessment for the same taxable issues.
The amended PA Schedules NRK-1 must show the corrected Pennsylvania-taxable income, so the nonresident
shareholders or partners can report the correct income on
their Pennsylvania tax return.
In order to obtain any refunds, owners must also file an
amended Pennsylvania tax return within the later of three
years of the original or extended due date of their return, or
three years from the date of payment.
UNDER-REPORTED INCOME (TAX DUE)
If the pass-through entity under reported income, erroneously claimed credits or deductions to which it was not
entitled, or events transpired that increased reportable
Pennsylvania-taxable income, including an IRS report of
change, the pass-through entity must file an amended PA40 NRC within 30 days from the determination of such increase. The amended PA Schedules NRK-1 must show the
corrected Pennsylvania-taxable income so the nonresident
shareholders can report the correct Pennsylvania income
on their Pennsylvania tax return.
The pass-through entity and owners must also file an amended
Pennsylvania tax return within 30 days of the discovery of the
error to report any increase in income for taxes due.
An amended return should not be filed requesting a
refund in the nine-month period prior to the close of
the statute of limitations for a tax period (three years from
the original or extended due date of the return). A Board of
Appeals Petition Form (Form REV-65) should be filed for
amendments requesting refunds during that time period to
protect appeal rights in the event the request for refund is
denied. A Board of Appeals Petition may not be acted upon
by the Board of Appeals if an amended return refund is denied and the Board of Appeals Petition is filed after the threeyear period has ended.

HOW TO AMEND THE PA-40 NRC
If after filing the PA-40 NRC a pass-through entity discovers
that an incorrect return has been submitted to the department and/or federal Form 1065 or federal Form 1120S has
been amended or if the Internal Revenue Service changes
or corrects any item of income, gain or loss previously reported, the pass-through entity must submit an amended
PA-40 NRC to the department.
To amend your original PA-40 NRC use a tax return form for
the tax year that is to be amended and fill in the “Amended
Return” oval at the top of the tax return. Do not send a copy
4

of your original return. Complete the return by entering the
corrected information and submit it. See WHERE TO FILE.
IMPORTANT: If an amended PA Schedule NRK-1 is
issued, the original PA-40 NRC must also be amended
to reflect the changes on the PA Schedule NRK-1.

WHERE TO FILE
Any pass-through entity filing on behalf of its qualifying electing nonresident individual owners must submit a PA-40 NRC
with or without payment and the appropriate schedules to:
PA DEPARTMENT OF REVENUE
CONSOLIDATED RETURN
PO BOX 280418
HARRISBURG PA 17128-0418
If the tax liability of the qualifying electing nonresident individual owners exceeds the nonresident withholding tax payments, the pass-through entity must pay the deficiency by
the date prescribed for filing the PA-40 NRC. The passthrough entity makes the final payment with the PA-40 NRC
or with an extension request.

HOW TO PAY
FINAL PAYMENT OF NONRESIDENT WITHHOLDING
TAX WITH THE PA-40 NRC
NOTE: Payments made equal to or greater than
$15,000 must be made electronically. Payments not
made electronically will be subject to a penalty equal to 3% of
the payment amount not to exceed $500.
Payments can be made electronically via myPATH. See
www.revenue.pa.gov for more information on making payments through myPATH.
Submit a check or money order made payable to the PA
Dept. of Revenue in the same envelope with the PA-40
NRC. Enclose the PA-20S/PA-65 V Nonresident Withholding
Payment Voucher (found on the department's website). Print
the pass-through entity's federal employer identification
number (FEIN) and 2023 Final Nonresident Withholding on
the check or money order. See WHERE TO FILE.
Do not staple the check or money order to your return.

COMPLETING THE PA-40 NRC
FOREIGN ADDRESS INSTRUCTIONS
If the pass-through entity is located outside the U.S., it is important to write the foreign address on the PA-40 NRC according to U.S. Postal Service standards.
Failure to use these standards may delay processing or any
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-40 NRC:

PA-40 NRC

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● 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 pass-through 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 first and second line of the address on the First
Line of Address field in all capital letters.
● Write the state/province if one exists and the foreign
postal number (ZIP code equivalent) on the Second
Line of Address field separated by a comma. This field
is the only field that should contain any punctuation.
● The State and ZIP code spaces should remain blank on
the PA-40 NRC Nonresident Consolidated Income Tax
Return.
● Write the two-character country code for the country in
the Country Code field. You can find the appropriate
Country
Codes
at
https://www.irs.gov/e-fileproviders/foreign-country-code-listing-for-modernizede-file.
Providing the address in this format will better ensure that
the department is able to contact the pass-through entity if
we need additional information.
Below are examples of properly completed foreign addresses:
NAME: SILVER LAKE PARTNERS
FIRST LINE OF ADDRESS: 2045 ROYAL ROAD
SECOND LINE OF ADDRESS: ENGLAND, WIP 6HQ
CITY OR POST OFFICE: LONDON
STATE:
ZIP CODE:
COUNTRY CODE: UK

IDENTIFICATION INFORMATION
FEDERAL EMPLOYER IDENTIFICATION NUMBER
(FEIN)
Enter the nine-digit FEIN of the pass-through entity.
PA S CORPORATION NAME OR PARTNERSHIP NAME
Enter the complete name of the pass-through entity.
FIRST LINE OF ADDRESS
Enter the street address. If the address has an apartment
number, suite, or RR number, enter after the street address.
NOTE: If the street address along with the apartment
number, suite, or RR number does not fit on the first
line of address, enter the street address on the second
line of address and the apartment number, suite, or RR
number on the first line of address, if not an out-of-country
address. For an out-of-country address, see FOREIGN
ADDRESS EXAMPLES.
SECOND LINE OF ADDRESS
Enter the post office box, if applicable. If there is no post office box, leave the second line of address blank.
For an out-of-country address enter the country and/or foreign postal number. See FOREIGN ADDRESS EXAMPLES.
IMPORTANT: If the address has only a post office box,
enter on the first line of address.
CITY, STATE, ZIP CODE AND COUNTRY CODE
Enter the appropriate information in each box. Write the first
and second line of address on the first line of the address.
Write the state/province if one exists and the foreign postal
number (ZIP code equivalent) on the second line of the address, separated by a comma. Write the city in the space
provided. Do not abbreviate. Write the two-character country
code for the country in the Country Code field. You can find
the appropriate Country Codes at https://www.irs.gov/e-fileproviders/foreign-country-code-listing-for-modernized-e-file.
TYPE OF BUSINESS ENTITY
Fill in the appropriate oval.

OR
NAME: SILVER LAKE PARTNERS
FIRST LINE OF ADDRESS: 1010 CLEAR STREET
SECOND LINE OF ADDRESS: CANADA, K1A OB1
CITY OR POST OFFICE: OTTAWA
STATE:
ZIP CODE:
COUNTRY CODE: CA
If the pass-through entity’s address does not fit in the available spaces on the PA-40 NRC using this format, please include a separate statement with the return showing the
complete address.

NORTH AMERICAN INDUSTRY CLASSIFICATION
SYSTEM (NAICS) CODE
Provide the six-digit federal NAICS code identified on Page
1 of federal Form 1120S or 1065.
AMENDED RETURN
If the return is amended, fill in the oval.
FINAL RETURN
If the pass-through entity is out of business, fill in this oval.
DATE OUT-OF-EXISTENCE
Enter the date the pass-through entity went out of existence
(MMDDYY).

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EXTENSION REQUESTED
Fill in the oval if the pass-through entity requested an extension of time to file the PA-40 NRC. For more information,
refer to EXTENSION OF TIME TO FILE.
TOTAL NUMBER OF NONRESIDENT INDIVIDUALS
Enter the number of all nonresident individual owners as
listed on Schedule NW, Section II.

withholding payments not allocated to either qualifying electing nonresident individual owners or non-qualifying owners
made on behalf of the pass-through entity.
CAUTION: Any amount allocated to non-qualifying
owners cannot be included on Line 8. The amounts
for non-qualifying owners will be included on the tax returns
filed by those taxpayers.

NUMBER OF NONRESIDENT INDIVIDUALS ELECTING
TO FILE ON THIS RETURN
Enter the number of qualifying electing nonresident individual owners included in the filing of the PA-40 NRC as listed
on Schedule NW, Section ll.

NOTE: Although the income (loss), nonresident tax
withheld, and tax credit amounts for non-qualifying
owners are not included on the PA-40 NRC, all non-qualifying individuals must be listed on the PA Schedule NW,
Section II.

LINE INSTRUCTIONS

LINE 9

RECORDING DOLLAR AMOUNTS
Show money amounts in whole-dollars only. Eliminate any
amount less than $0.50 and increase any amount that is
$0.50 or more to the next highest dollar.

LINES 1 THROUGH 5
PENNSYLVANIA-SOURCE TAXABLE INCOME (LOSS)
Enter the Pennsylvania net taxable income (loss), by income
class, from the PA Schedule NRK-1 of the qualifying electing
nonresident individual owners. If a loss, fill in the oval next
to the line.

LINE 6
TOTAL PA-TAXABLE INCOME
Add only the positive income amounts on Lines 1 through
5. Do not subtract losses. A loss in one class of income may
not offset income or gain in another class of income.
Guaranteed payments for services, as shown on the
PA Schedule NRK-1 of a qualifying electing non-resident individual owner, must be added to the appropriate
class of income.

LINE 7
PA TAX DUE BEFORE ALLOWABLE CREDITS
Multiply the total on Line 6 by 3.07 percent (0.0307) to calculate the Pennsylvania income tax due before allowable
credits.

LINE 8
2023 ESTIMATED PA TAX WITHHELD
AND SUBMITTED FOR QUALIFYING ELECTING
NONRESIDENT INDIVIDUAL OWNERS
Enter the total amount of estimated nonresident withholding
payments made during the year that are allocated to the
qualifying electing nonresident individual owners participating
in the filing of this return as reported on Schedule NW, Section l, Line B. Also include any carryover credit from Line 14b
of your 2022 PA-40 NRC and any other excess nonresident
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2023 EXTENSION PAYMENT
Enter the amount of the extension payment submitted on
behalf of the PA-40 NRC.

LINE 10
TOTAL OTHER CREDITS
Add the amount of Other Credits from PA Schedule NRK-1,
Line 7 for the restricted tax credit allocated to the qualifying
electing nonresident individual owners and enter the amount
on Line 10 of the PA-40 NRC. If multiple credits are included
on Line 7 of the PA Schedule NRK-1 for the qualifying electing nonresident individual owners, a statement or worksheet
must be included that provides a breakdown of the credits
by amount for each credit and qualifying electing nonresident individual owner.
CAUTION: Do not include amounts from Line 7 of the
PA Schedules NRK-1 for non-qualifying owners.

LINE 11
TOTAL PA CREDITS
Add Lines 8, 9 and 10.

LINE 12
TAX DUE
If Line 7 is more than Line 11, enter the difference. If the
amount due is less than $1, the department does not require
payment but does require the entity to file the PA-40 NRC.

LINE 13
OVERPAYMENT
If Line 11 is more that Line 7, enter the difference. The department will not refund an overpayment less than $1. Complete Lines 14a and/or 14b.

LINE 14A
REFUND AMOUNT
Enter the amount of Line 13 to be refunded to the passthrough entity.

PA-40 NRC

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LINE 14B
CREDITED AMOUNT
Enter the amount of Line 13 to be credited to the 2023 nonresident withholding account. The department will not credit
an overpayment of less than $1.
The total of Lines 14a and 14b must equal Line 13.

WHO MUST SIGN
GENERAL PARTNER, PRINCIPAL OFFICER OR
AUTHORIZED INDIVIDUAL SIGNATURE AND NAME
The PA-40 NRC must be signed and dated.

program. Pennsylvania follows federal guidelines for
signature requirements for the preparer.
If a partner, shareholder or employee of the pass-through
entity completes the PA-40 NRC the paid preparer’s space
should remain blank. In addition, anyone who prepares the
PA-40 NRC, Nonresident Consolidated Income Tax Return,
but does not charge the pass-through entity should not complete the paid preparer section.
Anyone who prepares a PA-40 NRC for a fee or incident to
the performance of services for which the preparer charges
a fee (e.g., an attorney provides legal services for a fee and
includes for free) the preparation of the PA-40 NRC must
complete the required paid preparer information listed below:

The pass-through entity has not filed a valid PA-40 NRC unless it is properly signed. The individual signing the return
must be a general partner, limited liability company member,
S corporation officer, and/or authorized partner or representative or individual expressly authorized to sign.

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

The pass-through entity official signing the return verifies by
written declaration, under penalties of perjury, that he or she
personally has examined the PA-40 NRC and its accompanying schedules and to the best of his or her knowledge, the
PA-40 NRC is true, correct and complete.

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

The pass-through entity official that is responsible for signing
the PA-40 NRC must sign it by hand; signature stamps or
labels are not acceptable, and include his or her title, date,
and daytime phone number.
The responsible official must submit all required schedules
with the PA-40 NRC.
PREPARER’S SIGNATURE AND NAME
A paid preparer may sign original or amended returns by
rubber stamp, mechanical device, or computer software

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

● Print or type the paid preparer’s company or corporation
name and federal employer identification number, if applicable.
● Print or type the paid preparer’s Preparer Tax Identification Number (PTIN). If you are a paid preparer, you must
use a PTIN issued by the Internal Revenue Service
(IRS) to identify yourself in the paid preparer section of
the tax return.
● Give a copy of the return to the taxpayer.
If someone prepares the return at no charge, the paid preparer’s area need not be completed.

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