Nonresident Withholding Account Numbers Assigned
The Department of Revenue has issued Nonresident Withholding (NRW) account numbers. The numbers are comprised of 9 digits and are to be placed on the 740 NP-WH Estimated Vouchers, Extensions and Returns starting with 2016/2017 NRW forms. It should be noted that this account number
does not replace the Corporate/LLET account number.
Letters were mailed to taxpayers that were assigned a NRW account number. Please be advised that the letter is not a delinquency notification, but a notification of your account number.
If you feel you were assigned the number in error, please contact the Department of Revenue, Pass-through Entity Branch at DORWEBRESPONSEPASSTHROUGHENTITY@ky.gov or call 502-564-8139 and select option 1 followed by option 2.
If you need an NRW account number assigned, please contact the Department of Revenue, Registration Section through
DOR.WEBRESPONSEREGISTRATION@KY.GOV or call 502-564-3306.
KRS 141.206(5), every pass through entity doing business in Kentucky (except publicly traded partnerships) is required to withhold income tax on the distributive share income whether distributed or undistributed, of each:
- Nonresident individual partner/member/shareholder (including trusts and estates per
KRS 141.030(1); and
- Corporate partner/member that is doing business in Kentucky ONLY through its ownership interest in a pass through entity. That means if the corporate partner/ member is doing business in Kentucky pursuant to
KRS 141.010(25) for reason other than its ownership interest in a PTE, withholding is not required. Withholding is not required if net distributive share income is not subject to Kentucky income tax (such as PL 86.272 and
A Kentucky Nonresident Income Tax Withholding on Distributive Share Income Report and Composite Income Tax Return should be submitted on form 740NP-WH (with copy A of PTE-WH completed for each partner/member/shareholder) by the 15th day of the fourth month following the close of the tax year, at the maximum rate provided in
KRS 141.020 or
KRS 141.040 (6%).
A partner/member/shareholder may be exempt from withholding if appropriate tax return (KY 720, KY 740-NP, KY 741, etc.) for prior year was filed. A 740NP-WH form needs to be filed to demonstrate the exemption. In the case of exemption, the partner/member/shareholder is reporting pass through income on a current year tax return (KY720, KY 740-NP, or KY 741).
Effective for taxable years beginning after December 31, 2011, every pass-through entity required to withhold Kentucky income tax shall make a declaration and payment of estimated tax. For vouchers, and to determine if you are required to make estimated payments, please refer to the instructions for Form 740NP-WH-ES.
A partner/member/shareholder may claim nonresident withholding paid (as shown on the last line of the PTE-WH form) on the LLET and/or income tax return.
Extension of Time
An extension of time to file Form 740NP-WH Kentucky Nonresident Income Tax Withholding on Distributive Share Income Report and Composite Income Tax Return shall be obtained by filing the following forms on or before the due date of the return:
The balance of tax due shall accompany the extension; an extension of time to file the return does not extend the date for the payment of tax. If no tax is due, a copy of the federal Form 7004, Kentucky Form 720 SL or 102 must be attached to Form 740 NP-WH when filed. For complete instructions and Form 201NP-WH-SL, follow the link provided above.