Pass-Through Entity Withholding Common Questions

  1. What is a "pass-through entity"?

  2. Who is required to withhold?

  3. Who is a "nonresident"?

  4. How do I file and pay the withholding?

  5. What exemptions apply?

  6. How does a nonresident file an exemption affidavit?

  7. What is a continuous exemption and how do I apply for one?

  8. If exemptions apply, do I still have to file Form PW-1?

  9. Am I required to make estimated payments?

  10. How do I make payments electronically?

  11. What about composite income tax returns?

  12. Does the nonresident still have to file a Wisconsin return?

  13. Does the 30% long-term capital gain exclusion apply?

  14. Can prior year losses be used to offset the amount subject to withholding?

  15. What happens when a pass-through entity is in a "tiered" structure, where it owns another pass-through entity?

  16. What penalties and interest apply for failure to follow these requirements?


FOR MORE INFORMATION PLEASE CONTACT:

MS 5-77
WISCONSIN DEPARTMENT OF REVENUE
Customer Service Bureau
PO Box 8949
Madison, WI 53708-8949
Phone: (608) 266-2776
Fax: (608) 267-1030
Email additional questions to dorincomepte@wisconsin.gov


February 1, 2019