Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 25 - Business Corporation Tax
Part 6 - Limited Liability Partnerships and Limited Partnerships (280-RICR-20-25-6)
Section 280-RICR-20-25-6.8 - Pass-through Withholding Requirements
Current through September 18, 2024
A. Any LLP or LP with a nonresident partner(s) shall withhold income taxes on the income that is being passed through to the nonresident partners. The Form RI-1096PT shall be filed reporting these withholding payments. The nonresident partner(s) shall be provided a Form RI-1099PT in order to claim these withholding payments on their income tax return. If the nonresident partner is another pass-through entity, that entity shall also be required to file a Form RI-1096PT to pass-through the withholding payments to their member(s). The "Bulletin on Pass-through Entities to Non-resident Taxpayers" may be consulted for further information.
B. Any LLP or LP with nonresident partner(s) may file Form RI-1040C composite tax return instead of filing Form RI-1096PT. Each nonresident partner shall complete Form RI-1040C-NE and file it with the entity. The "Bulletin on Pass-through Entities to Non-resident Taxpayers" may be consulted for further information. This bulletin can be obtained at www.tax.ri.gov/misc/passthrough_entities.php
C. If the nonresident withholding tax liability of an LLP or LP can reasonably be expected to exceed $250 for the taxable year, then estimated payments are required on the 15th day of the 4th month, the 15th day of the 6th month, the 15th day of the 9th month and the 15th day of the first month of the entity's next succeeding taxable year. For a calendar year taxpayer, that would be April 15th, June 15th, September 15th and January 15th of the entity's next succeeding taxable year. LLPs and LPs are covered by the "safe harbor" provisions (80% of the current year tax liability or 100% of the prior year's tax liability at the current year rates) for the requirements of estimated tax payments as well as calculating underestimated interest. The appropriate estimated tax payment coupons for Form RI-1096PT-ES or Form RI-1040C-ES, as the case may be, shall be used to make these estimated payments.
