Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 25 - Business Corporation Tax
Part 7 - Limited Liability Companies (280-RICR-20-25-7)
Section 280-RICR-20-25-7.8 - Pass-through Withholding Requirements
Current through September 18, 2024
A. Any LLC with a nonresident member(s) shall withhold income taxes on the income that is being passed through to the nonresident members. The Form RI-1096PT shall be filed reporting these withholding payments. The nonresident member(s) shall be provided a Form RI-1099PT in order to claim these withholding payments on their income tax return. If the nonresident member is another pass-through entity, that member shall also be required to file a Form RI1096PT 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. This bulletin can be found at http://www.tax.ri.gov/misc/passthrough_entities.php
B. Any LLC with nonresident member(s) may file Form RI-1040C composite tax return instead of filing the Form RI-1096PT. Each nonresident member 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.
C. If the LLC's expected pass-through withholding tax liability is more than $250 for the taxable year, then estimated payments are required on the 15th day of the 4th month, 15th day of the 6th month, 15th day of the 9th month and 15th day of the first month of the pass-through 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 next succeeding taxable year. LLCs 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 of Form RI1096PT-ES or Form RI-1040C-ES shall be used to make these estimated payments.
