It is important for entities to be aware of the decisions made by nonresident partners and shareholders regarding their Minnesota tax obligations. Partnerships and S corporations may be required to withhold tax from nonresident partners and shareholders if they are not making a pass-through entity tax election. Nonresident partners and shareholders may:
- Be required to be included in nonresident withholding
- Qualify to file as a part of a composite return
- Be able to reduce their nonresident withholding amount by completing an alternate withholding certificate.
To learn more, watch our short video on Nonresident Withholding