Form 502W "Pass-Through Entity Withholding Tax Payment" - Virginia

What Is Form 502W?

This is a legal form that was released by the Virginia Department of Taxation - a government authority operating within Virginia. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on August 1, 2018;
  • The latest edition provided by the Virginia Department of Taxation;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;

Download a fillable version of Form 502W by clicking the link below or browse more documents and templates provided by the Virginia Department of Taxation.

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Download Form 502W "Pass-Through Entity Withholding Tax Payment" - Virginia

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Pass-Through Entity Withholding Tax Payment
Pass-through entities are required to submit returns and payments electronically. Use this voucher only if you have been granted a waiver.
For details, visit the Department’s website at www.tax.virginia.gov.
General Information
Undue Hardship
Every pass-through entity (PTE) doing business in the Commonwealth
If a PTE believes that the withholding requirement causes an undue
that has taxable income derived from Virginia sources and must allocate
hardship, the PTE may apply to the Tax Commissioner requesting an
any portion of that income to a nonresident owner is required to pay
exemption. In addition to any other information that is pertinent to the
the withholding tax. The PTE is required to withhold 5% of the share of
PTE’s petition for relief, the letter must provide information that will enable
taxable income from Virginia sources that is allocable to each nonresident
the Tax Commissioner to compare and evaluate the cost to the PTE of
owner. The amount of withholding tax may be reduced by any tax credits
complying with the withholding tax requirements, and the cost to the
that were earned by the PTE and allowable by the Code of Virginia that
Commonwealth of collecting income tax from any nonresident owners
pass through to nonresident owners.
that do not voluntarily file Virginia income tax returns and pay the tax.
How to Make Withholding Tax Payments Electronically
Exempt Owners
To make payments electronically, use the eForms application on the
The PTE must pay the withholding tax for all nonresident owners, with
Department’s website at www.tax.virginia.gov. Select the 502W from
the following exceptions:
the eForms list and complete the form and payment information online.
Individuals who are exempt from paying federal income taxes based
You can schedule your payment for a future date.
on their status or who are exempt from Virginia income taxes. The
A PTE may also make its tax payments using an ACH credit transaction
exemption must apply to the individual’s share of the PTE’s income.
through its bank. Some banks may charge a fee for this service. For
Examples are diplomatic immunity and individuals who did not have
information on how to submit ACH credit payments to the Department,
any liability for Virginia income tax in the previous year and who do
see the Electronic Payment Guide at www.tax.virginia.gov.
not expect to have any liability in the current year.
When to File and Pay
Entities other than individuals and corporations that are exempt
from paying federal income taxes by reason of their purpose or
The withholding tax payment is due on the due date of the PTE’s return
activities. The exemption from federal income tax must apply to the
regardless of whether the extension to file Form 502 is used. For calendar
entity’s share of the PTE’s income. Examples of exempt entities are:
year filers, the withholding tax payment is due on April 15, 2019.
Other PTEs. Generally, a PTE does not need to withhold for
Purpose of Form
a nonresident owner that is also a PTE. These nonresident
Use Form 502W:
owner PTEs are responsible for filing their own Forms 502
To make a withholding payment when a PTE has an approved
and must pay the withholding tax for their nonresident owners’
waiver to file on paper rather than electronically
shares of income from Virginia sources. If a PTE is notified
To make a withholding payment prior to filing Form 502, usually
by a nonresident owner PTE that the nonresident owner PTE
when the PTE is filing during the automatic 6-month extension
is not going to file a Form 502, then the PTE is required to
To make a withholding payment prior to the due date
withhold on the nonresident owner PTE.
Do not use Pass-Through Entity Payment Vouchers (Form 502W and
Caution: If a PTE withholds on a nonresident owner PTE, the
Form 502V) to make payments with the Unified Nonresident Individual
nonresident owner PTE cannot claim credit for the withholding
Income Tax Return, Form 765.
on its Form 502. PTE withholding is not “generation skipping”
and does not pass through an intermediate PTE to owners
NOTE: Form 502V must be used when a PTE makes a payment with
that are more than one level of ownership away. If a PTE
the Form 502.
erroneously withholds for a nonresident owner PTE, the PTE
Exempt Entities
should file an amended Form 502. See the Amended Returns
The PTE will not be required to pay the withholding tax if it:
section of the Form 502 instructions for additional information.
Is a Publicly Traded Partnership
Entities exempt by reason of diplomatic immunity or pursuant
Is a Disregarded Entity
to treaties between the United States and other countries. An
Files a Unified Return on Behalf of All Nonresident Owners
Detach at dotted line below. DO NOT SEND ENTIRE PAGE.
Form 502W
Pass-Through Entity Withholding Tax Payment
VIRGINIA DEPARTMENT OF TAXATION
(Doc ID 522)
Payment must be made electronically. Use this
P.O. BOX 1500, RICHMOND, VA 23218-1500
For assistance, call (804) 367-8037.
voucher only if you have an approved waiver.
Check if initial filer
(This is the first year filing a PTE return.)
To receive credit for your payment in the correct
taxable year, please enter the ending month
0000000000000000 5220000 000000
(numerical) and year.
FEIN
Entity Type
NAICS Code
Month Ending
Year Ending
12
OR;
Calendar year:
Name of Pass-Through Entity
OR;
Fiscal year
Address (Number and Street)
Short taxable year
Address Continued
City, State, and ZIP Code
0 0
$
.
I declare that this return (including accompanying schedules and statements) has been examined
Amount of Payment
by me and to the best of my knowledge and belief is true, correct, and complete.
Signature
Date
Phone Number
Pass-Through Entity Withholding Tax Payment
Pass-through entities are required to submit returns and payments electronically. Use this voucher only if you have been granted a waiver.
For details, visit the Department’s website at www.tax.virginia.gov.
General Information
Undue Hardship
Every pass-through entity (PTE) doing business in the Commonwealth
If a PTE believes that the withholding requirement causes an undue
that has taxable income derived from Virginia sources and must allocate
hardship, the PTE may apply to the Tax Commissioner requesting an
any portion of that income to a nonresident owner is required to pay
exemption. In addition to any other information that is pertinent to the
the withholding tax. The PTE is required to withhold 5% of the share of
PTE’s petition for relief, the letter must provide information that will enable
taxable income from Virginia sources that is allocable to each nonresident
the Tax Commissioner to compare and evaluate the cost to the PTE of
owner. The amount of withholding tax may be reduced by any tax credits
complying with the withholding tax requirements, and the cost to the
that were earned by the PTE and allowable by the Code of Virginia that
Commonwealth of collecting income tax from any nonresident owners
pass through to nonresident owners.
that do not voluntarily file Virginia income tax returns and pay the tax.
How to Make Withholding Tax Payments Electronically
Exempt Owners
To make payments electronically, use the eForms application on the
The PTE must pay the withholding tax for all nonresident owners, with
Department’s website at www.tax.virginia.gov. Select the 502W from
the following exceptions:
the eForms list and complete the form and payment information online.
Individuals who are exempt from paying federal income taxes based
You can schedule your payment for a future date.
on their status or who are exempt from Virginia income taxes. The
A PTE may also make its tax payments using an ACH credit transaction
exemption must apply to the individual’s share of the PTE’s income.
through its bank. Some banks may charge a fee for this service. For
Examples are diplomatic immunity and individuals who did not have
information on how to submit ACH credit payments to the Department,
any liability for Virginia income tax in the previous year and who do
see the Electronic Payment Guide at www.tax.virginia.gov.
not expect to have any liability in the current year.
When to File and Pay
Entities other than individuals and corporations that are exempt
from paying federal income taxes by reason of their purpose or
The withholding tax payment is due on the due date of the PTE’s return
activities. The exemption from federal income tax must apply to the
regardless of whether the extension to file Form 502 is used. For calendar
entity’s share of the PTE’s income. Examples of exempt entities are:
year filers, the withholding tax payment is due on April 15, 2019.
Other PTEs. Generally, a PTE does not need to withhold for
Purpose of Form
a nonresident owner that is also a PTE. These nonresident
Use Form 502W:
owner PTEs are responsible for filing their own Forms 502
To make a withholding payment when a PTE has an approved
and must pay the withholding tax for their nonresident owners’
waiver to file on paper rather than electronically
shares of income from Virginia sources. If a PTE is notified
To make a withholding payment prior to filing Form 502, usually
by a nonresident owner PTE that the nonresident owner PTE
when the PTE is filing during the automatic 6-month extension
is not going to file a Form 502, then the PTE is required to
To make a withholding payment prior to the due date
withhold on the nonresident owner PTE.
Do not use Pass-Through Entity Payment Vouchers (Form 502W and
Caution: If a PTE withholds on a nonresident owner PTE, the
Form 502V) to make payments with the Unified Nonresident Individual
nonresident owner PTE cannot claim credit for the withholding
Income Tax Return, Form 765.
on its Form 502. PTE withholding is not “generation skipping”
and does not pass through an intermediate PTE to owners
NOTE: Form 502V must be used when a PTE makes a payment with
that are more than one level of ownership away. If a PTE
the Form 502.
erroneously withholds for a nonresident owner PTE, the PTE
Exempt Entities
should file an amended Form 502. See the Amended Returns
The PTE will not be required to pay the withholding tax if it:
section of the Form 502 instructions for additional information.
Is a Publicly Traded Partnership
Entities exempt by reason of diplomatic immunity or pursuant
Is a Disregarded Entity
to treaties between the United States and other countries. An
Files a Unified Return on Behalf of All Nonresident Owners
Detach at dotted line below. DO NOT SEND ENTIRE PAGE.
Form 502W
Pass-Through Entity Withholding Tax Payment
VIRGINIA DEPARTMENT OF TAXATION
(Doc ID 522)
Payment must be made electronically. Use this
P.O. BOX 1500, RICHMOND, VA 23218-1500
For assistance, call (804) 367-8037.
voucher only if you have an approved waiver.
Check if initial filer
(This is the first year filing a PTE return.)
To receive credit for your payment in the correct
taxable year, please enter the ending month
0000000000000000 5220000 000000
(numerical) and year.
FEIN
Entity Type
NAICS Code
Month Ending
Year Ending
12
OR;
Calendar year:
Name of Pass-Through Entity
OR;
Fiscal year
Address (Number and Street)
Short taxable year
Address Continued
City, State, and ZIP Code
0 0
$
.
I declare that this return (including accompanying schedules and statements) has been examined
Amount of Payment
by me and to the best of my knowledge and belief is true, correct, and complete.
Signature
Date
Phone Number
entity claiming this exemption must provide a statement to
Change of Address/Out-of-Business
the PTE stating that it has diplomatic immunity from federal
If the PTE changes its business mailing address or discontinues
income tax.
the business, either send a completed Form R-3, Registration
Change Request or a letter to the Virginia Department of Taxation,
Real estate investment trusts (REITs) except Captive REITs.
P.O. Box 1114, Richmond, Virginia 23218-1114. A Form R-3 can be
Corporations that are exempt from Virginia income tax include:
obtained from the Department’s website, www.tax.virginia.gov, or by
Certain banks, insurance companies, and public utilities
calling the Department at (804) 367-8037.
that are subject to other taxes in lieu of Virginia income tax.
Questions
Corporations that are exempt from federal income tax
If you have any questions about this return, call (804) 367-8037 or write
under IRC § 501.
to the Virginia Department of Taxation, P.O. Box 1115, Richmond,
If a nonresident owner claims to be exempt from the withholding tax, the
Virginia 23218-1115.
PTE is required to obtain documentation from the nonresident owner
Preparation of Payment Voucher
setting forth the basis for the exemption. This documentation must be
retained by the PTE with its records.
Complete the PTE’s FEIN, entity type, North American Industry
Classification System (NAICS) code, ending month and year, and name
The determination of nonresident status will be based on the owner’s
and address information.
address of record for the PTE unless the PTE has other information
relating to the owner’s residence or commercial domicile by reason of
Entity type: A proper entry in this field is required. Enter the code that
the owner’s participation in management of the PTE. If an owner is also
corresponds to the type of entity that is filing this return.
employed by the PTE, the information relating to withholding on wages
Type
Code
will also be considered.
S Corporation
SC
The PTE must provide with its return of withholding tax a list of every
General Partnership
PG
individual, corporation, and other entity claiming exemption from the
Limited Partnership
PL
withholding tax. The list must contain the name, social security number,
Limited Liability Company
LL
federal employer identification number (FEIN), or other taxpayer
identification number and the address of each nonresident owner
Limited Liability Partnership
LP
claiming exemption, as well as a description of the basis for the claimed
Other
OB
exemption.
NAICS code: Enter the 6-digit NAICS code. You can access a list of
Penalties
these codes by visiting the Businesses section on the Department’s
Extension Penalty – The PTE must pay at least 90% of the withholding
website, www.tax.virginia.gov.
tax due by the return due date to avoid a penalty. If the return is filed
Determine the amount of withholding due by either:
within the 6-month extension and less than 90% of the tax was paid by
(1) Computing the taxable income of the PTE and applying the pro rata
the original return due date, then the PTE owes an extension penalty.
share of the nonresident owners. Multiply the nonresident income
The penalty is 2% per month of the tax due with the return from the due
by 5% to calculate the tax liability. Then reduce the tax liability by
date through the date that the return is filed, up to a maximum of 12%.
the owner’s share of any tax credits.
Late Filing Penalty – If the return is filed after the extended due date,
(2) Computing the taxable income of the individual nonresident owners.
the extension is not valid, and the entity is subject to the late filing penalty
Calculate the tax liability of each owner by multiplying taxable
of 30% or $1,200, whichever is greater.
income by 5%. Reduce the tax liability by the owner’s share of tax
Late Payment Penalty – If the return is filed within the extended period
credits.
and full payment is not included with the return, the entity is subject to
Enter the total amount withheld for all nonresident owners in the block
the late payment penalty of 6% per month from the date the return is
indicating the amount of payment.
filed through the date of payment, up to a maximum of 30%.
Declaration and Signature
Interest – Interest is due on any unpaid tax at the underpayment rate
Be sure to sign, date, and enter your phone number in the space
under IRC § 6621, plus 2%, from the due date until paid.
indicated.
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