This is a reminder that Assembly Bill 150 (AB 150) allows Passthrough Entities to have tax paid at the entity level rather than the individual level which permits PTE owners to bypass the deduction limitation.
Single Member LLCs are not considered PTEs under AB 150.
A payment not made by June 15th will result in the election not being made, and the passthrough entity and owners will not be eligible to participate in the program for that corresponding tax year.
If the owners of the PTE are fairly certain they will want to participate in the PTE program for 2023, we are recommending that at least $1,000 be paid by June 15, 2023, for each participating entity.
Entities that made the PTE election for 2022 and would like to make the election for 2023 as well must pay $1,000 or 50% of the elective tax paid for the prior taxable year, whichever is greater.
Payment instructions are below:
- Enter Entity Type: Corporation for S-Corps, LLC, or Partnership. Click Continue
- Enter Entity ID#: The Entity ID# Can be found on the first page of the entity’s State Tax Return. Form 100S for S-Corps, Form 565 for Partnerships, or Form 568 for LLC’s. 7, 9, or 12 digits. Click Continue
- The Entity ID/Name will be auto-populated.
- Please note that for Partnerships the only allowed characters for the name of Entity are letters, numbers, dashes, spaces, periods and forward slashes. e.g. M&M, LLP should be entered as M AND M LLP
- Entered Personal Contact Info and click Continue.
- For S-Corps Select Form 100S for Tax Form and click Continue. For Partnerships/LLC’s this step is not required.
- Select Pass-Through Entity Elective Tax (Form 3893) and click Continue.
- Select January 01 2023 For Period Beginning Date and December 31 2023for Period Ending Date.
- Enter 1000.00 for Payment Amount.
- Enter date on or before 06/15/2023 and click Continue.
- Enter the Routing #, Account #, Account Type and Click Continue.
- Please save payment confirmation and send a copy to MWA.
If you have any questions, please give us a call. As always, we appreciate your business.