Pass-through entities subject to pass-through entity withholding are not required to withhold on members who submit certification, on a form approved by the Commissioner, that the member is exempt from withholding. The due date for this exemption certificate, the Form PTE-EX, was previously set at the last day of the first month of the entity's taxable year, or within thirty days of the member joining the entity. The Commissioner is changing this requirement to allow more time for pass-through entities to comply. The new date by which members must file their Forms PTE-EX with the pass-through entity is the later of the last day of the fourth month of the entity's taxable year, or within thirty days of the member joining the entity.
In addition, the Commissioner will no longer require that a new Form PTE-EX be filed annually. Taxpayers who have already signed a Form PTE-EX but who wish to use the Form PTE-EX certification for future years should sign the revised Form PTE-EX now available on DOR's website. The previous version of the Form PTE-EX is valid for the tax year beginning on or after January 1, 2009, but must be renewed, using the revised version, for the next tax year.
The Commissioner intends to make conforming changes to the Pass-Through Entity Withholding Regulation, 830 CMR 62B.2.2.