Agenda - Council - 02/08/2021 - Laserfiche WebLink

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01/13/21 REVISOR EAP/HR 21-01750 14.1 (b) A credit carryover generated by an individual taxpayer may be claimed by a C-option 14.2 corporation of which the individual is a partner, member, or shareholder. 14.3 Subd. 3. Refunds. (a) A C-option corporation may make a claim for a refund under 14.4 section 289A.50. Refunds must be paid to each partner, member, or shareholder in the same 14.5 manner as the distribution of the subtraction in section 290.0132, subdivision 30. 14.6 (b) For purposes of applying interest to refunds under paragraph (a), the amount refunded 14.7 bears interest under section 289A.56, subdivision 2, from the later of when the partner's, 14.8 member's, or shareholder's individual return is filed or when the C-option corporation's 14.9 return is filed. 14.10 Subd. 4. Estimated tax. (a) A C-option corporation must make payments of estimated 14.11 tax as required under section 289A.26. 14.12 (b) Payments of estimated tax under paragraph (a) made by a C-option corporation for 14.13 a taxable year for which the taxpayer is not a C-option corporation must be distributed to 14.14 each partner, member, or shareholder in the same manner as the distribution of the subtraction 14.15 in section 290.0132, subdivision 30. 14.16 EFFECTIVE DATE. This section is effective for taxable years beginning after December 14.17 31, 2020. 14.18 Sec. 13. Minnesota Statutes 2020, section 290.92, subdivision 4b, is amended to read: 14.19 Subd. 4b. Withholding by partnerships. (a) A partnership shall deduct and withhold 14.20 a tax as provided in paragraph (b) for nonresident individual partners based on their 14.21 distributive shares of partnership income for a taxable year of the partnership. 14.22 (b) The amount of tax withheld is determined by multiplying the partner's distributive 14.23 share allocable to Minnesota under section 290.17, paid or credited during the taxable year 14.24 by the highest rate used to determine the income tax liability for an individual under section 14.25 290.06, subdivision 2c, except that the amount of tax withheld may be determined by the 14.26 commissioner if the partner submits a withholding exemption certificate under subdivision 14.27 5. 14.28 (c) The commissioner may reduce or abate the tax withheld under this subdivision if the 14.29 partnership had reasonable cause to believe that no tax was due under this section. 14.30 (d) Notwithstanding paragraph (a), a partnership is not required to deduct and withhold 14.31 tax for a nonresident partner if: Sec. 13. 14