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01/13/21 REVISOR EAP/HR 21-01750 <br />16.1 for recording the lien. The notice has the force and effect of a levy under section 270C.67, <br />16.2 and is enforceable against the partnership in the manner provided by that section. Upon <br />16.3 payment in full of the liability subsequent to the notice of lien, the partnership must be <br />16.4 notified that the lien has been satisfied. <br />16.5 EFFECTIVE DATE. This section is effective for taxable years beginning after December <br />16.6 31, 2020. <br />16.7 Sec. 14. Minnesota Statutes 2020, section 290.92, subdivision 4c, is amended to read: <br />16.8 Subd. 4c. Withholding by S corporations. (a) A corporation having a valid election in <br />16.9 effect under section 290.9725 shall deduct and withhold a tax as provided in paragraph (b) <br />16.10 for nonresident individual shareholders their share of the corporation's income for the taxable <br />16.11 year. <br />16.12 (b) The amount of tax withheld is determined by multiplying the amount of income <br />16.13 allocable to Minnesota under section 290.17 by the highest rate used to determine the income <br />16.14 tax liability of an individual under section 290.06, subdivision 2c, except that the amount <br />16.15 of tax withheld may be determined by the commissioner if the shareholder submits a <br />16.16 withholding exemption certificate under subdivision 5. <br />16.17 (c) Notwithstanding paragraph (a), a corporation is not required to deduct and withhold <br />16.18 tax for a nonresident shareholder, if: <br />16.19 (1) the shareholder elects to have the tax due paid as part of the corporation's composite <br />16.20 return under section 289A.08, subdivision 7; <br />16.21 (2) the shareholder has Minnesota assignable federal adjusted gross income from the <br />16.22 corporation of less than $1,000; Of <br />16.23 (3) the corporation is liquidated or terminated, the income was generated by a transaction <br />16.24 related to the termination or liquidation, and no cash or other property was distributed in <br />16.25 the current or prior taxable year; or <br />16.26 (4) the S corporation has elected to be taxed as a C-option corporation under section <br />16.27 289A.08, subdivision 7a. <br />16.28 (d) For purposes of sections 270C.60, 289A.09, subdivision 2, 289A.20, subdivision 2, <br />16.29 paragraph (c), 289A.50, 289A.56, 289A.60, and 289A.63, a corporation is considered an <br />16.30 employer. <br />16.31 EFFECTIVE DATE. This section is effective for taxable years beginning after December <br />16.32 31, 2020. <br />Sec. 14. 16 <br />