|Posted:||December 19, 2016 10:05 AM|
|From:||Representative R. Lee James|
|To:||All House members|
|Subject:||Non-Resident Beneficiary Income Withholding (Former HB 1165)|
|I am preparing to reintroduce legislation that would amend the Tax Reform Code of 1971 to make minor corrections to the provisions that were intended to enhance pass-through business compliance. This proposal will provide efficiencies to trust and estate administration in Pennsylvania.
As you may know, Act 52 of 2013 made omnibus amendments to the Tax Reform Code. Among these amendments, language was included that required an estate or trust to withhold personal income tax from PA source income on behalf of a non-resident beneficiary. While this provision may make sense in many cases, the new language is broadly applied, and it is not always simple or cost effective for an estate or trust to withhold income tax for a non-resident.
My legislation would make two minor changes that are intended to make this withholding requirement easier to comply with:
Previous co-sponsors: SAINATO, MILLARD, DIAMOND, KINSEY, FEE, CORBIN, CUTLER, ROSS, MURT, GABLER, QUIGLEY, EVANKOVICH, DUNBAR, GIBBONS, LONGIETTI, A. HARRIS, MILNE, TRUITT, PEIFER, BLOOM, RAPP and ENGLISH
Introduced as HB233