Form 1 309 PDF Details

Understanding the 1-309 form is essential for nonresident shareholders or partners generating income through S-corporations or partnerships in South Carolina. This form serves as both an affidavit and an agreement for income tax withholding, outlining several key commitments by the signee. Firstly, it identifies the individual as a nonresident who is receiving income from a South Carolina source, requiring them to provide personal details, such as name, address, and taxpayer identification number. It then specifies the nature of the income covered by this agreement. Importantly, the form binds the signee to file all necessary tax returns and pay any applicable South Carolina taxes on time. It also establishes the jurisdiction of South Carolina's Department of Revenue and courts over the individual for tax purposes, ensuring compliance with state tax laws, interest, and penalties. Furthermore, it mentions that the agreement affects heirs and successors, highlighting the seriousness of the commitment. The document also underscores the potential for revocation of any withholding exemption if the signee fails to adhere to the outlined terms. By completing this form, nonresident shareholders or partners can request exemption from standard withholding requirements, provided they meet certain conditions, thus making it a crucial document for managing tax liabilities in South Carolina.

QuestionAnswer
Form NameForm 1 309
Form Length2 pages
Fillable?No
Fillable fields0
Avg. time to fill out30 sec
Other namesNONRESIDENT, certifies, successors, sc 1 309 form

Form Preview Example

 

 

 

 

 

 

 

 

194

 

 

 

 

 

STATE OF SOUTH CAROLINA

 

 

1-309

 

 

 

 

 

 

 

 

 

 

 

 

DEPARTMENT OF REVENUE

 

 

 

 

 

 

 

NONRESIDENT SHAREHOLDER OR

 

(11/94)

 

 

 

 

 

 

3313

 

 

 

 

 

 

 

 

 

 

 

 

 

PARTNER AFFlDAVIT AND AGREEMENT

 

 

 

 

 

 

 

INCOME TAX WITHHOLDING

 

 

 

The undersigned

 

taxpayer on oath, being first duly sworn, hereby certifies and

agrees as follows:

 

1.

I am a nonresident shareholder or partner.

 

 

 

 

My name is:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

My address

is:

 

 

 

 

 

 

 

 

 

 

 

 

 

(number and street)

 

 

 

(city, state, and zip code)

3.My social security number or taxpayer identification number is:

4.The type of income for which this affidavit and agreement applies is:

_______ Distributed or undistributed South Carolina income from an S-corporation.

Distributed or undistributed South Carolina income from a partnership.

The entity’s name is:

The entity’s address is:

(number and street)

(city, state, and zip code)

The entity’s taxpayer identification number is:

5. I agree to timely file appropriate returns and make payment of all South Carolina taxes required by law.

6.I agree that I am subject to the personal jurisdiction of the South Carolina Department of Revenue and the courts of South Carolina for the purpose of determining and collecting any South Carolina taxes, including estimated taxes, together with any related interest and penalties.

7. This agreement will be binding upon my heirs, representatives, assigns, successors, executors and administrators.

8.I understand the South Carolina Department of Revenue may revoke the withholding exemption granted under Code Section 12-9-40(E) at any time it determines I am not abiding by the terms of this agreement.

The undersigned understands that any false statement contained herein could be punished by fine, imprisonment, or both.

Recognizing that I am subject to the criminal penalties under Code Section 12-54-40(b) (6) (f) (5), I declare that I have examined this affidavit and agreement and, to the best of my knowledge and belief, it is true, correct and complete.

 

(Seal)

(Signature of shareholder or partner)

 

 

(Date)

(Name - Please print)

INSTRUCTIONS

NONRESIDENT SHAREHOLDER OR PARTNER AFFIDAVIT AND AGREEMENT

INCOME TAX WITHHOLDING

Requirement to Make Withholding Payments

Code Section 12-9-40 requires an S-corporation or partnership to withhold taxes at the rate of 5% on each nonresident shareholder’s or partner’s share of South Carolina taxable income. There are several exceptions to the withholding requirements. An S-corporation or partnership is not required to withhold income taxes with regard to any nonresident shareholder or partner (1) who submits an affidavit and agreement or (2) for which the S-corporation or partnership reports his income on a composite nonresident income tax return.

Purpose of Affidavit

The affidavit is used by a nonresident shareholder or partner to request an exemption from the withholding required pursuant to Code Section 12-9-40. The affidavit does not need to be completed by shareholders or partners for which the S-corporation or partnership will file a composite nonresident income tax return.

Who May Execute this Affidavit

Any nonresident shareholder or partner having South Carolina income from an S-corporation or partnership may submit the agreement to the S-corporation or partnership. Shareholder and partners whose income will be reported on a composite return are automatically exempt from withholding and are not required to submit an affidavit to the S-corporation or partnership. Any income, tax due must be paid by the unextended due date of the composite return and is subject to the declaration of estimated tax rules.

Where and When to Execute this Affidavit

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Shareholder or Partner Instructions:

A shareholder or partner should fully complete the affidavit and submit it directly to the S-corporation or partnership. The affidavit should be signed by an officer of a corporate partner. A separate affidavit must be submitted by each partner or shareholder for stock that is jointly owned.

The affidavit is valid for all subsequent years and should not be resubmitted to the entity as long as (1) the shareholder’s or partner's nonresident status remains unchanged or (2) the withholding exemption is not revoked by the Department of Revenue.

S-corporation or Partnership Instructions:.

The S-corporation or partnership must remit all affidavits to the South Carolina Department of Revenue.

S-corporations should attach the affidavits to South Carolina form 1120S-WH (Withholding Tax on Income of Nonresident Shareholders) and file with the Department of Revenue on or before the fifteenth day of the third month following the close of the S-corporations tax year.

Partnerships should attach the affidavits to South Carolina form 1065 (partnership Return of Income) or form 4868 (Request for Extension of Time to File South Carolina TaX Return) and file with the Department of Revenue on or before the fifteenth day of the fourth month following the close of the partnerships tax year.

Affidavits remain valid for subsequent tax years and should only be filed with the Department of Revenue in the first year that the shareholder or partner submits an agreement to the entity.

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