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Form PTE-K1-E2: Montana Schedule K-1, Part 5, Line 3a pass-through withholding is blank

Error

Form PTE-K1-E2: Montana Sch K-1, Part 5, line 3a Pass-Through withholding is blank.

Cause

Withholding is required for all second-tier pass-through entities. Withholding is also required for all owners that are a foreign C corporation, non-resident individual, non-resident trust or estate, or other non-resident entity that:
  1. has a distributive share of Montana income of $1,000 or more,
  2. didn't elect to be included in a composite tax return, and
  3. didn't have a valid Form PT-AGR on file.

Solution

Review the following conditions regarding MT K-1, Part 5, line 3a - MT income tax withheld on behalf of the owner.
  • Condition 1: Part 5, line 1 is less than $1,000.
  • Condition 2: Part 2, Composite checkbox is marked, or Part 2, PT-AGR checkbox is marked.
  • Condition 3: Part 2, Resident checkbox is marked.
  • Condition 4: Part 2, Entity type is C, or PTP.
Use:
  • Result 1: 6.9% of Part 5, line 1.
  • Result 2: 6.75% of Part 5, line 1.
If conditions 1, 2, 3 and 4 aren't true and Part 2, Entity type is: I, E, T, D, DOM, P or S, then Part 5, line 3a must equal result 1 FC or TE, then Part 5, line 3a needs to equal result 2.
If condition 3 is true, then Part 5, line 3a may equal result 1 or zero.
If condition 4 is true, then Part 5, line 3a may equal result 2 or zero. Otherwise, enter zero (0).
Once these necessary adjustments are made, perform a full recompute, recreate the e-file, then resubmit.
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