Income Tax Seminar Materials

You will receive the following materials included with your registration fee:

National Tax Income Tax Workbook, a 700+ page production of the Land Grant University Tax Education Foundation, Inc. (Chapters in this textbook are available ONLY to sponsors of tax schools and to participants in the tax schools as part of their educational material.)
U.S. Master Tax Guide, published by CCH. This valuable resource, which reflects all pertinent federal taxation changes that affect 2023 returns and provides fast and reliable answers to tax questions, would cost approximately $205.00 if purchased separately. This guide will be mailed separately as soon as it is available.
Kentucky Department of Revenue Update

Downloadable Materials

Download 2023 KY Department of Revenue Presentation

Questions with answers from the Webinar:

When will the Ky DOR allow individuals filing a Form 725 and/or extension to pay electronically?
- 725 Filers may currently make electronic payments for the Limited Liability Entity Tax through the Revenue.ky.gov website.
Does the KYDOR take the position that the PTET election can be made by a SMLLC filing a Federal Sch C?
- Yes. Under KY law, an SMLLC is a pass-through entity and is therefore eligible to make the PTET election.
If an S Corp shareholder is a trust which gets a PTET-CR, can the trust then pass that credit through to the trust beneficiary?
- A trust that is an owner, member, or shareholder of a pass-through entity may utilize the PTET-CR against any income tax owed by the trust or it may pass the PTET-CR through to its beneficiaries on the Form 741 Schedule K-1. By law, a trust is not a pass-through entity and therefore would not file a 740-PTET and/or issue PTET-CR forms to its beneficiaries.
Just to understand... we have to file a KY 725 AND a KY 740-PTET, if we elect to pay the tax at the entity level?
- Correct. The Form 725 is for the Limited Liability Entity Tax, which is separate and distinct from the PTET.
What is the advantage of the pass-through entities paying the tax if the tax rate is the same?
- The advantage is derived at the federal level.
Please explain how Section 7 of KRS 141.206 does not allow the KY PTE resident shareholders/partners to pay the PTET on 100% of income rather than apportioned distributable income.
- Section 7 of KRS 141.206 refers to the income tax liabilities of resident owners of pass-through entities. By making the election under KRS 141.209, a pass-through entity elects “to have the tax under KRS 141.020 imposed upon the electing entity” (KRS 141.209(2)(a)), thus making the entity itself the taxpayer rather than the individual owners. For an entity that is doing business both within and without Kentucky, KRS 141.206(11)(b) states “For taxable years beginning on or after January 1, 2018, a pass-through entity doing business within and without the state shall compute an apportionment fraction as provided in KRS 141.120.” In essence, the election means that we are longer looking at the tax liability of the individual and instead looking at the tax liability of the entity.
Is there any add-back of the PTET to the partners, members or shareholders?
- Yes and no. On the entity’s state return (Form PTE), the amount of PTET would be a state tax add-back, (Form PTE, Part 1, Line 2). It would not be a direct add-back on the individual return.
Are you saying the entity can pay the PTET tax on guaranteed payments?
- Yes. Kentucky regards guaranteed payments to partners in the calculation of distributive share income.
If you do not pay the PTET tax until the due date of the return and this is the only KY tax you owe on your 740 - will you be subject to under payment of estimated tax penalties if you had always paid estimated taxes in the past on this income?
- If the only tax owed is due to pass-through income and the PTET election is made and paid timely, then no penalties for underpayment of estimated individual income taxes will be assessed in tax years 2022 and 2023. The taxpayer should attach an explanation of the reason for not making estimated payments to their Form 740. Note that estimated PTET payments are required beginning in tax year 2024.