NC-NPA: Nonresident Partner Affirmation (2024)

Who files this form

Form NC-NPA is an annual affirmation for eligible nonresident partners. In general, a partnership must pay tax on behalf of its nonresident partners. An eligible partner can timely complete this form so the partnership is not required to pay that tax on the partner’s behalf.

For the 2024 form, eligibility depends on the partner’s status:

• Partner in a Taxed Partnership: Only a corporation or partnership is eligible.
• Partner not in a Taxed Partnership: A partner is eligible if it is not an individual or a grantor trust. This exclusion also applies when an individual or grantor trust is the beneficial owner of a disregarded entity.

What you'll need

Have the following information ready to complete the form:

• The partnership’s name, address, ZIP code, federal employer ID number, and tax-year beginning and ending dates.
• The nonresident partner’s name, address, ZIP code, identifying number, entity type, and tax-year beginning and ending dates.
• The date the nonresident became a partner.
• If the partner is a disregarded entity, the beneficial owner’s information, plus the disregarded entity’s name and taxpayer identification number.
• The manager’s, officer’s, or fiduciary’s signature, signing date, and contact number.

How to file

1. Answer the eligibility questions, following the directions for which question to answer next.
2. Enter the partnership and nonresident partner information, and fill in the applicable entity-type circle.
3. Select the applicable affirmation: the partner will timely file the appropriate North Carolina income tax return and pay the tax due, or the partner is not subject to North Carolina income tax.
4. Have the manager, officer, or fiduciary sign and date the form and provide a contact number.
5. File Form NC-NPA annually and submit it with the partnership return on or before that return’s due date.

The supplied text does not give a mailing address or e-file directions.

Common mistakes

• Choosing an LLC’s entity type incorrectly: Use the circle that matches the LLC’s federal tax classification.
• Leaving out beneficial-owner information: If the nonresident partner is a disregarded entity, enter the beneficial owner’s information. Also provide the disregarded entity’s name and taxpayer identification number.
• Completing the form when ineligible: Individuals and grantor trusts are not eligible, including those that are beneficial owners of disregarded entities. For a partner in a Taxed Partnership, only a corporation or partnership is eligible.
• Assuming the partnership’s tax payment replaces the partner’s return: Payment by the partnership on behalf of a corporation, partnership, non-grantor trust, or estate does not relieve that partner from filing a North Carolina tax return.

Questions people ask

Does Form NC-NPA need to be filed every year?

Yes. The nonresident partner must file it annually, and it must be submitted with the partnership return.

Does the signed form also apply to amended returns?

Yes. The signed form applies to the original return, any amended returns for that year, and any proposed assessments of additional tax for that year.

Can a partner affirm that it is not subject to North Carolina income tax?

Yes. The form includes that affirmation as an option.

If the partnership pays tax for the partner, does the partner still need to file a return?

Payment by the partnership on behalf of a corporation, partnership, non-grantor trust, or estate does not relieve that partner from filing a North Carolina tax return.

Official sources

• https://www.ncdor.gov/2024-d-403-nc-npa-nonresident-partner-affirmation/open