FormPW-2: FormPW-2 (2024)
Wisconsin · Wisconsin DOR · Used for tax years 2024
Wisconsin Form PW-2 is an affidavit nonresident partners, members, shareholders, or beneficiaries use to request an exemption from withholding on pass-through income. It reports the owner's Wisconsin income and credits from each pass-through entity and the reasons for requesting
Who files this form
Form PW-2 is for nonresident partners, members, shareholders, or beneficiaries requesting an exemption from withholding on income from a pass-through entity.
The nonresident owner must file the request. A pass-through entity may not file it on behalf of its owners.
Owners with less than $2,000 of Wisconsin source income from a pass-through entity should not file Form PW-2. The entity is already exempt from withholding for those owners.
When it's due
For the 2024 form, the printed deadlines are:
- Tax-option (S) corporations and partnerships: One month after the close of the entity’s taxable year.
- Estates and trusts: Two months after the close of the entity’s taxable year.
Form PW-2 will not be accepted if filed after the due date.
What you'll need
Have the following information ready:
- The nonresident owner’s name, address, SSN or FEIN, taxpayer type, and last day of the taxable year.
- The Wisconsin return form that will report the income. Grantor trusts, combined-return members, and disregarded entities must also provide the reporting taxpayer’s name and SSN or FEIN.
- Each pass-through entity’s name, address, FEIN or SSN, entity type, and last day of its taxable year.
- The owner’s share of Wisconsin income and credits from each entity.
- Information supporting the exemption reason, such as estimated payments, a prior-year overpayment applied, Wisconsin loss carryforwards, or credits.
If claiming more than one credit under Part 5, item 3, include a schedule listing each credit’s name and amount and the source’s identification number, if applicable. Include an explanation if selecting “Other.”
For multiple pass-through entities, include a separate Part 3, Part 4, and Part 5 for each entity.
How to file
The sample form is marked “File Electronically.” It refers readers to the instructions for filing methods, but no instructions were provided here. The supplied form does not give an electronic filing address or a mailing address.
Complete the owner information, agreement to file, entity information, income and credit amounts, and applicable exemption reasons. Sign and date the affidavit.
If approved, provide the pass-through entity with a copy of the approved Form PW-2 and any response letters received from the Wisconsin Department of Revenue. The entity must continue withholding until it receives the approved form from you.
Common mistakes
- Having the entity file for an owner. A pass-through entity may not file Form PW-2 on its owners’ behalf.
- Stopping withholding before approval is received. The entity must withhold until the owner gives it an approved Form PW-2.
- Filing when Wisconsin source income from the entity is less than $2,000. The form says these owners should not file because the entity is already exempt from withholding for them.
- Leaving out an explanation about estimated payments. If payments do not cover the income allocated by the entity after accounting for its credits, explain why you believe the payments are sufficient.
- Claiming a loss carryforward without the required prior returns. Do not check Part 5, item 2, unless Wisconsin income or franchise tax returns were filed for every loss year that produced the carryforward.
- Using only one set of entity sections for several entities. Complete separate Parts 3, 4, and 5 for each entity.
Questions people ask
Does an approved withholding exemption mean I do not have to file a Wisconsin tax return?
No. By signing the affidavit, you agree to timely file a Wisconsin income or franchise tax return for the tax year provided in Part 1.
Can I request exemptions for more than one pass-through entity?
Yes. State the number of entities and include separate Parts 3, 4, and 5 for each one.
How will I learn whether my request was approved?
The Wisconsin Department of Revenue will notify you of approval or denial. You are responsible for notifying the pass-through entity about an approved exemption.
Can I appeal the approval or denial?
No. The affidavit states that approval or denial may not be appealed and does not constitute an audit by the department.
Can another person discuss this return with the department?
Yes. Select “Yes” in the Third Party Designee section and provide the designee’s name, phone number, and personal identification number (PIN).