03.04.07.04

.04 Statements to Nonresident Members.

A. Requirements. A pass-through entity shall provide each nonresident member with an income tax statement.

B. Form and Contents of Statement.

(1) Form. A pass-through entity may elect to use a:

(a) Maryland Form 510, Schedule K-1;

(b) Modified Federal Form K-1; or

(c) Statement prepared by the pass-through entity on its own form.

(2) Contents.

(a) Pass-through Entity Income Tax Statement. A pass-through entity that elects to use its own form as provided under §B(1)(b) of this regulation shall label the statement "Nonresident Member Income Tax Statement", and the statement shall contain the following:

(i) Name and address of the pass-through entity;

(ii) Federal employer identification number of the pass-through entity;

(iii) Maryland central registration number of the pass-through entity, if one has been issued;

(iv) Name and address of the nonresident member;

(v) Social Security number or federal employer identification number of the nonresident member;

(vi) Amount of the nonresident member's distributive or pro rata share of income attributable to Maryland sources;

(vii) Description and amount of Maryland addition and subtraction modifications allocated to the nonresident member;

(viii) Amount of the Maryland tax paid on behalf of the nonresident member; and

(ix) Description and amount of Maryland credits allocated to the nonresident member.

(b) Modified Form K-1. A pass-through entity that elects to use a modified Form K-1, in addition to the information provided for federal purposes, shall include the amount of the:

(i) Nonresident member's share of income attributable to Maryland sources;

(ii) Description and amount of addition and subtraction modifications allocated to the nonresident member;

(iii) Tax paid on behalf of the nonresident member; and

(iv) Description and amount of credits allocated to the nonresident member.