If there are nonresident Partners in a partnership tax return filing, is there anything special you are required to file with the return?
Tax Professional Answers
There are several items that reduce the required withholding on effectively connected income, such as a treaty exemption, state and local taxes the partnership pays on behalf of the partner, and partner-level deductions and losses that the foreign partner certifies to the partnership on Form 8804-C. If the partner's investment in the partnership is the only activity producing effectively connected income and the withholding tax is less than $1,000, no withholding is required.
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