April 3, 2023 Kentucky enacts technical corrections to elective pass-through entity tax On March 31, 2023, Governor Andy Beshear signed House Bill 5 (HB 5) into law, supplementing the recently enacted elective pass-through entity (PTE) tax adopted in House Bill 360 (see Tax Alert 2023-0571). HB 5 makes a number of clarifying changes, including:
HB 5's provisions on the elective PTE tax became effective upon the Governor's signature. Implications HB 5 makes technical corrections, so that Kentucky's elective PTE tax complies with the guidance issued in IRS Notice 2020-75. It is anticipated that the Kentucky Department of Revenue will be issuing guidance and forms in the coming weeks and months. ———————————————
Published by NTD’s Tax Technical Knowledge Services group; Jennifer A Brittenham, legal editor ——————————————— 1 Defined as any individual with the authority from the electing entity to bind the electing entity or to sign returns on its behalf. 2 Ky. Rev. Stat. 141.206. | |||||