Leaderboard

Better late than never? The FAQ on IP PINs changed recently: https://www.irs.gov/identity-theft-fraud-scams/frequently-asked-questions-about-the-identity-protection-personal-identification-number-ip-pin#q22

If the ptnrship delivered the goods or provided services within the state then it was conducting business within the state, and PA wants to know that and would issue a PA business license. I think catering service and/or food and beverage is subject to PA sales tax, but check on this to be sure. Was there employee involvement, possibly working an event, or just delivery of product? Maybe not, but asking to be thorough.

The partnership should have filed a PA-65 for any year that they EITHER had PA source income or had PA resident owners for this partnership. That is fairly clear in the "Who should file" section where it seems the partnership meets both the requirement to have had activity within PA during some years AND had PA resident owners. So, if they were PA residents the entire time this partnership existed since 2012, then the partnership should have filed for all of those years and should have also included either schedule RK-1 or NRK-1 depending on PA residency status. It may or may not affect the personal return because PA rules for some deductions differ from the federal, and I am not sure how you would have addressed that without filing the PA partnership returns and allocations of income within and without. Did the partnership register with PA to do business within the state? Hopefully this isn't going to be the opening of a giant can of worms! I can tell you a horror story from my earlier days in practice, not me personally but the firm I worked for. I am also on the border of PA, just west of Wilmington, DE, and I also have clients from all the surrounding states. I'm curious how this came up. I'm sorry, is it because former DIL has a new preparer for 2023 that asked for the back year returns?

Just to be more clear, when reading the instructions for state forms such as this one, the terms "domestic" and foreign" refers to within or without of the state, not domestic or foreign in terms of the USA. Form and its instructions are all in one document. Scroll down below form and see pg 2 of instructions "Who Must File" https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/Partnerships-S-Corps-LLCs/Documents/2022/2022_pa-20s-pa-65.pdf

Under what state laws/where was this parnership formed, actually a NY or PA partnership? It makes a difference whether or not it was a domestic partnership (formed in PA) operating bricks/mortar store solely in NY, or was a foreign partnership to PA having no income from PA sources but with PA resident owner (foreign to PA = meaning a partnership formed in another state but operating within PA).

And that's just for those who filed before 5/17/21. If you filed later, even without an extension, you have 3 years from the filing date.

IRS IP PINs are like herpes. Once you have one, you will always have one. And as others have already pointed out, you get a new IP PIN every year and it's for ALL returns filed during that year, regardless of which return you are filing.