entity for which no such election is in effect.
(h) (1) Unless otherwise provided in this section, the
provisions of this article shall apply to this section.
(2) The department may issue guidelines and promulgate
regulations necessary for the implementation of this section.
(i) (1) In the case of any taxable year that includes the
effective date of this section, a pass-through entity may file
an election under subsection (b)(1) at any time within ninety
days of the effective date of this section provided that if the
election is made, the pass-through entity must, on or before the
date the next estimated tax payment is due after the election,
make an estimated tax payment equal to the total estimated tax
that would have been due for the tax year had the election been
made for the full tax year, and any nonresident withholding made
under section 324 by the pass-through entity for the current tax
year may be applied by the pass-through entity against its
estimated tax liability.
(2) In the case of any taxable year that includes the
effective date of this section, any nonresident withholding made
under section 324 by the pass-through entity for the current tax
year for an owner shall be applied by the pass-through entity
against its estimated tax liability.
(3) In the case of any taxable year that includes the
effective date of this section, the department may not assess
interest and penalties against an eligible pass-through entity
for any underpayment of estimated tax due under subsection (d),
so long as the eligible pass-through entity acted in good faith
with no intent to defraud the Commonwealth.
(j) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Electing pass-through entity." A pass-through entity that
elects at the time it makes its election to be subject to the
tax under this section to determine its tax in accordance with
subsection (a)(1), (4), (5), (6), (7) and (8).
"Electing resident Pennsylvania S corporation." A
Pennsylvania S corporation that is a pass-through entity whose
shareholders only include resident individuals, estates or
trusts, and disregarded entities whose owners only include
resident individuals, estates or trusts that elects at the time
it makes its election to be subject to the tax under this
section to determine its tax in accordance with subsection (a)
(2), (4), (5), (6), (7) and (8).
"Electing standard Pennsylvania S corporation." A
Pennsylvania S corporation that is a pass-through entity whose
shareholders only include resident and nonresident individuals,
estates or trusts, and disregarded entities whose owners only
include resident and nonresident individuals, estates or trusts
that elects at the time it makes its election to be subject to
the tax under this section to determine its tax in accordance
with subsection (a)(3), (4), (5), (6), (7) and (8).
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