Okla. Stat. tit. 68, § 68-2385.30

Quarterly estimated payments – Written statement of taxable income

upon which withholding was based and tax withheld.

A. A pass-through entity shall withhold income tax at the

highest Oklahoma marginal individual income tax rate pursuant to

Section 2355 of this title from a nonresident member's share of the

Oklahoma share of income of the entity distributed to each

nonresident member and pay the withheld amount on or before the due

date of the pass-through entity's income tax return, including

extensions.

The pass-through entity shall file a return with each payment to

the Oklahoma Tax Commission. The return, in a form prescribed by

the Tax Commission, shall show the amount of the Oklahoma taxable

income upon which withholding was based and the amount withheld.

B. A pass-through entity may make quarterly estimated payments

for the taxable year and a pass-through entity shall be required to

make quarterly estimated payments for the taxable year if the amount

that must be withheld from all nonresident members for the taxable

year can reasonably be expected to exceed Five Hundred Dollars

($500.00). The estimated tax payments shall be paid in equal

quarterly installments on or before the last day of the month

succeeding the calendar quarter. The total of quarterly estimated

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1089

payments required to be paid by a pass-through entity for the

taxable year shall be the lesser of:

1. Seventy percent (70%) of the withholding tax that must be

withheld from all its nonresident members for the taxable year; or

2. One hundred percent (100%) of the withholding tax that had

to be withheld from all of its nonresident members for the preceding

taxable year.

The provisions of this subsection shall not relieve a pass-

through entity from the requirement of remitting amounts to the Tax

Commission that were actually withheld from distributions.

C. The amount of income tax withheld shall be allowed as a

credit to the recipient of the income as income taxes paid.

D. A pass-through entity shall not be required to withhold

income tax from an entity exempt pursuant to subsection C of Section

2359 of this title or Section 501(c)(3) of the Internal Revenue

Code, 26 U.S.C., Section 501(c)(3).

E. Every pass-through entity required pursuant to this section

to withhold income tax shall furnish to its nonresident member and

to the Tax Commission annually, but not later than the due date of

the pass-through entity's income tax return for the taxable year

including extensions, a written statement of the amount of taxable

income upon which withholding was based and of the tax withheld on

behalf of the nonresident member on forms prescribed by the Tax

Commission. The written statement shall show the name of member,

the applicable Social Security number or federal identification

number, the amount of the nonresident member's share of Oklahoma

taxable income upon which withholding was based, the amounts

withheld, and any such information as may be required by the Tax

Commission.

F. If the Tax Commission, in any case, has justifiable reason

to believe that the collection of the amount required in subsection

A of this section is in jeopardy, the Tax Commission may require a

pass-through entity to file a return and pay the withheld amounts at

any time.

G. All amounts received by the Tax Commission pursuant to the

provisions of Sections 2385.29 through 2385.31 of this title shall

be deposited as provided by Section 2385.16 of this title.

H. Notwithstanding the provisions of subsection A of this

section, a pass-through entity is not required to withhold tax for a

nonresident member if:

1. The Tax Commission has determined, by rule, that the income

of the nonresident member is not subject to withholding;

2. The nonresident member files an affidavit with the Tax

Commission, in the form and manner prescribed by the Tax Commission,
Notwithstanding the provisions of subsection A of this

section, a pass-through entity is not required to withhold tax for a

nonresident member if:

1. The Tax Commission has determined, by rule, that the income

of the nonresident member is not subject to withholding;

2. The nonresident member files an affidavit with the Tax

Commission, in the form and manner prescribed by the Tax Commission,

whereby such nonresident member agrees to be subject to the personal

jurisdiction of the Tax Commission in the courts of this state for

the purpose of determining and collecting any Oklahoma taxes,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1090

including estimated tax payments, together with any related interest

and penalties. The Tax Commission may revoke an exemption granted

by this subsection at any time it determines that the nonresident

member is not abiding by the terms of the affidavit; or

3. The entity is a publicly traded partnership, as defined by

Section 7704(b) of the Internal Revenue Code, which is treated as a

partnership for the purposes of the Internal Revenue Code, and which

has agreed to file an annual information return reporting the name,

address, taxpayer identification number and other information

requested by the Tax Commission of each unitholder with an income in

the state in excess of Five Hundred Dollars ($500.00).