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11. What if I am operating at a loss?

If a pass-through entity incurs a net loss for the current or prior taxable year, that entity does not have to register with MRS or withhold from any nonresident member until the year subsequent to the year in which income is realized. If a pass-through entity is registered with Maine Revenue Services and incurs a loss in a subsequent year, the entity must still file quarterly returns for the year, showing $0 withheld or they must cancel the pass-through entity withholding account. The entity must re-register if it becomes subject to the withholding requirement at a later date.