Form OW-15 Nonresident Member Withholding Exemption Affidavit

What Is Form OW-15?

Oklahoma Form OW-15, also known as the Nonresident Member Withholding Exemption Affidavit, is a document utilized by nonresident individuals, partnerships, or shareholders of S corporations. This affidavit is an assertion that the signer meets the requirements set by the Oklahoma Tax Commission (OTC) to claim an exemption from the state’s income tax withholding requirements.

Who Needs Oklahoma OTC Form OW-15?

Nonresident individuals involved in partnerships or those with income from S corporations in Oklahoma typically need to submit this form. Oklahoma OTC Form OW-15 is designed to declare that the nonresident's share of income from the entity is not subject to Oklahoma withholding tax because the nonresident is protected under a specific tax treaty or meets other set conditions designated by the OTC.

How to Fill Out the OTC Form OW 15

When the time comes to fill out Form OW-15, there are specific steps to ensure the form is completed correctly:

1. Provide your pass-through entity details, including the full legal name as well as its federal identification number in the designated fields. Add the complete address including city, state, and zip code.
2. Indicate the type of pass-through entity by marking the applicable checkbox. Your options include S-Corporation, Partnership, Limited Liability Company, Trust, or Other.
3. Enter your personal details as a nonresident member, which include your full name, social security number or federal identification number, and residential or business address.
4. Next, insert your name and declare your request to be exempt from Oklahoma income tax withholding.
5. If there is a revocation section, only complete this if applicable, stipulating your name and the current date to indicate you're revoking a previous exemption.
6. Lastly, provide your signature at the bottom of this OK form. Affix the current date next to your signature, and then furnish your contact details including a phone number and email address.

Why Entities Use the OK Form OW-15

Entities with nonresident members use the OK Form OW-15 to streamline their tax processes. This affidavit allows them to prove that the nonresident members are claiming responsibility for reporting and paying their Oklahoma income tax. It simplifies the withholding procedure for the entity and shifts the tax payment liability to the nonresident member. It’s imperative for entities to manage these forms diligently because inaccuracies or omissions can lead to complications with the state's tax commission.