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When are the partners, shareholders or members responsible for paying their own tax instead of being subject to withholding?

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When are the partners, shareholders or members responsible for paying their own tax instead of being subject to withholding?

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A partner, shareholder or member who completes the I-309 Nonresident Shareholder or Partner Affidavit and Agreement, Income Tax Withholding directs the partnership, S-corporation or LLC not to withhold and places all of the compliance requirements on the partner, shareholder or member.

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