Bivio Club Cafe:

I'm reviewing our Pennsylvania state return and I have some questions. I
tried to find answers in instructions on the Pennsylvania Revenue website
but they weren't helpful. I hope this is the right place to ask.

1) On the "Partner/Member/Shareholder Directory," the ownership percentages
printed as 8 digit numbers without decimals. This may be inconsequential,
but I assume I should redo these pages manually so that the percentages look
right.

2) On the RK-1 and NRK-1s, the five various ownership / profit / loss
percentages are all the same number. Last year, the Distribution % was 0.
Should it be 0 or the same as the other percentages?

3) We have 2 out-of-state members who reside in NJ. One of those members
withdrew in 2008. Her cash distribution shows on line 8 of her NRK-1. I
just wanted to confirm that this is correct because no other income or loss
numbers are reported in lines 1 through 18 for our non-resident partners.

4) I'm extremely confused by the PA-40 NRC-I form. It must be filed for
each non-resident individual electing to file on the PA-40 NRC. I can not
find good instructions for the PA-40 NRC and what it actually means to
"elect to file on the PA-40 NRC." This election sounds like something that
I need to inform our non-resident members of. On last year's form from
Bivio, the "Filing on PA-40NRC" election box was not checked. This year, it
is checked. Also, the instructions on the PA Revenue website state that I
send the PA-40 NRC-I form with the NRK-1s in a separate mailing to another
address and it is separate from the normal return. That isn't specified in
Bivio's mailing instructions. Any insight into this form would be extremely
appreciated.

Thank you so much for any help!!
Robbin Atwell
Duke & Duke Investment Club
Pennsylvania

M R Atwell wrote:
> 1) On the "Partner/Member/Shareholder Directory," the ownership percentages
> printed as 8 digit numbers without decimals. This may be inconsequential,
> but I assume I should redo these pages manually so that the percentages look
> right.

PA would like the percentage number submitted without a decimal point. They scan the data from the printed forms.

> 2) On the RK-1 and NRK-1s, the five various ownership / profit / loss
> percentages are all the same number. Last year, the Distribution % was 0.
> Should it be 0 or the same as the other percentages?

The distribution % only applies to estate or trusts, not partnerships.

> 3) We have 2 out-of-state members who reside in NJ. One of those members
> withdrew in 2008. Her cash distribution shows on line 8 of her NRK-1. I
> just wanted to confirm that this is correct because no other income or loss
> numbers are reported in lines 1 through 18 for our non-resident partners.

All of the investment club's income is sourced outside of PA, so a non-resident partner will show no PA income.

> On last year's form from
> Bivio, the "Filing on PA-40NRC" election box was not checked. This year, it
> is checked.

This has been corrected. Non residents investment club members are not required to file PA-40NRC.

Paul Moeller
bivio, Inc.