Louisiana Return

[WhiteOleander]

Can anyone explain the concept of the composite return for LA? Below is a copy of part of the section I am referring to:

47:201.1.A.
47:201.1.A.(1) Beginning January 1, 2001, each entity treated as a partnership for state income tax
purposes which engages in activities in this state shall file composite returns and make composite
payment of tax on behalf of any or all of its nonresident partners or members who do not agree to file an
individual return as provided for in Subsection C of this Section.

Thanks

[mastertaxguy]

From instructions:

Partnerships engaging in activities in Louisiana that have nonresident partners are required to file a composite partnership return unless
a. All nonresident partners are corporations, partnerships or tax exempt trusts; or
b. All nonresident individual partners have a valid agreement on file with the Department of Revenue

The concept seems to be to tax non-resident individual partners who get partnership distriubtions or allocations of income.

[Redneck]

just received this from LA

http://www.rev.state.la.us/forms/lawspolicies/1401RUL027.pdf

[WhiteOleander]

OK, I think I have this figured out. It appears that the ptrship has to file this composite return and pay tax on the distributive share of the resident and non-resident partners.

If the tax is paid for a non-resident, does the non-resident have to file their own return also, or is the tax considered paid?

I called Louisiana Dept of Revenue. They will not answer the question now. Someone will have to call me back within 72 hrs. Gee, thanks a lot.