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partnership tax returns

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Level 1

I have a partnership in which about half the partners are retirement plans.   It is an IL partnership but generates income (and losses) in multiple states, which is a problem of its own, but that's another complaint for another day.  The IL return is calculating and adding IL pass-through withholding on the out of state partners, many of which are retirement plans.  I understand that pass-through withholding must be paid for the out of state individuals, but there should be no tax due from the retirement plan partners.  How do I prevent the retirement plan partners from being assessed the pass-through withholding?

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2 Replies 2
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Level 15

Just guessing - Is the Partner Information set to Exempt for Type of Entity?

@kreinard may have some input


ex-AllStar
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Level 15

 And have you given these tax exempt partners their UBIT info?


ex-AllStar