Logic tells me one thing, research confirms nothing. Can anyone confirm that a pass-through entity with nonresident members that generates a LOSS and obviously has no tax due does or does not have to file a composite tax return in Alabama and in Louisiana? I've called both AL and LA Dept of Revenue but the initial level of support was clueless.
i have a client that files both of those states ( along with a few others), each year. The incomes if any are minimal...and we only do the Composite Tax Return (send money), when there is a profit/tax due applicable to them. Have for many years. They ain't come after us yet.
Received an email from the LA Department of Revenue that doesn't exactly answer the question but appears to contradict what you said, which is why I asked the question. What answer is correct?
Per R-6922 Instructions:
WHO MUST FILE
Partnerships engaging in activities in Louisiana that have nonresident partners are required to file a composite partnership return unless;
- All nonresident partners are corporations, partnerships, or tax exempt trusts; or
b. All nonresident individual, estate, and trust partners have a valid agreement on file with the Department of Revenue
I misread what you typed.........….PPP, EIDL, and a million 'just a quick questions' have about gotten the best of me. We DO file the PTE-C in Alabama every year...we just don't do the 'Composite Payment', the PTE-V unless we owe money(i.e. they had a positive income in Bama). Same thing in Louisiana, we file the R-6922 each year...just don't file the R-6922V unless we owed money in that state..(i.e. had a profit). I am sorry for the confusion. All on me.