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Composite Tax Filing - AL & LA - No Tax Due

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Level 7

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.

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Level 8

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. 

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Level 7

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;

  1. 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

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Level 8

 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. 

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