I have received 2 separate notices on this issue as of today. When I called IN, they said that on the form IT-65 line F if it shows nonresident partners greater than 0 then a composite return or PTET return is required even if no income. They wanted me to send them the Composite Schedule with the same number of nonresident partners listed under line F with the their share of the loss listed under Column C. The software won't generate that with a loss so I downloaded the form from the IN website and filled out manually and submitted.

Under E on page 1, they wanted the composite return checked.