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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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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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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
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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.