1065 K-1 State of Colorado Non-resident Partner

[Rindys Tax]

On the 1065 state return for Colorado, I am filing in the information for a partner that is a non-resident of Colorado. It is asking about a composite filing or need to file DR107 or DR108? I researched and I believe that none of these apply. It is a Non-resident partner, each of these forms says that the partnership will pay the tax. It should be paid by the partner on their individual tax return. Right? 

[sjrcpa · Accepted solution]

Unless some exception applies I believe you will find that the partnership either needs to file a composite return and pay CO tax on behalf of the nonresident partners or withhold CO tax for the nonresidents. I go with the composite return since CO makes this easy.

[Rindys Tax]

I have filed this clients return before but with a different software. I have never been asked this before. So this information doesn't flow to the K-1 for each partner?

[sjrcpa]

Whether a composite return is filed or tax was withheld should be disclosed on their CO K-1. I don't know if ProSeries does it automatically or if you need to enter it manually.