How to allocate Louisiana S-Corp Withholding Tax to Shareholders

[rosael]

My client is a NYS S-Corp in the film industry. They performed services in Louisiana for an unrelated film company based in Louisiana which withheld tax on a 1099-NEC. The income was under the exemption threshold so no corporate tax is due. How do I allocate the withholding tax to the shareholder in ProSeries since there is no LA K1.

Thanks in advance for your help.

[sjrcpa]

Maybe you should file a Louisiana S Corp return even if not required. Then there will be a K-1 with withholding.

[rosael]

Unfortunately, there is no S-Corp return or K1 for Louisiana since that state does not recognize S-Corp status.

[sjrcpa]

Then file a Corporate return and get the withholding refunded. I don't see how the shareholder can claim it.

Obviously I only do Louisiana individual and partnership returns. 😀

[rosael]

That is my last resort. Just hoping someone else might have another suggestion so the shareholder doesn't have to shell out of his pocket to pay the individual tax when the state already has the funds.