Composite Returns and Nonresident Withholding for Pass-Through Entities: Navigating the Multistate Complexities

Determining Whether to File Composite Returns, Dealing With Withholding Requirements

A live 110-minute CPE webinar with interactive Q&A

Tuesday, May 1, 2018 (in 8 days)

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

or call 1-800-926-7926
Add to your calendar

This webinar will offer tax professionals a deep dive into composite tax provisions and withholding requirements of pass-through entities with nonresident shareholders and/or partners. The panel will provide an advanced-level look at the specific issues facing tax advisers to pass-through entities regarding composite returns and withholding requirements for pass-through entities that have nonresident shareholders.

Description

Tax advisers working with pass-through entities must navigate the landscape of reporting and withholding where the pass-through entity has nonresident shareholders or partners. Advisers must consider whether to file a composite return, and filing composites may not be the best option for some pass-throughs.

While states differ in terms of their regimes for collecting tax from nonresident shareholders of pass-through entities, there are common themes. Most states have some sort of mandatory withholding scheme; however, some states provide the option to elect out of mandatory withholding, generally through filing composite tax returns.

A principal benefit of filing a composite return is the convenience for partners or shareholders in avoiding the filing of nonresident state income tax returns. This benefit is frequently offset by states, particularly those with high top marginal rates, imposing tax at the top rate on income reported on a composite return.

Further, a composite return may preclude an individual shareholder from claiming credits or deductions that may apply if the taxpayer filed a nonresident return. Tax advisers must understand various tax impacts to determine whether to advise filing a composite return.

Listen as our experienced panel offers a comprehensive view of states’ approaches to taxing corporations on multistate partnership income.

READ MORE

Outline

  1. Landscape of withholding requirements and composite returns
  2. Withholding requirements on nonresident shareholders/partners
  3. Measures to enforce nonresident filing and payment of taxes
  4. Mechanics of electing and filing composite returns
  5. Taxation of disposition of interest by nonresident
  6. Tax reporting and planning issues specific to S corporations
  7. Elections and strategies

Benefits

The panel will discuss these and other important questions:

  • Which states offer elections other than defaulting to withholding on nonresident partners or shareholders?
  • What are the built-in exceptions to withholding requirements for pass-through entities with nonresident shareholders?
  • Which states offer the option of electing to file composite returns? Which states require composites?
  • When should a pass-through entity not elect to file a composite return?
  • What are the specific risks to identify and avoid in withholding for nonresident shareholders or partners?

Faculty

Weinkle, Jeff
Jeff Weinkle, CPA
Manager, State & Local Tax
Aprio

Mr. Weinkle specializes in state and local taxation and has experience in assisting domestic and international clients...  |  Read More

Brown, William
William C. Brown
Atty
BrownWinick

Mr. Brown has practiced law in the areas of taxation, securities, business planning, estate planning and banking for...  |  Read More

Live Webinar

Buy Live Webinar
CPE credit processing is available for an additional fee of $35. CPE processing must be ordered prior to the event.
See NASBA details.

Live Webinar

$147

Live Webinar & CPE Processing

$182

Buy Live Webinar & Recording
A savings of $100

Live Webinar & Download

$194

Other Formats
— Anytime, Anywhere

Download

48 hours after event

$147