About the Course
Introduction
This course will offer tax professionals a deep dive into composite tax provisions and the withholding requirements of pass-through entities with nonresident shareholders and partners. The panel will provide an advanced level look at the specific issues facing tax advisers to pass-through entities regarding composite return and withholding requirements.
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. While states differ in their requirements for collecting tax from nonresident shareholders and partners of pass-through entities, there are common themes. Most states have a mandatory withholding scheme; however, some states provide the option to elect out of mandatory withholding, in some cases through filing composite tax returns.
A principal benefit of filing a composite return is the convenience for partners or shareholders to avoid the filing of nonresident state income tax returns. This benefit is offset in certain states, particularly those with high top marginal rates, that impose the tax at the top rate on income reported on a composite return.
Further, a composite return may preclude an individual shareholder or partner 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 composite returns and nonresident withholding for pass-through entities.
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BARBRI is a NASBA CPE sponsor and this 60-minute webinar is accredited for 1.0 CPE credits.
Date + Time
- event
Thursday, August 6, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. The landscape of withholding requirements, composite returns, and partnership audit rules
II. Withholding requirements on nonresident shareholders/partners
III. Measures to enforce nonresident filing and payment of taxes
IV. Mechanics of electing and filing composite returns
V. Elections and strategies
VI. Taxation of the disposition of interest by nonresident shareholders/partners
VII. Tax reporting and planning issues specific to S corporations
VIII. State pass-through entity taxation (avoiding the SALT cap)
The panel will discuss these and other essential 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 partners or 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 withholding for nonresident partners or shareholders?
Learning Objectives
After completing this course, you will be able to:
- Identify alternatives to withholding for pass-through entities with nonresident partners or shareholders
- Recognize the states that allow or require composite tax return filings
- Determine the circumstances in which filing a composite return may not be the most advantageous tax strategy for PTE shareholders
- Pinpoint the issues specific to S corporations in the areas of tax reporting for nonresident shareholders
- Field of Study:
- Level of Knowledge:
- Advance Preparation: None
- Teaching Method: Seminar/Lecture
- Delivery Method: Group-Internet (via computer)
- Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
- Prerequisite:
Three years+ business or public firm experience at mid-level within the organization, preparing complex state income tax forms and schedules for individuals and pass-through entities; supervisory authority over other preparers/accountants. Knowledge and understanding of withholding requirements, composite returns, nonresident filing, and payment of taxes by pass-through entities.
BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
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