Hoosier businesses and preparers reminded to avoid penalties on composite returns

INDIANA — As the extension filing season approaches, the Indiana Department of Revenue is reminding businesses and tax preparers that all nonresident partners, shareholders, or beneficiaries must be included in pass-through entity composite returns, even if the entity is reporting a loss. Failure to do so will result in an automatic $500 penalty per pass-through entity.

How to Avoid Penalties

To avoid the penalty, filers should ensure that the number of nonresidents reported in the header of the return matches the total number of entity owners on Schedule Composite, Schedule PTET, and/or Schedule Composite-COR. The appropriate schedule(s) must also be included with the return and completed with the individual’s SSN or the corporation’s FEIN, regardless of whether the entity has income o