§ 47:287.732.1 — Composite returns for nonresident shareholders

Louisiana § 47:287.732.1

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§287.732.1. Composite returns for nonresident shareholders
A. For purposes of this Section, the following terms shall have the meanings ascribed
to them in this Subsection:
(1) "Composite payment" means a payment filed with a composite return which
remits the Louisiana income tax of an S corporation's nonresident shareholder.
(2) "Composite return" means a return filed by an entity treated as an S corporation
on behalf of all of its nonresident shareholders which reports and remits the Louisiana
income tax of the nonresident shareholder.
(3) "Department" means the Department of Revenue.
(4) "Income attributable to the state" means items of income, loss, deduction or credit
of the S corporation apportionable and allocable to this state pursuant to this Part.
(5) "S corporation" means a corporation for which a valid election under Section
1362(a) of the Code is in effect.
B.(1) Beginning January 1, 2026, each entity treated as an S corporation for federal
income tax purposes which engages in activities in this state may file composite returns and
make composite payment of tax on behalf of any or all of its nonresident shareholders.
(2) The payment referred to in Paragraph (1) of this Subsection shall be in an amount
equal to the maximum tax rate provided for individuals or trusts and estates, as applicable,
multiplied by the nonresident shareholder's share of the S corporation's income attributable
to this state, as reflected on the S corporation's return for the taxable period.
(3) Any amount paid by the S corporation to the state pursuant to this Subsection
shall be considered to be a payment by the nonresident shareholder on account of the income
tax imposed on the nonresident shareholder for the taxable period. To the extent that the
payment made on behalf of the nonresident shareholder exceeds the income tax liability of
the nonresident shareholder, that nonresident shareholder shall be entitled to a refund, or may
elect to utilize the excess as a credit against amounts that may be paid by the S corporation
on his behalf with respect to subsequent taxable periods.
(4) A nonresident shareholder in an S corporation shall not be required to file a
Louisiana income tax return when the only income from Louisiana sources is the
shareholder's share of the S corporation's income attributable to this state for the taxable
period and the S corporation pays the tax on the shareholder's behalf pursuant to this Section.
C. Credits and overpayments claimed on composite returns.
(1) Notwithstanding the provisions of R.S. 47:1675(F) or any other provision of law
to the contrary, when a composite return is filed, each nonresident shareholder of the S
corporation shall claim his respective share of any credit earned by the S corporation for the
applicable tax period in which the credit was earned.
(2) Credits claimed on a composite return shall not be allowed or claimed on any
other return submitted on behalf of or by a shareholder for the same taxable period.
(3) When a composite return reflects an overpayment that is determined to be correct
by the department, the overpayment shall be paid to the S corporation that filed the
composite return.
(4) Composite returns shall be filed electronically. The department may promulgate
rules and regulations in accordance with the Administrative Procedure Act necessary for
implementation of this Paragraph and may further define and require the necessary methods
for filing, signing, subscribing, or verifying a return, statement, or other documents required
for such implementation.

Legislative History

Acts 2002, No. 17, §1, eff. for taxable periods beginning after Dec. 31, 2002; Acts 2025, No. 382, §1, eff. June 20, 2025.