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MrD5
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Iowa LLC not paying tax for nonresident members who opt out of the composite return tax payment

According to this page from the Iowa Department of Revenue, nonresident LLC members can opt out of a composite return tax payment (provided they fill out a Nonresident Member Composite Agreement (41-175)).

 

Where can I make this election for members in Turbotax for Business?

 

Currently the K-1s being generated show that tax was paid on behalf of the members, but that is not true.

 

Note: Here is the relevant section from the page referred to above:

 

"A nonresident member who is not exempt from the requirement to have the pass-through entity pay composite tax on their behalf as described above may be excluded from the composite return tax payment requirement only if the nonresident member and pass-through entity complete and sign the Nonresident Member Composite Agreement (41-175). The completed agreement does not need to be filed with the Department, but it must be retained by the pass-through entity and provided to the Department upon request."

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