Must all nonresident shareholders, partners, or members be included on the composite return?
• No, only those who elect to do so are included.. Withholding is required on distributions paid or distributions credited to any nonresident shareholders, partners, or members who are not included on the composite return. • A nonresident is included in the entity’s composite return, and also files a separate Georgia income tax return. Can they receive credit for the composite income tax paid by the entity on their behalf? • The law does not provide for such a tax credit. In this situation, the entity must file an amended Form IT-CR to exclude that shareholder, partner or member, and must register for nonresident withholding (if not already registered) and request a transfer of the composite return overpayment to the nonresident withholding account. The entity then must furnish a withholding statement (Form G2-A) to the shareholder, partner, or member for the amount of the Georgia income tax payment transferred.
Related Questions
- Does Georgia allow the filing of a composite return for the nonresident shareholders, partners, or members of an s-corporation, partnership, LLC, or similar nontaxable entity?
- What are the withholding requirements on nonresident partners, S-corporation shareholders, and LLC members?
- Must all nonresident shareholders, partners, or members be included on the composite return?
