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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Tuesday, July 30, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00
CPE
ALL

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.

Faculty

Kim Buresh
Director
Andersen, LLC

Ms. Buresh has over 12 years of experience in state and local tax. She provides corporate and high net worth clients with consulting services on a full range of state and local tax issues involving income/franchise taxes, sales/use taxes, gross receipts taxes, and unclaimed property. Ms. Buresh’s practice includes advising clients on state and local tax issues associated with tax refund and planning opportunities, tax controversies, corporate restructurings, mergers and acquisitions, voluntary disclosures, state residency, and credits and incentives. Prior to joining Andersen Tax, she was with Arthur Andersen and PwC.

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Ashley De Rada
Manager, WNT - SALT Income & Incentives
KPMG Law, LLP

Ms. De Rada is a Manager in KPMG’s Washington National Tax SALT Income & Incentives group based in Los Angeles. She has more than 5 years of experience in State and Local Tax with a wide range of industries but her primary focus is passthrough entity tax.

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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.

Outline

  1. The landscape of withholding requirements, composite returns, and partnership audit rules
  2. Withholding requirements on nonresident shareholders/partners
  3. Measures to enforce nonresident filing and payment of taxes
  4. Mechanics of electing and filing composite returns
  5. Elections and strategies
  6. Taxation of the disposition of interest by nonresident shareholders/partners
  7. Tax reporting and planning issues specific to S corporations
  8. State pass-through entity taxation (avoiding the SALT cap)

Benefits

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?

NASBA Details

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: Taxes
  • Level of Knowledge: Intermediate
  • 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.

Strafford Publications, 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.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).