How do I prepare Iowa PTE-C with a 1065 return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax?
- Article Type:
- How To
- Last Modified:
- 02/08/2024
Objectives
Generate and populate Iowa Composite return tax calculation and payment voucher.
Environment
- CCH® ProSystem fx® Tax
- CCH Axcess™ Tax
- Partnership - 1065
- Iowa - IA
- Worksheet View - WSV
- Interview Forms
- Pass Through Entity Tax - PTE
Procedure
Pre-requisites
- Go to Common State > State PTE Generation worksheet > line Iowa (Interview PTE-ST1, Box 90) select the checkbox.
- Tax Year 2022 and forward.
- Or Iowa > PTE-C Composite Return worksheet > line X to Generate PTE Return, select the checkbox (Interview Form IA6, box 48).
- Tax Year 2022 only.
- Go to Partners > Partner Information worksheet:
- Only Non-Resident partners (entity types: I, C, P, A, S, E, T, G, M, L, N, R, K, Q) are included with the PTE-C;
- In column Residency - column State if Different (Interview Form K-1, box 75-96), select applicable state other than IA.
Note: If all partners are non-resident entities, and no individuals, then PTE-C, part 3, lines i-v must be manually answered Yes with input at Iowa > 1040C Composite return worksheet > Section 1 > Lines 9-12 (Interview IA6, boxes 47, 42, 45, 46).
Partner Opt-out
How do I indicate a specific partner has opted out?
- Partners > Partner Information State Specific worksheet > Expand Section 7 - Iowa (Interview IA6).
- In column Partner Number (Interview IA6, Box 50), input applicable partner number(s).
- In Column Form Code (Interview IA6, Box 51- Composite Code, select option 4), select Exclude from IA PTE-C.
Note: Partners excluded will still be listed on the PTE-C, page 3, but will have code NMA in column F - Exemption Code (if applicable).
Extension
- Iowa grants an automatic extension of time to file. See state instructions to verify your client qualifies.
PTE-C Composite Tax Payment Voucher IA 96-048
- Prepared if PTE-C, page 1, line 1, and/or page 3, line 3, calculates an amount due.
PTE-C Tax Prepayments
- Line 6 - per line and form instructions, should be zero for tax year 2022.
- Line 7 - Iowa > 1040C - Composite Return worksheet > Line 14 (Interview Iowa > IA6, box 135).
PTE-C Next Year Estimates
Not applicable at this time.
Electronic Filing
- Return available for electronic filing. Input fields which interact with PTE-C electronic filing:
- General > Electronic Filing worksheet > Section 1 - General > Line 6 - File other returns electronically.
- Interview Form EF-1, box 35 - File other returns electronically.
- General > Electronic Filing worksheet > Section 5 - State Electronic Filing Options > Line 58 - File Iowa PTE Return.
- Interview Iowa > IA6, box 141.
- General > Electronic Filing worksheet > Section 1 - General > Line 6 - File other returns electronically.
- Direct debit is not currently accepted.
Filing Instructions
- Extension, and Return letters available. Extension letters will only mention that the state grants an automatic extension to file.
Additional Information
IA instructions https://tax.iowa.gov/sites/default/files/2023-01/2022IAPTE-CInstructions%2841176%29.pdf
"For purposes of the Iowa Composite Return, nonresident members include partners in a partnership, members of a limited liability company taxed as a partnership or S corporation, shareholders of an S corporation, or beneficiaries of a trust or estate who are any of the following:
"For purposes of the Iowa Composite Return, nonresident members include partners in a partnership, members of a limited liability company taxed as a partnership or S corporation, shareholders of an S corporation, or beneficiaries of a trust or estate who are any of the following:
• An individual who is not a resident of Iowa
• A partnership without a commercial domicile in Iowa
• A trust or estate without a situs in Iowa
• A C corporation or S corporation without a commercial domicile in Iowa
• A financial institution without a commercial domicile in Iowa
• A partnership without a commercial domicile in Iowa
• A trust or estate without a situs in Iowa
• A C corporation or S corporation without a commercial domicile in Iowa
• A financial institution without a commercial domicile in Iowa
Any partner, shareholder, or beneficiary whose state of residence, commercial domicile, or situs, as applicable, is not known by the pass-through entity shall be considered a nonresident member."
Solution Id | 000259575/000259575 |
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