Knowledge Base Solution - Common questions and answers regarding Iowa PTE-C composite with an 1120S return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax.

Common questions and answers regarding Iowa PTE-C composite with an 1120S return using CCH® ProSystem fx® Tax and CCH Axcess™ Tax.

Article Type:
QA
Last Modified:
03/14/2024

Question

What are some common questions and answers regarding Iowa PTE-C with tax year 2022?

Environment

CCH® ProSystem fx® Tax
CCH Axcess™ Tax
S Corporation - 1120S
Iowa - IA

Answer

Question	Answer
-Form Name	Iowa PTE-C
-State Links	https://tax.iowa.gov/ Instructions: https://tax.iowa.gov/sites/default/files/2023-01/2022IAPTE-CInstructions%2841176%29.pdf
Election for PTE
-Is an Election Required?	Any IA 1120S return that has nonresident members at any time during the tax year and pay Iowa composite return tax on their behalf must file the IA PTE-C.
-Made when?	Due Date: May 1st, 2023
-Option to Opt-Out?	The Form IA 41-175 may be filed per shareholder to opt out of being included in the filing of Form IA PTE-C. Iowa > 1040C Composite Return worksheet > Iowa Composite Return > in grid Partner/Shareholder Information, enter the Shareholder number and then in column Code, select option 4, which will exclude that particular shareholder form the PTE-C and produce the 41-175. Interview Iowa > IA6, Boxes 50 - 128.
Generation of State PTE Return
-How do we generate the form above?	Common State/City > State PTE Generation > State PTE Return Generation > Iowa - Generate State PTE return. Interview Iowa > PTE-ST1, Box 90.
-How do we generate the form above?	Or Iowa > IA PTE-C Composite Return worksheet > IA Schedule CC-Composite Credits > X to generate Form PTE-C (removed for tax year 2023). Interview Iowa > IA6, Box 48 (removed for tax year 2023).
Estimates
-Are there estimates for this form?	Estimates for the IA PTE-C are currently not available.
Interest/Penalties
-Do interest/penalties apply?	Interest and penalties can selected on Penalties > State / City Late Interest and Penalties Interview Common State > Penalties > PEN-1.
-Is there an underpayment penalty?	Underpayment can be selected on Penalties > State / City Underpayment Penalty Interview Common State > Penalties > UP-1.
Additional PTE Information Common State > State PTE Generation worksheet >Grid 23 (Interview PTE-ST1, boxes 300-364)
-Does this section apply to this state?	Not at this time.

Additional Information

N/A

Solution Id	000260673/000260673
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