ID H0582

Allows nonresident owners of pass-through entities to elect to have their income tax reported and paid by the entity on a "composite return" at corporate tax rates instead of individual withholding requirements.

Composite return election is irrevocable for the taxable year but can be made anew each year; the state tax commission may authorize continuing or renewable elections by rule.

Pass-through entities must provide K-1 statements to each individual showing their share of income and tax paid, allowing individuals to claim credits for taxes paid on their behalf.

Revises backup withholding requirements under Section 63-3036B to apply only to nonresident individuals without composite return elections, at the highest marginal corporate tax rate.

Declares the act an emergency measure effective retroactively to January 1, 2012, and establishes liability for entities failing to comply with reporting or withholding provisions.