IN SB0259

Partnerships, S corporations, and trusts must include nonresident partners, shareholders, or beneficiaries with Indiana-source distributive share income greater than $0 in composite tax returns

Penalty of $500 per pass-through entity applies for failing to include required nonresidents on composite returns, but no penalty for omitting those without positive Indiana-source income

Pass-through entities are not penalized for composite return omissions if the determination of who should be included was made at filing time and was not due to fraud or intentional disregard of tax law

Updates cross-references in tax code definitions for "nonresident beneficiary" from IC 6-3-4-15(i) to IC 6-3-4-15(j)

Effective immediately upon passage for pass-through entity returns due after enactment, including those with filing extensions