Partnership Tax

Partnerships engaging in activities in Louisiana that have nonresident partners are required to file a composite partnership return unless:

a. All nonresident partners are corporations, partnerships or tax exempt trusts; or
b. All nonresident individual partners have a valid agreement on file with the Department of Revenue.

The agreement, in the form of an affidavit, must include a statement that the taxpayer agrees to timely file a Louisiana Nonresident Individual Income Tax return and make payment of Louisiana individual income tax. All nonresident partners who were partners at any time during the taxable year and who do not have a valid agreement on file with LDR must be included in the Louisiana Composite Partnership Return (See LAC 61:I.1401).

Who Cannot be Included in a Composite Return Filing?

• Partners who are corporations are required to file Form CIFT-620 to report any partnership income.
• Partners who are Louisiana resident estates and trusts are required to file Form IT-541 to report partnership income.
• Partners who are themselves partnerships are required to file all applicable Louisiana tax returns. Refer to LAC 61:I.1401.
• Partners who are Louisiana residents are required to file Form IT-540 to report partnership income. Refer to LAC 61.I.1401.

Filing Requirements

Louisiana Revised Statute 47:201.1(F)(4) requires the electronic filing of all composite partnership returns. If tax credits are claimed on the composite return:

• ALL nonresident partners must be included on the return, Form R-6922, and on the Schedule of Included Partner’s Share of Income and Tax that is included with the return.
• ALL partners, including residents, corporations and other partnerships must be included on the Schedule of Not Included Partner’s Share of Income and Tax that is included with the return.

If the partnership is not required to file a composite return because all its partners have filed agreements to file on their own behalf, the partnership must make an initial filing in which it files all agreements with the LDR by the composite return due date.

Due Date of Returns and Payments

Returns and payments are due on or before May 15th of the following year. For fiscal year taxpayers, returns and payments are due on the 15th day of the fifth month after the close of the fiscal year. If the due date falls on a weekend or legal holiday, the return is due on the next business day.

Determination of Tax

For tax periods beginning before January 1, 2022, a tax rate of 6% (.06) is assessed on the total distributive shares for nonresident partners included on the Louisiana Composite Return.

For tax periods beginning on or after January 1, 2022, a tax rate of 4.25% (.0425) is assessed on the total distributive shares for nonresident partners included on the Louisiana Composite Return.

Requesting an Extension of Time for Filing a Return

Effective for tax year 2022, Revised Statute 47:103 allows a six-month automatic extension of time to file the individual income tax return. If you know you cannot file your return by the due date, you do not need to file for an extension. No paper or electronic extension form needs to be filed to obtain the automatic filing extension.

Note: An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.

Options for When an Extension Payment Needs to be Made

If you need to make a payment, you must:

1. Mail in a check or money order with the extension payment voucher, Form R-6467V;
2. Print an extension payment voucher through LDR’s the Online Tax Extension Payment application;
3. Make a payment using either a bank account or a credit card through LDR's File Online application;
4. Make a payment electronically through tax preparation software that supports this option; or
5. By credit card at Officialpayments.com.

Please do not use Form R-6922V, Composite Partnership Electronic Filing Payment Voucher, to submit an extension payment. Form R-6922V is to be used only by tax filers that have filed their tax returns through electronic filing and need to make a payment.

Note: An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.

Filing an Amended Return

If you file your composite partnership and later become aware of any changes to income, deductions, or credits, you must file an amended (corrected) Louisiana return. Amended returns must be filed electronically. Make sure you check the box to designate the return as an amended return.

In order to amend the amounts reported for the computation of tax paid on behalf of nonresident partners, the taxpayer must file an amended return, along with a detailed explanation of the changes.