35 Miss. Code. R. 3-09-1-104 - Composite Returns

1. A partnership is allowed to file a composite return on behalf of its partners in very limited circumstances. A composite return is a return in which a partnership pays the income tax due for some, or all, of its partners. The only partners who are eligible to be included in the composite return are nonresident partners without any activity in Mississippi other than that from the partnership.

2. Resident partners and nonresident partners with other activity in Mississippi cannot be included in a composite return. Each of these partners must file his own return.

3. If a composite return is filed, the partnership return is completed like any other partnership return, but an additional schedule is attached listing the partners, the partner's identification or social security number, and the partner's distribution that is to be included in the composite return. The partnership then files a nonresident individual return under the partnership name and identification number in which it includes the composite income.

4. The partnership is allowed to deduct 10% of adjusted gross income not to exceed $5,000 per composite return on the income that relates to individuals as the amount for personal exemptions or standard deductions.

5. Once a partnership begins filing a composite return, it must continue unless permission to change is granted in writing by the Commissioner.

Notes

35 Miss. Code. R. 3-09-1-104