Bill > SB0259

This bill amends Indiana tax law to remove penalties for pass-through entities, such as partnerships, that fail to include nonresident partners, shareholders, or beneficiaries in their composite tax returns if those individuals or entities do not have any income from Indiana sources greater than zero dollars ($0). A "pass-through entity" is a business structure like a partnership or S-corporation where profits and losses are passed through to the owners' personal income without being taxed at the entity level. A "composite return" is a single tax return filed by the pass-through entity on behalf of its nonresident owners, simplifying tax compliance for them. The bill clarifies that the penalty will not apply if the nonresident owner has no taxable income from Indiana sources, and it makes conforming changes to related tax code sections.

Budget and Finance

https://iga.in.gov/legislative/2026/bills/senate/259/details