280 R.I. Code R. 280-RICR-20-25-7.7 - Filing Requirements for Members

A. If a domestic or foreign LLC is not treated as a corporation for of federal income tax purposes, for tax years beginning on or after January 1, 2012, LLCs are required to file Form RI-1065. Prior to January 1, 2012, LLCs shall file Form RI-1120S.

1. Any member of the LLC during any part of the LLC's taxable year shall file a Rhode Island income tax return and shall include in Rhode Island gross income that portion of the LLC's Rhode Island income allocable to such member's interest in the LLC.

2. A nonresident member is required to file a Rhode Island income tax return even though the member's only source of Rhode Island income was such member's share of the LLC's income which was derived from or attributable to sources within this state, and the amount of nonresident pass-through withholding remitted by the LLC on behalf of the nonresident member shall be allowed as a credit against such member's Rhode Island income tax liability.

B. A domestic or foreign LLC or other pass-through entity may file a composite return reporting the Rhode Island source income attributable to the nonresident members. A nonresident member of a pass-through entity who participates in a composite return will be considered to have satisfied the Rhode Island filing requirement and no further filing by the nonresident member is required. For a nonresident member of a pass-through entity to participate in a composite return, the nonresident member must:

1. be an individual; and

2. have no Rhode Island source income other than from the pass-through entity filing the composite return; and

3. elect to participate in the composite by filing an election form (RI Form 1040C-NR) with the entity. The election form is to be kept on file by the entity for inspection by personnel of the Rhode Island Division of Taxation.

Notes

280 R.I. Code R. 280-RICR-20-25-7.7