Indiana Eliminates Certain Pass-Through Entity Composite Income Tax Return Penalties

The Indiana Governor signed a law that includes removing penalties for a pass-through entity that does not list nonresident partners, nonresident shareholders, or nonresident beneficiaries that do not have distributive share income of greater than $ 0.00 on a composite return. The law took effect on passage. [S.B. 259, enacted 03/03/26]