LDR Streamlines PTE Election Documentation Requirements

The Louisiana Department of Revenue ("LDR") has issued Revenue Information Bulletin 26-007, announcing a change to the documentation required for shareholders, partners, and members of entities that elect to pay Louisiana's Pass-Through Entity ("PTE") tax beginning with the 2025 taxable year. Owners of electing PTEs will no longer be required to submit a pro forma federal income tax return or nonresident worksheet with their initial Louisiana filing.

Existing regulation LAC 61:I.1001(C)(4)(d) requires each owner to submit Form R-6981, Statement of Owner's Share of Entity Level Tax Items, together with a pro forma federal return (Form 1040 or 1041 for residents). Each nonresident owner must submit a worksheet from Louisiana Form IT-540B. Revenue Information Bulletin 26-007 provides that, starting in 2025, owners must still submit Form R-6981, but the pro forma federal return or nonresident worksheet will be required only upon request by LDR. The Department intends