Nonresident Partners & Shareholders

A partnership or S corporation may file a composite income tax return for its nonresident partners or shareholders, as a simplified way of paying the income tax owed by those partners or shareholders. A Colorado Partnership and S Corporation and Composite Nonresident Income Tax Return (DR 0106) replaces the separate Colorado partnership and S corporation income tax returns for each partner or shareholder listed on the composite return.

Each nonresident partner or shareholder may elect to be included or excluded from the composite filing. If a nonresident partner or shareholder elects to be excluded from this composite filing, then on the following forms must me completed and submitted to the Department:

  1. The nonresident partner or shareholder can provide a completed Colorado Nonresident Partner/Shareholder Agreement (DR 0107) to establish that the nonresident partner or shareholder will report the Colorado source income and pay the Colorado tax on any income derived from a Colorado partnership or S corporation on an individually filed Colorado income tax return.
  2. If nonresident partners or shareholders do not provide a completed DR 0107, then the partnership or S corporation must file a Statement of Colorado Tax Remittance for Nonresident Partner or Shareholder (DR 0108). Payment should be included with the filed DR 0108, if tax is assessed on the Colorado sourced income for the nonresident partner or shareholder.