5. May an intermediate flow-through entity file a composite return?

Yes, an intermediate flow-through entity (FTE) that generated its own income or loss and has two or more participating nonresident members may file its own composite return, even if the intermediate FTE participated in another composite return.

If an intermediate FTE participated in another FTE’s composite return, it should not include any income or tax paid on its behalf with the other FTE’s composite return.