What is a composite state income tax return?
In many states the Fund is able to file a composite return and make the tax payments on behalf of individual partners, including joint accounts, who elect to participate, avoiding the need for partners to file their own state tax returns. Such tax payments are treated as an advance and will reduce future distributions to you from the Fund. Qualified investment vehicles, such as trusts, family partnerships or corporations, may not be eligible to participate in the composite state income tax returns for all states. In January of each year the Fund will send you a letter asking if you wish to participate in the Fund’s composite state tax returns. Participating could save you the time and expense of filing tax returns in states where you were not a resident and had no other income. This option is available to you only for those states where you have no other taxable income.
