FAQs - Pass Through Entity

What prevented the tax department from mandating that all pass-through entities file form IT 4708 for its nonresident investors rather than allowing an option for filing form IT 1140?

Ohio Revised Code Section 5747.08 (D), does not allow C corporations to participate in the filing of the IT 4708. Reason: There are concerns that corporations might manipulate the apportionment factors to avoid paying the appropriate amount of tax. Thus, the law had to provide for a return (IT 1140) which the pass-through entity could file on behalf of qualifying investors which are corporations.