INDIANA DEPARTMENT OF REVENUE 100 N. SENATE AVE. INDIANAPOLIS, IN 46204-2253 www.in.gov/dor Tax Administration (317) 233-4015 SP 244 (R7/8-08) STATE OF INDIANA STATE OF INDIANA Financial Institution Tax Booklet 2008 Form FIT-20 This booklet contains forms and instructions for preparing Indiana financial institution returns for tax year 2008 and for fiscal years beginning in 2008 and ending in 2009. 2 American LegalNet, Inc. www.FormsWorkflow.com Indiana Department of Revenue 2008 Financial Institution Tax Booklet Table of Contents General Filing Requirements for FIT-20 Forms and Schedules.....................................................................................4 Instructions for Completing Form FIT-20.............................................................................................................................7 . Net Capital Loss Adjustment for FIT-20 Line 22 - Sample Worksheet...................................................... 10 FIT-20 Schedule SUT - Sales/Use Tax Worksheet............................................................................................. 18 Form FIT-20 - Indiana Financial Institution Tax Return................................................................ (return pages 1-2) FIT-20 Schedule E-U - Apportionment of Receipts to Indiana.........................................(return page 3) Instructions for FIT-20 Schedule E-U.................................................................................................................... 16 Instructions for Filing a Combined Return: Attributing Receipts of a Taxpayer Filing a Combined Return.......................................................................................... 17 FIT-20 Schedule H – Members of Unitary Group Filing a Combined Return..............................(return page 4) Schedule FIT-2220 - Underpayment of Estimated Tax by Financial Institutions.......................(return page 4) Instructions for Schedule FIT-NRTC - Nonresident Tax Credit.................................................................................... 18 Schedule FIT-NRTC - Indiana Financial Instruction Nonresident Tax Credit.......................................... 23 Instructions for Schedule FIT-20NOL.................................................................................................................................. 24 Schedule FIT-20NOL - Computation of Indiana Member’s Net Operating Loss Deduction............ 25 Special Reminders...................................................................................................................................................................... 26 Form FT-ES - Indiana Financial Institution Tax Return - Estimated Quarterly Payment.................................... 26 Form FT-EXT - Indiana Financial Institution Tax Return - Extension Payment...................................................... 26 Instructions for Form FT-ES..................................................................................................................................... 27 For Other Indiana Department of Revenue Forms: Internet Address - www.in.gov/dor Our homepage provides access to forms, information bulletins and directives, tax publications, e-mail, and various filing options. Tax Forms Order Line - (317) 615-2581 3 American LegalNet, Inc. www.FormsWorkflow.com File the general Indiana corporate adjusted gross income tax return, Form IT-20, if for the taxable year you do not meet the 80 percent threshold of gross income derived from activities that constitute the business of a financial institution. This form is available from the Department’s Web site at www.in.gov/dor/3517.htm Annual Public Hearing In accordance with the Indiana Taxpayer Bill of Rights, the Indiana Department of Revenue will conduct an annual public hearing on Tuesday, June 2, 2009. Please come and share your ideas on how the Department can better administer Indiana tax laws. The hearing will be held from 9 a.m. to 10 a.m. in the Indiana Government Center South, Conference Center, Room 32, 402 W. Washington St., Indianapolis, Indiana. If you are unable to attend, please submit your concerns in writing to: Indiana Department of Revenue, Commissioner’s Office, 100 N. Senate Ave., Indianapolis, IN 46204. Due Date of Return The annual return is due on or before the 15th day of the fourth month following the close of the corporation’s tax year. Utility Services Use Tax General Filing Requirements for FIT-20 Forms and Schedules Effective July 1, 2006, an excise tax known as the utility services use tax is imposed on the retail consumption of utility services in Indiana at the rate of 1.4 percent where the utility receipts tax is not paid by the utility providing the service. References to the Internal Revenue Code You may be liable for this tax if you purchase utility services from outside Indiana (or anywhere if for resale) and become the end user in Indiana of any part of the purchase. The person who consumes the utility service is liable for the utility services use tax based on the price of the purchase. Unless the seller of the utility service is registered with the Department to collect the utility services use tax on your behalf, you are required to remit this tax on Form USU-103. For more information, refer to Commissioner’s Directive #32, available at www.in.gov/dor/3617.htm Copies of pages 1 through 4 of the corporation’s federal income tax return must be enclosed with Form FIT-20 along with Schedule M-3 and the extension of time to file form. This requirement is made under the authority of Indiana Code (IC) 6-5.5-6-5. Public Law (PL) 131-2008, SEC. 12 updates references to the Internal Revenue Code (IRC) in certain Indiana tax statutes. For tax year 2008, any reference to the Internal Revenue Code and subsequent regulations means the Internal Revenue Code of 1986, as amended and in effect on Jan. 1, 2008. Apportionment of Adjusted Gross Income For a complete summary of new legislation regarding taxation, please see 2008 Summary of State Legislation Affecting the Department of Revenue at www.in.gov/dor/3656.htm Resident financial institutions are treated the same as nonresident financial institutions for the purposes of the financial institution tax by providing that the tax is imposed on the apportioned Indiana income of financial institutions. Who Must File Form FIT-20 IC 6-5.5-2-1 imposes an 8.5 percent financial institution tax on the adjusted gross income of any corporation transacting the business of a financial institution, including a holding company, a regulated financial corporation, a subsidiary of a holding company or regulated financial corporation, or any other corporation carrying on the business of a financial institution. Any taxpayer who is subject to tax under IC 6-5.5 is exempt from Indiana’s adjusted gross income tax. The law employs a single-factor receipts formula to determine the percentage of the taxpayer’s income subject to the tax. The single-factor formula is derived by dividing the gross receipts attributable to transacting business in Indiana by the total receipts from transacting business in all taxing jurisdictions. Nexus Rules A resident taxpayer is a taxpayer who is commercially domiciled in Indiana and transacts the business of a financial institution in Indiana. A nonresident taxpayer is a taxpayer who is not commercially domiciled in Indiana but transacts the business of a financial institution in this state. The law is based on the ability of a corporation under modern technology to transact the business of a financial institution in Indiana, regardless of the principal location of its offices and employees. A taxpayer is transacting business in Indiana for purposes of the franchise tax when it satisfies any of the following eight tests: (1) Maintains an office in Indiana; (2) Has an employee, a representative, or an independent contractor conducting business in Indiana; (3) Regularly sells products or services of any kind or nature to customers in Indiana who receive the product or ser- vice in Indiana; (4) Regularly solicits business from potential customers in Indiana; (5) Regularly performs services outside Indiana that are consumed within Indiana; The financial institution tax extends to both resident and nonresident financial institutions and to all other corporate entities when 80 percent or more of its gross income is derived from activities that constitute the business of a financial institution. The business of a financial institution is defined as activities authorized by the federal reserve board; the making, acquiring, selling, or servicing of loans or extensions of credit; acting as an agent, a broker, or an advisor in connection with leasing real and personal property that is the economic equivalent of an extension of credits; or operating a credit card, debit card, or charge card business. 4 American LegalNet, Inc. www.FormsWorkflow.com  (6) Regularly engages in transactions with customers in Indiana involving intangible property, including loans, but not property described in IC 6-5.5-3-8(5), and resulting in receipts flowing to the taxpayer from within Indiana; (7) Owns or leases tangible personal or real property located in Indiana; or (8) Regularly solicits and receives deposits from customers in Indiana. (d) An interest in the right to service or collect income from a loan or other asset where interest on the loan is attributed as a loan described above and the payment obligations were solicited and entered into by a person who is independent and not acting on behalf of the owner. (e) An amount held in an escrow or trust account with respect to the property described previously. (6) Acting “Regularly,” for purposes of the previously listed tests, is defined as assets attributable in Indiana equal to at least $5 million or 20 or more Indiana customers. (a) As an executor of an estate; (b) As a trustee of a benefit plan; (c) As a trustee of an employee’s pension, profit sharing, or other retirement plan; (d) As a trustee of a testamentary or inter vivos trust or corporate indenture; or (e) In any other fiduciary capacity, including holding title to real property in Indiana. Exempt Entities Four specific types of organizations are exempted from the franchise tax: insurance companies, international banking facilities, S corporations exempt from income tax under IRC Section 1363, and nonprofit corporations (with the exception of state chartered credit unions). Federal law prohibits state taxation of federally chartered credit unions. Method of Reporting A taxpayer is allowed to file a separate return only in those instances where the taxpayer is not a member of a unitary group. Members of a unitary group must file collectively on one combined return. No provision is made for filing consolidated returns. Exempt Transactions A taxpayer is not considered to be transacting business in Indiana if the ONLY activities of the taxpayer in Indiana are in connection with any of the following: If the taxpayer is a member of a group, combined reporting is mandatory. However, if the taxpayer determines that its Indiana income is not accurately reflected by the filing of a combined return, the taxpayer can petition the Department by indicating on its annual return that the return is a separate return made by a member of a unitary group. Such petition is subject to approval by the Department. The petition must include the name and federal identification number of each member of the group petitioning for an alternative method. Each member must include its justification for the alternative method. (1) Maintaining or defending an action or a suit; (2) Filing, modifying, renewing, extending, or transferring a mortgage, deed of trust, or security interest; (3) Acquiring, foreclosing, or otherwise conveying property in Indiana as a result of a default under the terms of a mortgage, deed of trust, or security interest relating to the property; (4) Selling tangible personal property, if taxation under this law is precluded because of federal law relating to inter- state commerce; (5) Owning an interest in the following types of property even though activities are conducted in Indiana that are reason- ably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property, or the income from the property, or the acquisition or liquidation of collateral relating to the property: (a) An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regu- lated investment company. (b) An interest in a loan-backed security represent- ing ownership or participation in a pool of prom- issory notes or certificates of interest providing for payments in relation to payments or reason able projections of payments on the notes or cer tificates. (c) An interest in a loan or other asset where the interest is attributed to a consumer loan, com mercial loan, or secured commercial loan and where the payment obligations were solicited and entered into by a person who is independent and not acting on behalf of the owner. Petitions can also be sent to: Indiana Department of Revenue Tax Policy Division 100 N. Senate Ave. Room N248 Indianapolis, IN 46204 Members of a Unitary Group The combined return shall include the adjusted gross income of all members of the unitary group that are transacting business wholly or partially within Indiana. The statute provides exclusion for the income of corporations or other entities organized in foreign countries, except a federal or state branch of a foreign bank or its subsidiary that transacts business in Indiana. “Unitary business” means business activities or operations that are of mutual benefit, dependent upon or contributory to one another, individually or as a group, in transacting the business of a financial institution. The term can be applied within a single entity or between multiple entities and without regard to whether each entity is a corporation, partnership, or trust. Unity is presumed if there is unity of ownership, operation, or use as evidenced by centralized purchasing, advertising, accounting, or other controlled interaction among entities that are members of the unitary group as defined in IC 6-5.5-1-18(a). 5 American LegalNet, Inc. www.FormsWorkflow.com Extensions for Filing Unity of ownership exists for a corporation if it is a member of a group of two or more business entities, 50 percent of whose voting stock is owned by a common owner or owners or by one or more of the member corporations of the group. The Department accepts the federal extension of time application (Form 7004) or the federal electronic extension. If you have one, you do not need to contact the Department prior to filing your annual return. Returns postmarked within 30 days after the last date indicated on the federal extension will be considered timely filed. If you do not need a federal extension of time but need one for filing your state return, submit a letter requesting such an extension to the Department prior to the due date of your annual return. The taxpayer designated as the reporting member of a unitary group shall file a combined return that includes all operations of the unitary business. List members included in the combined return by completing FIT-20 Schedule H on page 4 of the return. See page 17, Instructions for Filing a Combined Return. Partnerships To request an Indiana extension of time to file, contact the Indiana Department of Revenue, Data Control Business Tax, Returns Processing Center, 100 N. Senate Ave., Indianapolis, IN 46204-2253. Partnerships and trusts as entities are not subject to the franchise tax. However, partnerships and trusts having corporate partners or corporate grantors and beneficiaries where the entity is conducting the business of a financial institution are required to file a partnership return, Form IT-65. If you have a valid extension of time or a federal electronic extension to file. you must check box V-1 on front of the return. If applicable, enclose a copy of the federal extension of time with the return when filing your state return. The following guidelines should be considered when preparing an informational return for a financial institution that is a partnership: (1) If the entity is a partnership and has nonresident corpo rate partners, the partnership is required to withhold and remit the nonresident corporation’s tax liability on its ap portioned income if the nonresident corporation is not otherwise a taxpayer for purposes of the tax. The appor tioned income attributable to the partner is the same percentage as its distributive share. If the corporate part- ner is otherwise subject to the franchise tax, the corporate partner is responsible for the tax in accordance with its percentage share of the partnership’s adjusted gross in- come or apportioned income. (2) If a resident corporate partner is not otherwise subject to the tax, the corporate partner must pay the tax liability at- tributable to its partnership income. The income attrib- uted to the corporate partner’s share that has been subject to the franchise tax would not be included in the income calculation for purposes of the Indiana adjusted gross income tax. (3) If a corporation is a financial institution that is also a part- ner in a partnership and the partnership is transacting the business of a financial institution in Indiana, the part- ner is a taxpayer for purposes of the financial institution franchise tax. An extension of time granted under IC 6-8.1-6-1 waives the late payment penalty for the extension period on the balance of tax due provided 90 percent of the current year’s total tax liability is paid on or prior to the original due date. Form FT-QP should be used to make an extension payment for your taxable year. This payment will be processed as a “fifth” estimated payment. Use the preprinted extension form included with your previous estimated coupon packet or the blank FT-EXT form at the end of the booklet. Example: A bank in Maine is a partner with a bank in Indiana to make loans to Indiana borrowers. The only activity of the Maine bank is its involvement in the partnership. The partnership is required to withhold the Maine bank’s share of the financial institution tax. To amend a previously filed Form FIT-20, you must file a corrected copy of the original form. Check box A1 at the top of the form if you are filing an amended return. To claim a refund of an overpayment, file the return within three years from the latter of the date of overpayment or the due date of the return. Note: Any tax paid after the original due date must include interest. Interest on the balance of tax due must be included with the return when it is filed. Interest is computed from the original due date until the date of payment. In October of each year, the Department establishes the interest rate for the next calendar year. See Departmental Notice #3 at www.in.gov/dor/3618.htm for interest rates. Amended Returns IC 6-5.5-6-6 requires a taxpayer to notify the Department within 120 days of alterations or modifications to its federal income tax return (federal adjustment, RAR, etc.) as finally determined, by amended Form FIT-20. United States Government Obligations IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a reduction in tax liability resulting from a federal modification. The claim for refund should be filed within six months from the date of modification by the Internal Revenue Service. If an agreement to extend the statute of limitations for an assessment is entered into between the taxpayer and the Department, the period for filing a claim for refund is likewise extended. Although interest earned on United States obligations is not subject to income taxation, it is not preempted by federal law from being included in the tax base of a franchise tax. Therefore, interest from United States obligations is not to be subtracted from federal taxable income in determining the tax base of the franchise tax. 6 American LegalNet, Inc. www.FormsWorkflow.com Estimated Quarterly Payments at least 20 percent of the final financial institution tax liability for the current taxable year or 25 percent of the corporation’s final financial institution tax liability for the previous tax year. Quarterly payments of estimated financial institution tax are required under IC 6-5.5-6-3. The quarterly due dates for estimated quarterly payments of a calendar year filer are April 20, June 20, Sept. 20, and Dec. 20 of the taxable year. The penalty for the underpayment of estimated tax is assessed on the difference between the actual amount paid by the corporation for each quarter and 20 percent of the final liability for the current year or 25 percent of the corporation’s final tax liability for the previous tax year, whichever is less. Refer to Schedule FIT-2220, Underpayment of Estimated Tax by Financial Institutions, on return page 4 of Form FIT-20. If a taxpayer uses a taxable year that does not end on Dec. 31, the due dates for filing the estimated quarterly financial institution tax return and paying the tax are on or before the 20th day of the fourth, sixth, ninth, and twelfth months of the taxpayer’s taxable year. The payments must be made with the financial institution estimated quarterly vouchers, Form FT-QP. The Department mails preprinted FT-QP vouchers to current FIT estimated account holders. A copy of a blank estimated quarterly voucher, Form FT-ES, is located at the back of this publication. Instructions for Completing Form FIT-20 Filing Period and Identification File a 2008 Form FIT-20 return for a taxable year ending Dec. 31, 2008, a short tax year beginning in 2008 and ending in 2008, or a fiscal tax year beginning in 2008 and ending in 2009. For a short or fiscal tax year, fill in at the top of the form the beginning month and day and the ending date of the taxable year. If the annual tax liability is less than $2,500, estimated payments are not required to be made. The previous threshold in effect was $1,000 through Dec. 15, 2007. Electronic Funds Transfer Requirements A taxpayer’s quarterly estimated tax must be remitted by electronic funds transfer (EFT) if the amount of financial institution tax exceeds an average liability of $5,000 per quarter (or $20,000 annually), effective Jan. 1, 2008. Previously, the threshold in effect was $10,000 per quarter through Dec. 15, 2007. If the Department is unable to obtain payment on the EFT, a penalty of 10 percent of either the unpaid tax or the EFT, whichever is less, will be assessed. Because there is no minimum amount of payment, the Department encourages all taxpayers not required to remit by EFT to participate voluntarily in our EFT program. Please use the correct legal name of the corporation and its present mailing address. For a name change, check box B-1 at the top of the return. Enclose with the return copies of amended Articles of Incorporation or an Amended Certificate of Authority filed with the Indiana Secretary of State. The federal identification number shown in the box must be correct. Note: Taxpayers remitting by EFT should not file quarterly FT-QP coupons. The amounts are reconciled when filing the annual income tax return. Enter your principal business activity code, derived from the North American Industry Classification System (NAICS), in the designated block of the return. Use the six-digit activity code as reported on the federal corporation return. A link to a list of these codes is available through the Department’s Internet address: www.in.gov/dor/3742.htm List the Indiana county of your primary business location within the state. Enter “O.O.S.” (out- of-state) in the county box for addresses outside Indiana. If the Department notifies a corporation of the requirement to remit by EFT, the corporation must do the following: Questions L through W of the FIT-20 must be completed for the return to be accepted by the Department. Check or complete all boxes that apply for your return. (1) Complete and submit the EFT Authorization Agreement (Form EFT-1); and (2) Begin remitting tax payments via EFT by the date/tax period specified by the Department. Check box S-1 if you are filing an initial return for the state of Indiana. Failure to comply will result in a 10 percent penalty on each quarterly estimated tax payment not sent by EFT. Indiana Code does not require the extension of time to file payment or final payment due with the annual tax return to be made by EFT. Be sure to claim any EFT payment as an extension or estimated payment credit. Do not file a return indicating an amount due if you have paid, or will pay, any remaining balance by EFT. If a corporation determines that it meets the requirements to remit by EFT or has any questions, it should contact the EFT Section at (317) 232-5500. Is this filing your final return for the state of Indiana? Check box S-2 only if the corporation is dissolved, is liquidated, or withdrew from the state. Also, you must timely file Form BC-100 to close out any sales and withholding accounts. Go to www.in.gov/dor/3508.htm to complete this form online. Check this box S-3 if the corporation is in bankruptcy. Check box S-4 if you are filing as a real estate investment conduit (REMIC). Note: The return for a REMIC is due on the15th day of the fifth month following the close of the taxpayer’s tax year. Penalty for Underpayment of Estimated Taxes (IC 6-5.5-7-1) Check box V-1 if an extension of time to file your return is in effect. If applicable, enclose a copy of federal Form 7004 when filing your state return. Corporations estimating their financial institution tax liability are subject to a 10 percent underpayment penalty if they fail to file estimated tax payments or fail to remit a sufficient amount. To avoid the penalty, the required quarterly estimate should include 7 American LegalNet, Inc. www.FormsWorkflow.com Schedule A - Line Instructions Caution: If you are a state chartered credit union or an investment company, check box K. Begin on line 18 to complete the return. Read the instructions for line 18 before completing the form. Line 1. Enter your federal taxable income from Federal Form 1120 before the net operating loss deduction or the special federal deduction. Note: If filing as a state chartered credit union or an investment company registered under the Investment Company Act of 1940, go to line 18 to enter your adjusted gross income as defined under IC 6-5.5-1-2(b) and(c). placed into service. Taxpayers who own property for which additional first-year special depreciation for qualified property, including 50 percent bonus depreciation, was allowed in the current taxable year or in an earlier taxable year, must add or subtract an amount necessary to make their adjusted gross income equal to the amount computed without applying any bonus depreciation. The subsequent depreciation allowance is to be calculated on the state’s stepped-up basis until the property is disposed. If line 11B amount is negative, enter in . The additional depreciation may be excluded in subsequent years from the amounts to be added back on line 11B, or 11C when excess IRC Section 179 deduction or bonus depreciation was elected. Line 2. Enter the qualifying dividend deduction. See Commissioner’s Directive #19, available at www.in.gov/dor/3617.htm, for information on the allowance of depreciation for state tax purposes. Line 3. Subtotal: Subtract line 2 from line 1. Add backs: Lines 4 through 11 deducted at the federal level. 11C. Enter your share of the IRC Section 179 adjustment claimed for federal tax purposes that exceeds the amount recog nized for state tax purposes. Add or subtract the amount necessary to make the adjusted gross income of the taxpayer that placed any IRC Section 179 property in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed had an election not been made for the year in which the property was placed in service to take deduc tions, as defined in IRC Section 179 in a total amount ex- ceeding $25,000. Line 4. Enter the amount deducted for bad debt (IRC Sec. 166). See also line 15 to report recovery of a debt that becomes worthless to the extent a deduction was allowed from gross income in a prior tax year under IRC Sec. 166(a). Line 5. Enter the amount deducted for bad debt reserves of banks (IRC Sec. 585). Line 6. Enter the amount deducted for bad debt reserves (IRC Sec. 593). 11D. Deduct the amount of income from qualified utility and plant patents included in federal taxable income. Note: Be sure to enter this amount in . For tax years beginning after Dec. 31, 2007, this income is exempt from Indiana adjusted gross income. Get Income Tax Information Bulletin #104 at www.in.gov/dor/3650.htm for more information. Line 7. Enter the amount deducted for charitable contributions (IRC Sec. 170). Line 8. Enter the amount deducted on the federal return for all state and local taxes based on or measured by income (IRC Sec. 63). Indiana adopted the former expensing limit provided by The Jobs Creation and Workers Assistance Act of 2002 and has since specified an expensing cap of $25,000. The additional depreciation may be excluded in subsequent years from the amounts to be added back on line 6 when excess IRC Section 179 deduction or bonus depreciation was elected. Line 9. Enter an amount equal to the capital loss carryover (from federal Schedule D: line 4, minus line 14 loss amount) to the extent used in offsetting capital gains allowed under IRC Section 1212. See instructions to line 22 for subtracting the amount deductible for Indiana net capital losses. Line 10. Enter the amount of interest on state and local obligations excluded under IRC Section 103, or under any other federal law, minus the associated expenses disallowed in the computation of taxable income under IRC Section 265. If line 11C’s amount is negative, enter it in . Line 11 A, B, C, and D. Other Income Modifications Enclose a complete explanation for your adjustments. Deductions from Income Line 14. Subtract income derived from sources outside the United States as defined in the Internal Revenue Code and included in federal taxable income. Line 12. Total add backs: Add lines 4 through 11D. Line 13. Subtotal Income: Add line 3 and line 12. 11A. Enter an amount equal to the amount claimed as a deduc- tion for domestic production activities under IRC Section 199 for federal income tax purposes. Line 15. Subtract an amount equal to a debt or portion of a debt becoming worthless (IRC Sec. 166). This will include a reduction in the amount for the recovery of a bad debt deducted from gross income in a prior taxable year (applicable to taxpayers not defined as a large bank under IRC Section 585 (c) (2) or Savings Association under IRC Section 593). 11B. Add or subtract an amount attributable to bonus deprecia tion in excess of any regular depreciation that would be allowed had not an election under IRC Section 168(k) been made as applied to property in the year that it was 8 American LegalNet, Inc. www.FormsWorkflow.com Line 16. Subtract an amount equal to any bad debt reserves included in federal income because of accounting method changes required by IRC Sec. 585(c)(3)(A) or IRC Section 593. Line 17. Total Deductions: Add lines 14 through 16. Line 18. Total Income Prior to Apportionment: Subtract line 17 from line 13. State chartered credit unions must begin on line 18 by entering their “adjusted gross income.” For state chartered credit unions “adjusted gross income” equals the total transfers to undivided earnings, minus dividends for that taxable year after statutory reserves are set aside under IC 28-7-1-24. In other words, “adjusted gross income” can be defined as net transfers to undivided earnings. No other deductions are permitted. The above definition also applies to a nonresident credit union doing business in Indiana. Investment companies, defined under IC 6-5.5-1-2(d), must begin on line 18 by reporting federal taxable income computed according to the Internal Revenue Code as in effect on Jan. 1, 2003, before any net operating loss deduction. An investment company must also complete line 12 of FIT-20 Schedule E-U. Line 19. Total Income Prior to Apportionment: Enter the amount carried from line 18. Line 20. Apportionment Percentage: (See instructions for Schedule E-U.) This line should be used by all taxpayers and unitary groups. Enter the amount from line 15 of Schedule E-U. Line 21. Apportioned Adjusted Gross Income for Indiana: Multiply line 19, total income subject to apportionment, by line 20, apportionment percentage from Schedule E-U. Line 22. Indiana Net Capital Loss Adjustment: Enter Indiana net capital loss carryover, as computed on your enclosed worksheet. See the sample worksheet on page 10. Line 22 is limited to the amount on line 21. Also, line 9 must be completed to add back an amount equal to the federal net capital loss deduction. Note: Excess capital losses may be carried forward for five years following the loss year; however, there is no provision for the carryback of a capital loss incurred under the Financial Institution Tax Act. 9 American LegalNet, Inc. www.FormsWorkflow.com Net Capital Loss Adjustment for FIT-20 Line 22 - Sample Worksheet Attach to your return your worksheet that shows the following calculations. Use this format to determine the available amount of an Indiana net capital loss and the remainder to carry forward. Add sheets to include all members of a unitary group. Computation of Indiana Net Capital Loss for Carry Forward For a taxpayer who is not filing a combined return, the taxpayer’s taxable income consists of an adjustment for net capital losses computed under the Internal Revenue Code and derived from Indiana. Capital losses and capital gains derived from Indiana are determined by the apportionment percentage applicable to each taxable year. Example Loss Year Ending: 12-31-2007 1. Net capital loss from federal Schedule D without IRC Section 1212 carryover ................................................................................ ($80,000) 2. FIT-20 Indiana apportioned income percentage for the taxable year of the capital loss ................................................................. 50% 3. Indiana net capital loss for carry forward (limited to succeeding five years) .................................................................................... ($40,000) Additional provisions required for a combined return: Any net capital loss or net operating loss attributable to Indiana in the combined return must be prorated between each member of the unitary group having nexus in Indiana. Each member must calculate its share of the capital loss and amount available to be applied for the combined return. The net capital loss attributable to Indiana in the combined return is prorated between each taxpayer member of the unitary group by the quotient of: (a) the Indiana receipts of those taxpayer members attributable to Indiana, divided by: (b) the total receipts of all taxpayer members to Indiana Example Indiana receipts attributable to: Member’s ratio of Indiana receipts: Prorated share of Indiana net capital loss: Member A $6,000,000 25% ($10,000) Member B $9,600,000 40% ($16,000) Member C Combined Indiana total $8,400,000 $24,000,000 35% 100% ($14,000) Carry forward these amounts separately on the combined return. Use this portion of the worksheet as many times as needed to determine the deductible net capital loss applied against any Indiana net capital gains during the five year carryforward period following the year of a loss. Computation of Net Capital Loss Adjustment The net capital loss available to be applied, if any, and carried forward to any subsequent year shall be limited to the capital gains for the subsequent year of each taxpayer member. The amount of net capital gains is determined by the same receipts formula used in computing the amount of loss derived from Indiana and is prorated between members of a unitary group (IC 6-5.5-2-1). Example Loss Year Ending: 12-31-2008 4. Net capital loss from federal Schedule D (recomputed without any IRC Section 1212 unused capital loss carryover) ...................... 5. FIT-20 Indiana apportioned income percentage for the taxable year ....................................................................................................... 6. Available Indiana net capital gain for the year ............................................................................................................................................... $50,000 60% $30,000 Example for members of a unitary group filing a combined return having a net capital gain in 2008: Indiana receipts attributable to: Member’s ratio of Indiana receipts: Prorated share of Indiana net capital loss: Member A $5,000,000 10% $3,000 Member B $35,000,000 70% $21,000 Member C $10,000,000 20% $6,000 Combined Indiana total $50,000,000 100% Application of Indiana Net Capitol Loss Adjustment Enter the unused net capital loss from loss year (prorated amounts) or remaining amount(s) of each member as reduced during each of the intervening years following the year of loss. The current year adjustment for Indiana is limited to the unused amount of net capital loss, up to the amount of the net capital gains prorated for each member. Amount of Loss Applied to (2008): $3,000 $16,000 $6,000 7. Combined total of Indiana net capital loss adjustment for the tax year. Carry to line 22 of Form FIT-20 ................. $25,000 Note: This amount may be applied only up to the amount of the current year’s income tax liability. 8. Remaining share of taxable capital gain: -0- $5,000 -0and (unused net capital loss): ($7,000) -0- ($8,000) (Share of carryover to 2009) 10 American LegalNet, Inc. www.FormsWorkflow.com Summary of Total Indiana Net Capital Loss Carryover(s) - 2008 Example, continued Compile for each year the total amount of net capital loss applied against net capital gains. The gain or loss available is limited to the amount of each taxpayer member’s portion as apportioned to Indiana. For net capital loss carryovers from two or more years, show amounts applied through all carryforward years. Unused net capital loss from loss years occurring since 1997, after application against any net capital gains, may be carried through taxable year 2002. Combined total Indiana net capital gains for each year. Example of carryover Enter below total Indiana net capital loss from loss year(s): 2005 ($ ) 2006 ($ ) 2007 ($ ) 2008 ($40,000 ) Remaining taxable net capital gains 2005* 2006* 2007* 2008* $ $ $ $30,000 Total amount of Indiana net capital loss applied against prorated net capital gains in each year ($25,000) 0 Carryover(s) of unused prorated net capital losses available for 2009 ($15,000) $5,000 Remaining Indiana net capital gains after application of any post-1996 Indiana net capital loss carryovers. Instructions for Schedule A, continued as a percentage, by the total amount of tax due to determine the amount of tax attributable to the loan. This is the amount of credit that may be available. The actual credit is equal to the lesser of the actual taxes paid to the domiciliary state for the loan transaction and the amount due to Indiana on the loan transaction. If the taxpayer’s domiciliary state grants a credit for taxes paid to other states, the credit available for purposes of Indiana’s tax must be reduced by the amount of the credit granted by the taxpayer’s domiciliary state. (See the instructions for completing Schedule FIT-NRTC on page 18.) Line 23. Total Adjusted Gross Income: Subtract line 22 from line 21. If subtotal is less than zero, enter -0-. Line 24. Indiana Net Operating Loss Deduction: Only those unused net operating losses incurred for taxable years beginning after Dec. 31, 1990, may be deducted. The amount to report on this line is the Indiana portion of the net operating loss, and it cannot exceed the amount reported on line 23. Net operating losses can be carried forward for 15 years. There is no provision for net operating loss carrybacks. You must complete and enclose Schedule FIT-20NOL with the return. (See page 24 for instructions.) Nonresident credits are determined for each taxpayer member of a unitary group on an individual basis, notwithstanding that the adjusted gross income is reported on a combined basis for all members of a unitary group. Line 25. Indiana Adjusted Gross Income: Subtract line 24 from line 23. Line 29. Net Financial Institution Tax Due: Subtract the amount on line 28 from the amount on line 26. Line 26. Indiana Financial Institution Tax Due: Multiply the amount on line 25 by 8.5 percent. If line 25 is a loss amount, enter zero on this line. Line 30. Use Tax Due: Taxpayers are required to report and pay 6 percent use tax as a part of their financial institution tax return on purchases made between Jan. 1, 2008 and March 31, 2008, where sales tax was not charged. They are required to report and pay 7 percent use tax on purchases made between April 1, 2008 and Dec. 31, 2008, Purchases subject to use tax include (but are not limited to) subscriptions to magazines and periodicals, and property purchased exempt from tax by utilizing an exemption certificate, and later converted to a non exempt use by the business. To calculate the amount of purchases subject to the use tax, please see FIT-20 Schedule SUT, on page 18, and enter the amount on line 30. Line 28. Nonresident Taxpayer Credit (816): To claim this credit, you must enclose a copy of your domiciliary state’s tax return. Nonresident taxpayers might be able to claim a credit for taxes paid to their domiciliary states. To be eligible to claim the credit, the following conditions must be met: (1) the receipt of interest or other income from the loan is attributed to both the domiciliary state and also to Indiana; and (2) the principal amount of the loan is at least $2 million. To determine the amount of tax attributable to the loan transaction, divide the total receipts from qualified loans by the total receipts attributable to Indiana. Multiply that quotient, expressed For more information regarding use tax, call (317) 233-4015. Line 31. Subtotal Due: Add line 29 and line 30. 11 American LegalNet, Inc. www.FormsWorkflow.com Tax Liability Credits Line 32. Neighborhood Assistance Tax Credit credit for each teacher hired is the lesser of either $2,500 or 50 percent of the compensation paid. The qualified positions must be certified by the Department of Education (DOE), and the Qualified Position Certificate must be enclosed with the employer’s tax return. Contact the DOE at (317) 232-6676 for information about this credit. For additional information, visit their Web site at www.doe.state.in.us/legal 828 If you made a contribution to the Neighborhood Assistance Program (NAP) or engaged in activities to upgrade areas in Indiana, you might be able to claim a credit for this assistance. Contact the Indiana Housing and Community Development Authority, Neighborhood Assistance Program, 30 S. Meridian, Suite 1000, Indianapolis, IN 46204. Or you can call them at telephone number (317) 232-7777 for more information. Lines 36 and 37 - Other Tax Liability Credits Available to Financial Institutions Approval Form NC-20 must be enclosed with the return to claim this credit. For more information about this credit, get Form NC-10 at www.in.gov/dor/3508.htm and Income Tax Information Bulletin #22 at www.in.gov/dor/3650.htm Claim other allowable tax liability credits by entering the name, credit ID code number, and amount using line 36 or 37. The total nonrefundable tax liability credit is limited to the amount of income tax on line 29, unless otherwise noted. If your claim exceeds the amount of your tax liability, you must adjust by recalculating the credit to the amount that you can apply. Line 33. Enterprise Zone Employment Expense Tax Credit If you qualify for the refundable Economic Development for a Growing Economy (EDGE) job retention credit, claim that credit on line 42. 812 This credit is based on qualified investments made within an Indiana enterprise zone. It is the lesser of 10 percent of qualifying wages or $1,500 per qualified employee, up to the amount of tax liability on income derived from an enterprise zone. Enclose the completed Schedule EZ 2 to the return. A detailed explanation or supporting schedule must be enclosed with the return when claiming any credits on lines 36, 37, and 42. Refer Income Tax Information Bulletin #59 at www.in.gov/dor/3650.htm for more information about Indiana tax credits available to taxpayers. Get Indiana Schedule EZ 1, 2, and 3 at www.in.gov/dor/3515.htm for more information on how to calculate this credit. Line 34. Enterprise Zone Loan Interest Tax Credit Alternative Fuel Vehicle Manufacturer Credit 845 A credit is available for up to 15 percent for qualified investments made between Jan.1, 2007 and Dec. 31, 2012 within Indiana. This credit applies to expenditures for the manufacture or assembly of alternative fuel vehicles. An alternative fuel vehicle is any vehicle designed to operate using methanol, denatured alcohol, E85, natural gas, liquefied petroleum gas, hydrogen, coal-derived liquid fuels, nonalcohol fuels derived from biological material, P-Series fuels, or electricity. 814 This credit can be for up to 5 percent of the interest received from all qualified loans made during a tax year for use in an active Indiana enterprise zone. Get Information Bulletin #66 at www.in.gov/dor/3650.htm and Indiana Schedule LIC at www.in.gov/dor/3515.htm for more information on how to calculate this credit. Schedule LIC must be enclosed if claiming this credit. For more information on the qualifications for obtaining this credit, contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204; call them at (317) 232-8827; or visit their Web site at www.in.gov/iedc/ Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204; call them at (317) 232-8827; or visit their Web site at www.in.gov/iedc/ for additional information. Also get Income Tax Information Bulletin #103 at www.in.gov/dor/3650.htm Note: Claimants must be in good standing to remain eligible for the enterprise zone loan interest credit. The term “zone business” includes an entity that claims certain tax benefits available to businesses located in an enterprise zone. A taxpayer can claim the enterprise zone loan interest credit only if that taxpayer pays a registration fee, provides additional assistance to urban enterprise associations required of zone businesses, and complies with requirements adopted by the Indiana Economic Development Corporation. Line 35. Teacher Summer Employment Tax Credit Blended Biodiesel Credits 803 Credits are available for taxpayers who produce biodiesel and/or blended biodiesel at an Indiana facility (certified by the IEDC) and for dealers who sell users blended biodiesel at retail An approved Department of Revenue Form BD-100 must be enclosed to verify the claimed credit. Contact the Indiana Economic Development Corporation, Biodiesel Credit Certification, One North Capitol, Suite 700, Indianapolis, IN 46204.You can also call them at (317) 232-8827 or visit their Web site at www.in.gov/iedc/ for more information. 833 If you hire designated shortage-certified teachers during school summer vacation, you might be able to take a tax credit. The Also, get Income Tax Information Bulletin #91 at www.in.gov/dor/3650.htm for additional information. 12 American LegalNet, Inc. www.FormsWorkflow.com Capital Investment Credit 804 The entity can assign the credit to a lessee who remains subject to the same requirements. The assignment must be in writing, and any consideration may not exceed the value of the part of the credit assigned. Both parties must report the assignment on their state income tax returns for the year of assignment. A capital investment cost credit is available for certain qualified capital investments made in Shelby County. The IEDC certifies the amount of credit. It is equal to 14 percent of the amount of the approved qualified investment and is claimed over a sevenyear period. For more information, contact the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis, IN 46204. For information regarding the definitions, procedures, and qualifications for obtaining this credit, contact the Indiana Economic Development Corporation, Enterprise Zone Board, One North Capitol, Suite 700, Indianapolis, IN 46204, or visit their Web site at www.in.gov/iedc You can also visit their Web site at www.in.gov/iedc/ for more information about this credit. Employer Health Benefit Plan Credit Coal Gasification Technology Investment Credit 806 A credit is available for a qualified investment in an integrated coal gasification power plant or a fluidized bed combustion technology that serves Indiana gas utility and electric utility consumers. This can include an investment in a facility located in Indiana that converts coal into synthesis gas that can be used as a substitute for natural gas. The amount of the credit is the lesser of $2,500 or $50 multiplied by the number of employees enrolled in the health benefit plan. The employer is required to make health insurance available to the taxpayer’s employees for at least two years after the employer first offers the health benefit plan. You must file an application for certification with the IEDC. If the credit is assigned, it must be approved by the utility regulatory commission and taken in 10 annual installments. Get Income Tax Information Bulletin #101 at www.in.gov/dor/3650.htm for more information. The amount of credit for a coal gasification power plant is 10 percent of the first $500 million invested and 5 percent for any amount over that. The amount of credit for a fluidized bed combustion technology is 7 percent of the first $500 million invested and 3 percent for any amount over that. Enclose with the return proof of your continued eligibility for the credit and proof of expenditures necessary to calculate the credit. Ethanol Production Credit For more information, contact the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis, IN 46204, or visit their Web site at www.in.gov/iedc/ 815 An Indiana facility with a capacity to produce 40 million gallons of grain ethanol per year might be eligible for a credit. Proof of information for the credit calculation plus a copy of the Certificate of Qualified Facility issued by the Indiana Recycling and Energy Development Board must be enclosed with the return to verify this credit. Also get Income Tax Information Bulletin #99 at www.in.gov/dor/3650.htm Community Revitalization Enhancement District Credit 842 A new credit is available to certain taxpayers who begin offering health insurance to their employees. An employer who did not provide health insurance to employees prior to Jan. 1, 2007, and makes health insurance available to its employees may be eligible for a credit. Get Income Tax Information Bulletin #93 at www.in.gov/dor/3650.htm for more information. 808 A state and local income tax liability credit is available for qualified investments for the redevelopment or rehabilitation of property within a community revitalization enhancement district. The expenditure must be approved by the IEDC before it is made. The credit is equal to 25 percent of the qualified investment made by the taxpayer during the taxable year. Effective for tax years beginning after Dec. 31, 2007, there is an additional tax credit for cellulosic ethanol production. Taxpayers who produce at least 20 million gallons of cellulosic ethanol in a taxable year may apply this credit, but only against the state tax liability attributable to business activity taking place at the Indiana facility at which the cellulosic ethanol was produced. The Department has the authority to disallow any credit if the taxpayer ceases existing operations, substantially reduces its operations within the district or elsewhere in Indiana, or reduces other Indiana operations to relocate them into the district. 13 American LegalNet, Inc. www.FormsWorkflow.com the application and plan for rehabilitation. A lessee of property in an industrial recovery site may be assigned tax credits based on the owner’s or developer’s qualified investment within the designated industrial recovery site. File Application for Ethanol Credit Certification, State Form 52302, with the Indiana Economic Development Corporation, Ethanol Credit Certification, One North Capitol, Suite 700, Indianapolis, IN 46204. Call them at (317) 232-8827 or visit their Web site at www.in.gov/iedc/ for additional information. Headquarters Relocation Credit Get additional information regarding procedures for obtaining this credit from the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis, IN 46204; by calling them at (317) 232-8827; or by visiting their Web site at www.in.gov/iedc 818 A business with annual worldwide revenue of $100 million and at least 75 employees that relocates its corporate headquarters to Indiana may be eligible for a credit. The credit may be as much as 50 percent of the cost incurred in relocating the headquarters. Military Base Recovery Credit For more information, get Income Tax Information Bulletin #97 at www.in.gov/dor/3650.htm Hoosier Business Investment Credit 820 This credit is for qualified investments, which include the purchase of new telecommunications, production, manufacturing, fabrication, processing, refining, or finishing equipment that is directly related to expanding the workforce in Indiana. Qualified investments also include onsite infrastructure improvements, construction costs, retooling existing machinery and equipment, and costs associated with special-purpose buildings and foundations. It does not include property that can be readily moved out of Indiana. A claimant may also be a lessee of property in a military base recovery site and be assigned part of the tax credit based on a qualified investment within a military recovery site. The assignment must be in writing, and any consideration may not exceed the value of the part of the credit assigned. Both parties must report the assignment on their state income tax returns for the year of assignment. The lessee can use the credit to offset its total state income tax liability, but any excess credit must be carried forward to the immediately following tax year(s). This credit is administered by the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN, 46204. Visit their Web site at www.in.gov/iedc/ or call them at (317) 233-3638 for additional information. Also, get Income Tax Information Bulletin #95 at www.in.gov/dor/3650.htm For more information about this credit, contact the Indiana Economic Development Corporation, One North Capitol, Suite 600, Indianapolis, IN, 46204; call them at (317) 232-8827; or visit their Web site at www.in.gov/iedc The taxpayer is required to submit to the Department a copy of the certificate from the IEDC verifying the amount of tax credit for the taxable year. Individual Development Account Credit Riverboat Building Credit 832 A state tax liability credit has been established for a taxpayer who builds or refurbishes a riverboat licensed to conduct legal gambling in Indiana. This credit is equal to 15 percent of the qualified investment and can be carried forward to subsequent tax years. The Indiana Economic Development Corporation must approve the costs of the qualified investment before the costs are incurred. 823 A tax credit is available for contributions made to a community development corporation participating in an individual development account (IDA) program. The IDA program is designed to assist qualifying low-income residents in accumulating savings and building personal finance skills. The organization must have an approved program number from the Indiana Housing and Community Development Authority (IHCDA) before a contribution qualifies for preapproval. The credit is equal to 50 percent of the contribution, which must not be between $100 and $50,000. Contact the Indiana Economic Development Corporation, Development Finance Division, One North Capitol, Suite 700, Indianapolis, IN, 46204; call them at (317) 234-0616; or visit their Web site at www.in.gov/iedc/ for additional information. Applications for the credit are filed through the IHCDA by using Form IDA-10/20. An approved Form IDA 20 must be enclosed with the return if claiming this credit. To request additional information about the definitions, procedures, and qualifications for obtaining this credit, contact the Housing and Community Development Authority, 30 S. Meridian St., Suite 1000, Indianapolis, IN 46204. Or call them at (317) 232-7777. Industrial Recovery Credit 827 A taxpayer who is an owner or a developer of a military base recovery site might be eligible for a credit if investing in the rehabilitation of real property located in a military base recovery site according to a plan approved by the IEDC. The maximum credit is 25 percent of the cost of the rehabilitation of real property located in a designated military base recovery site based on the age of the building. Small Employer Qualified Wellness Program Credit 843 A taxpayer who is a small employer is entitled to a tax credit equal to 50 percent of the costs they incur during the taxable year for providing a qualified wellness program for their employees during that taxable year. A small employer is defined as an employer actively engaged in business that has between 2 and 100 eligible employees, with a majority of them working in Indiana. 824 This credit is based on a taxpayer’s qualified investment in a vacant industrial facility located in a designated industrial recovery site. The Indiana Economic Development Corporation approves The wellness program must be certified by the State Department of Health (DOH), and the certificate must be enclosed with the 14 American LegalNet, Inc. www.FormsWorkflow.com tax return before the credit can be approved. The credit can be carried forward but cannot be carried back or refunded. For more information, contact the DOH at www.IN.gov/isdh Also get Income Tax Information Bulletin #102 at www.in.gov/dor/3650.htm will accept the federal extension date, plus an additional 30 days. However, an extension of time to file is not an extension of time to pay. You must pay at least 90 percent of the current year liability by the original due date of the franchise tax return. Venture Capital Investment Credit Line 42. Other Payments/Credits: Enter any other payments that are allowable and enclose an explanation. Claim the approved EDGE Program and Job Retention Credits (EDGE) credit against financial institution tax on this line. Enter the total amount on line 41c. 835 An entity that provides qualified investment capital to an Indiana business might be eligible for this credit. Currently, this credit is limited to investments that occur before Dec. 31, 2008. The carryforward provision is limited to five years. The EDGE credit for job retention is a state refundable tax liability credit. This credit is for businesses who conduct certain activities designed to foster job creation or job retention in Indiana. A taxpayer claiming this credit must include all information that the Department determines necessary for the calculation of the credit on the annual state tax return. The approved credit letter from the IEDC and a computation of the credit must be enclosed with the return; otherwise, this credit will not be allowed. Certification for this credit must be obtained from the Indiana Economic Development Corporation, Development Finance Office, VCI Credit Program, One North Capitol, Suite 700, Indianapolis, IN 46204. You can also call them at (317) 232-8827 or visit their Web site at www.in.gov/iedc A copy of the certificate and proof that the investment capital was provided to the qualified business within two years after the certification of the investment plan must be submitted to the Department when filing the return. Voluntary Remediation Credit Contact the Indiana Economic Development Corporation, One North Capitol, Suite 700, Indianapolis., IN 46204, for eligibility requirements, or visit www.in.gov/iedc for additional information. 836 A voluntary remediation state tax credit is available for qualified investments involving the redevelopment of a brownfield and environmental remediation. The Indiana Department of Environmental Management and the Indiana Development Housing and Community Development Authority must determine and certify that the costs incurred in a voluntary remediation are qualified investments. Line 43. Total Payments: Add lines 40 through 42. Line 44. Balance of Tax Due: Subtract line 43 from line 39. Line 45. Penalty for Underpayment: Enter the penalty, if any, for underpayment of estimated tax as calculated on Schedule FIT-2220. Carryover of prior unused credit can be carried back only one year or carried forward up to five years. Note: Effective for tax year 2008, if a taxpayer’s annual liability exceeds $2,500, filing quarterly estimated payments to remit 25 percent of the estimated annual tax liability is required. The previous threshold in effect was $1,000 through tax year 2007. For additional information, contact the Indiana Department of Environmental Management, 100 N. Senate Ave., Room N1101, Indianapolis, IN 46204, or visit their Web site at www.in.gov/idem Line 46. Interest: If payment is made after the original due date, interest must be included with the payment. Interest is calculated from the original due date of the return until the date of payment. Line 38. Total Credits: Add the amounts on lines 32 through 37b. Line 39. Total Tax Due: Subtract the amount on line 38 from the amount on line 31. Line 40. Total Estimated Tax Paid: Enter the total amount of estimated tax paid for the taxable year. Itemize each quarterly payment in the spaces provided. Contact the Department for the current rate of interest charged by calling (317) 233-4015, or get Departmental Notice #3 from our Web site (www.in.gov/dor/3618.htm). An extension of time to file does not grant an extension of time to pay any tax due; therefore, interest must be calculated. Line 47. Late Penalty: Enter the computed penalty amount that applies. A. If a payment is made after the original due date, a pen- alty that is the greater of $5 or 10 percent of the remain- ing tax due must be entered. The penalty for late pay- ment or late filing will not be imposed if all three of the following conditions are met: (1) A valid extension of time to file exists; (2) At least 90 percent of the tax was paid by the original due date; and (3) The remaining tax is paid by the extended due date. List all members included in a combined return by completing FIT-20 Schedule H on page 4 of the return. Show any amount of estimated tax you are claiming that might have been paid by a member under his federal identification number. Line 41. Extension Payment and Prior Year Overpayment: Enter on line (a) the payment made resulting from an extension of time to file request, and on line (b) list your carryover credit of a prior year overpayment. This provision is applicable to a prioryear overpayment of the financial institution tax only. Indiana 15 American LegalNet, Inc. www.FormsWorkflow.com  B. Note: You can decide at any time to revoke the authorization for the Department to be in contact with your personal representative. If you do decide this, you must tell us that in a signed statement. Include your name, your Social Security number, and the year of your tax return. Mail your statement to Ind