1 American LegalNet, Inc. www.FormsWorkFlow.com INDIANA IT-20 CORPORATE Income Tax Booklet Year 2010 & Fiscal Years Ending in 2011 SP 259 (R8/9-10) Contents Page What’s New for 2010? ........................................................................................................................................................................................3 Legislative Changes to Adjusted Gross Income Tax for 2010 .......................................................................................3 Administrative Highlights ................................................................................................................................................3 Introduction to Corporate Taxation ...............................................................................................................................3 How Do I Register? ............................................................................................................................................................5 Business Entities (in General) ...........................................................................................................................................5 Types of Corporate Entities and Returns to File ............................................................................................................6 Other Related Income Tax Filing Requirements of a Corporation ...........................................................................10 General Filing Requirements for Form IT-20 ...............................................................................................................11 Instructions for Completing Form IT-20 ......................................................................................................................14 Computation of Adjusted Gross Income Tax ...............................................................................................................15 Total Payments and Credits ........................................................................................................................................... 22 Schedule M – Alternate Adjusted Gross Income Tax Calculation ........................................................................... 24 Return Pages 1-2: Form IT-20 – Indiana Corporate Adjusted Gross Income Tax Return .................................... 25 Return Page 3: IT-20 Schedule E – Apportionment of Income for Indiana ............................................................ 27 Return Page 4: IT-20 Schedule PIC – Disclosure of Intangible Expense and Directly Related Intangible Interest Expenses/Schedule H – Additional Explanation or Adjustment of Items Elsewhere on Return/ Schedule CC-20 – College and University Contribution Credit ............................................................................... 28 Return Pages 5-6: IT-20 Schedule F – Allocation of Non-business Income and Indiana Non-unitary Partnership Income......................................................................................................................................................... 29 Schedule IT-2220 – Penalty for Underpayment of Corporate Income Tax ..............................................................31 Schedule IT-20NOL – Corporate Income Tax Indiana Net Operating Loss Deduction ....................................... 32 Specific Instructions for Completing IT-20 Schedule E ............................................................................................. 34 Specific Instructions for Completing IT-20 Schedule PIC ......................................................................................... 36 Specific Instructions for Completing IT-20 Schedule F ..............................................................................................37 Instructions for Schedule IT-2220 for 2010 .................................................................................................................. 39 Sales/Use Tax Worksheet ............................................................................................................................................... 40 Instructions for Schedule IT-20NOL .............................................................................................................................41 About Other Tax Liability Credits ................................................................................................................................ 44 About Enterprise Zone Tax Credits .............................................................................................................................. 44 Special Reminders ............................................................................................................................................................52 2 American LegalNet, Inc. www.FormsWorkFlow.com New Research Expense Credit Calculation What’s New for 2010? The definition of adjusted gross income (AGI) is updated to correspond to the federal definition of adjusted gross income contained in the Internal Revenue Code (IRC). Effective Jan. 1, 2010, for Indiana qualified research expenses incurred after Dec. 31, 2009, a taxpayer may choose to have the amount of the research expense tax credit calculated as being equal to 10% of the part of the taxpayer’s Indiana qualified research expense for the taxable year that exceeds 50% of the taxpayer’s average Indiana qualified research expense for the three taxable years preceding the taxable year for which the credit is being determined. However, if the taxpayer did not have Indiana qualified research expense in any one of the three taxable years preceding the taxable year for which the credit is being determined, the amount of the research expense tax credit is equal to 5% of the taxpayer’s Indiana qualified research expense for the taxable year. For tax year 2010, any reference to the IRC and subsequent regulations means the Internal Revenue Code of 1986, as amended and in effect on Jan. 1, 2010. For a complete summary of new legislation regarding taxation, see the 2010 Summary of State Legislation Affecting the Department of Revenue at www.in.gov/dor/3656.htm Third-Year Phase-in of Single-Factor Sales Formula for Apportionment of Income Elimination of EDGE Requirement Legislative Changes to Adjusted Gross Income Tax for 2010 References to the Internal Revenue Code Public Law (PL) 113-2010, SEC. 54 amended Indiana Code (IC) 6-3-1-11. Effective Jan. 1, 2010 (retroactive), a business is no longer required to have at least 35 employees to qualify for an EDGE credit for job retention. PL 162-2006 amended IC 6-3-2-2 to transition to a singlefactor formula based on sales for apportioning business income of corporations and nonresident persons for taxable years beginning in 2008. The total value of sales, property, and payroll factors will be gradually diminished in each of the succeeding taxable years until 2011. For taxable years beginning in 2010, the numerator of the apportionment formula is the sum of the property factor plus the payroll factor plus the product of the sales factor multiplied by 18. Also for taxable years beginning in 2010, the denominator is 20. Administrative Highlights Annual Public Hearing In accordance with the Indiana Taxpayer Bill of Rights, the Department will conduct an annual public hearing on Tuesday, June 7, 2011. Please come and share your ideas about how the Department of Revenue can better administer Indiana tax laws. The hearing will be held from 9 a.m. to 11 a.m. in the Indiana Government Center South, Conference Center - Room 18, 402 W. Washington Street, Indianapolis, IN. If you can’t attend, please submit your concerns in writing to: Indiana Department of Revenue, Commissioner’s Office, 100 N. Senate Avenue, Indianapolis, IN 46204. For more information, get Income Tax Information Bulletin #12 at www.in.gov/dor/3650.htm New Credit for Scholarship Contributions For taxable years beginning after Dec. 31, 2009, a deduction for contributions to scholarship-granting organizations will be available. The contribution must be for use by the scholarshipgranting organization in a school scholarship program. The credit will be equal to 50% of the contribution made. Introduction to Corporate Taxation Indiana has three kinds of corporate income tax:  A corporation doing business in Indiana is subject to the AGI tax. Any corporation earning income from Indiana sources is also subject to the AGI tax.  Any entity transacting the business of a financial institution in Indiana is subject to a franchise tax. Taxpayers subject to the financial institution tax are exempt from the AGI tax.  Any corporation providing utility services in Indiana is subject to the utility receipts tax. Tax is imposed on the gross receipts received from selling utility services. For more information, see the section “About Other Tax Liability Credits,” later in this booklet. New Credit for Employers A new credit is available for corporations and pass-through entities that employ new workers. The credit is allowed if the business employs at least 10 new qualified employees and, after Dec. 31, 2009, the business:  Relocates or locates its operations in Indiana;  Incorporates in Indiana; or  Expands it operations in Indiana. Indiana recognizes a variety of business organizations. How the business is organized determines the type of tax return(s) it must fi le. It is important you know the tax-related requirements before setting up operations in Indiana. For more information, see Income Tax Information Bulletin #106 at www.in.gov/dor/3650.htm and the section “About Other Tax Liability Credits,” later in this booklet. 3 American LegalNet, Inc. www.FormsWorkFlow.com General Filing Requirements Deriving Income from Indiana Sources All types of corporations, business corporations, professional corporations, C corporations, and subchapter S corporations have essentially the same filing requirements. They might have different tax responsibilities, but they are still corporations. Any corporation doing business and having gross income in Indiana must fi le a corporation income tax return. It must do this regardless of whether it has taxable income (unless it’s exempt under IRC section 501). If a corporation has business income from both within and outside Indiana, the entity must apportion its income using the three-factor formula under IC 6-3-2-2. The one exception is if the entity is a financial institution or domestic insurance company. Business income is all income that arises from the conduct of the taxpayer’s trade or business operations. Nonbusiness income is specifically allocated under IC 6-3-2-2(g) through (k). Starting a New Business in Indiana Nonprofit entities can be organized formally or informally. Contact the Internal Revenue Service for the federal requirements to obtain nonprofit (commonly known as 501(c) (3)) status. The IRS publishes an information booklet titled Tax Exempt Status for Your Organization, Publication 557. Contact: Internal Revenue Service: (800) 829-1040 Publications: (800) 829-3676 http://www.irs.ustreas.gov/ Formal business organizations require some fi ling with the Secretary of State, Corporations Division. We suggest that you consult an attorney before forming a formal business entity. After a business entity has formed or been granted authority to do business in Indiana, it has an ongoing responsibility to file regular business entity reports. These reports must be filed every year by nonprofit organizations and every two years by for-profit businesses. The fi lings are due during the anniversary month of the organization’s formation. To register your nonprofit status with the state, you must submit a Nonprofit Organization Application for Sales Tax Exemption (NP-20A). Contact: Indiana Department of Revenue Tax Administration P.O. Box 7206 Indianapolis, IN 46207-7206 (317) 233-4015 All organizational fi lings and reports for formal business entities should be sent to: Indiana Secretary of State, Business Services Division 302 W. Washington Street, Room E018 Indianapolis, IN 46204 (317)-232-6576 www.in.gov/sos/business/2381.html Taxable Period Information Line and Front Desk Hours: 8:00 a.m. to 5:30 p.m., Monday through Friday (except state holidays) Forms are available via fax 24 hours a day. Call (800) 726-8000 (in Indiana) Indiana tax law requires all corporations to adopt their federal tax year for reporting income to Indiana. A federal entity election or default classification is recognized for state AGI tax. Doing Business in Indiana For Indiana AGI tax purposes, the term doing business generally means the operation of any business enterprise or activity in Indiana, including but not limited to the following: 1. Maintenance of an office, a warehouse, a construction site, or another place of business in Indiana; 2. Maintenance of an inventory of merchandise or material for sale, distribution, or manufacture; 3. Sale or distribution of merchandise to customers in Indiana directly from company-owned or -operated vehicles when the title of merchandise is transferred from the seller or distributor to the customer at the time of sale or distribution; 4. Rendering of a service to customers in Indiana; 5. Ownership, rental, or operation of business or property (real or personal) in Indiana; 6. Acceptance of orders in Indiana with no right of approval or rejection in another state; 7. Interstate transportation; or 8. Maintenance of a public utility. If you need more detailed information about new businesses, check out the general requirements for starting your own business in the Business Owner’s Guide to State Government. Registering with the Indiana Department of Revenue If you are starting a new business in Indiana, you might need to register with the Indiana Department of Revenue (IDOR). Registration is required if you will have employees. It’s also required if you intend to sell (retail or wholesale) or rent or lease tangible personal property. Any company registering for Indiana withholding tax must provide its federal employer identification number (EIN). If you do not have an EIN, you can register for one at www.irs.gov/businesses/small/article/0,,id=98350,00.html If you indicate on your Business Tax Application (BT-1) that you will be collecting Indiana gross retail sales tax, you will be issued a Registered Retail Merchants Certificate (RRMC). An RRMC must be displayed at each location where you are doing business. A company that provides a service but has no employees might not need to register. If you are unsure, contact the Department at (317) 233-4015. Doing business by a corporate entity that is transacting the business of a financial institution in Indiana is similarly defined under IC 6-5.5-3-1. 4 American LegalNet, Inc. www.FormsWorkFlow.com Mail the completed application to: Indiana Department of Revenue Tax Administration 100 N. Senate Avenue Room N281 Mail Stop 105 Indianapolis, IN 46204-2253 Sales Tax Exemption Certificates Registered retail merchants must assess Indiana sales tax on any sale of tangible personal property unless the customer presents a valid exemption certificate. The exemption certificate is kept by the seller as part of its business records and sales invoices. It must:  Be legible;  Be signed; and  Include the customer’s tax exempt number. If you mail Form BT-1, please allow approximately 4-6 weeks to complete the registration process. You can request that a blank Form BT-1 be mailed to you. A business registered as a retail merchant can issue an exemption certificate and purchase tangible personal property exempt from sales tax when the property is:  Purchased for resale;  Made into property being resold;  Directly used in the manufacturing of tangible personal property to be sold; or  Exempt by law. In Person: Visit our Taxpayer Service Center in the Indiana Government Complex or at any of the IDOR district offices. Simply bring in your completed BT-1 application for same-day service. Register Multiple Locations: You must complete a separate BT-1 for each location you need to register. If you want to consolidate tax fi lings for all or some of your locations, complete Form BT-1C (Authorization for Consolidated Sales Tax Filing Number). This form is included in the BT-1 Packet. How Do I Register? A single application (Form BT-1) is used to register with the Department for the following:  Alcohol and tobacco tax;  Sales tax;  Withholding tax;  Food and beverage tax;  County innkeeper’s tax;  Motor vehicle rental excise tax; and  Prepaid sales tax on gasoline. Important Reminders:    A separate application is required for each business location. Internet: If you need to register your business with the Department, you can do so online using the Department’s Online BT-1 application. To avoid delays in processing applications, please make sure all the applicable information is complete and the form is signed. The application will be delayed if the business itself has any outstanding tax liabilities. When you close your business, you are responsible for notifying the Department of the closure. Failure to do this can result in billings being issued for failure to fi le returns. Business Entities (in General) Which Indiana Income Tax Form(s) to File? INtax: The type of form you file varies depending on how your corporation is organized and the type of income it earns. An organization fi ling a federal return and doing business in Indiana must also fi le the comparable Indiana return. The name of the corporation (which must include the word Corporation, Company, Incorporated, Limited, or an abbreviation thereof) must be included on all returns. When fi ling your Indiana corporate forms, use your federal employer identification number (EIN) to identify your return. The IRS assigns this number to business entities at www.irs.gov/businesses/small/ article/0,,id=98350,00.html You can use Indiana’s free online business tax filing program to directly manage your sales and withholding tax accounts. After your business is registered, you can use INtax to complete the registration process. With INtax, you can fi le and pay your business taxes and much more. At this time, you can manage your obligations for:  Indiana retail sales;  Out-of-state sales;  Prepaid and metered pump sales;  Tire fee sales; and  Payroll withholding taxes.  Visit INtax at www.in.gov/dor/4336.htm For Indiana tax purposes, a corporation’s tax fi ling includes other less formal organizations and unincorporated entities, such as general partnerships and nonprofit associations. To determine which return to fi le, use the following list. File the specified state form(s) to report the income, gains, losses, deductions, and credits. Also use it to figure your entity’s corporate income tax liability. Paper: You can complete the Form BT-1 application online and then print and sign your registration. 5 American LegalNet, Inc. www.FormsWorkFlow.com The state returns are due 30 days after the due date for the fi ling of the federal return. Unless otherwise specified, the state tax returns are due on the 15th day of the fourth month following the close of the corporation’s taxable year. The URT is due on the retail sale of these services in Indiana. The URT tax rate is 1.4 percent. See Commissioner’s Directive #18 at www.in.gov/dor/3617.htm for more information. Entities subject to this tax must also file Form URT-1. A corporation or an entity doing business in Indiana is subject to the corporate adjusted gross income tax (AGIT). The corporate AGIT tax rate is 8.5 percent. Certain entities are exempt from the tax (see IC 6-3-2-2.8 and 6-3-2-3.1). A brief explanation of the tax treatment for each type follows. Forms for Specific Organizations Cooperative Association Filing federal Form 1120-C, fi le: Form IT-20 If a utility service provider, also fi le Form URT-1 A cooperative association (including a subchapter T cooperative) that engages in farming and reports its income and deductions on federal Form 1120-C must fi le Form IT-20. If this applies to you, check box J-5 in the taxpayer identification section on the front of the return. Types of Corporate Entities and Returns to File For-Profit Corporations (Domestic and Foreign) A corporation can be formed for profit or nonprofit purposes. Forming a corporation creates a specific legal entity. An organization incorporated in this state (a domestic corporation) must have on fi le Articles of Incorporation 4159 with the Corporations Division of the Secretary of State. If the cooperative is in the business of providing a utility service, it must also fi le Form URT-1 to report any retail sales of utility services to its nonmembers. Note: The utility receipts tax return is due on the 15th day of the fourth month following the close of the cooperative association’s taxable year. An organization incorporated in another state or with a foreign government must have on file an Application for Certificate of Authority 38784 with the Indiana Secretary of State. This allows a foreign (outside Indiana) corporation to do business in Indiana. General or Regular Corporations State Return(s) to File The corporate adjusted gross return, Form IT-20, is due on the 15th day of the 10th month following the close of the cooperative association’s tax year. The utility receipts return, Form URT-1, is due on the 15th day of the 4th month following the close of the association’s tax year. State Return(s) to File Filing federal Form 1120, file: Form IT-20, or If meeting 80 percent income test as a financial institution, file: Form FIT-20 Filing federal Form 1120, fi le: Form IT-20 If a utility service provider, also file: Form URT-1 If a utility service provider, also fi le: Form URT-1 Corporation (Engaged in Farming) 80 Percent Income Test: Is the corporation primarily in the business of extending credit? If so, it might be subject to the financial institution franchise tax (FIT) in Indiana. If 80 percent or more of the taxpayer’s gross income comes from extending credit, servicing loans, or a credit card operation, the FIT applies (see 45 IAC 17-2-4). You can also see Commissioner’s Directive #14 at www.in.gov/dor/3617.htm for more information. State Return(s) to File A corporation that engages in farming and reports its income and deductions on federal Form 1120 or 1120-A must fi le Form IT-20. The state tax return(s) is due on the 15th day of the fourth month following the close of the corporation’s tax year. Domestic Corporation Form IT-20 If a utility service provider, also fi le: Form URT-1 If a financial institution (80 percent income test), file: Utility Service Provider: Are you in business as a utility service? If so, you might be subject to the utility receipts tax (URT) on those gross receipts. Gross receipts are defined as the value received for the retail sale of utility services. State Return(s) to File Filing federal Form 1120, fi le: The FIT rate of tax is the same as the AGIT rate: 8.5 percent. If the taxpayer is subject to the FIT, it is exempt from the AGIT (IC 6-5.5-9-4). It must instead file on Form FIT-20. Form FIT-20 An organization incorporated in this state is known as a domestic corporation for tax purposes. It must fi le an Indiana return to report taxable income if it is not otherwise exempt. You owe this tax if you furnish any of the following:  Electrical energy;  Natural gas;  Water;  Steam;  Sewage; or  Telecommunications services. The state tax return(s) is due on the 15th day of the fourth month following the close of the corporation’s tax year. 6 American LegalNet, Inc. www.FormsWorkFlow.com Exempt Organizations: Interest Charge Domestic International Sales Corporation (IRC section 992) Foreign Corporation Filing federal Form 1120 or 1120-F, fi le: Form IT-20 If a financial institution (80 percent income test), file: State Return(s) to File State Return(s) to File Filing federal Form 1120-IC-DISC, fi le: (Refer to the section on nonprofit corporations) Form FIT-20 Form IT-20 The state tax return is due on the 15th day of the fourth month following the close of the corporation’s tax year. If a utility service provider, also fi le: Form URT-1 If a financial institution (80 percent income test), file: Form FIT-20 Life Insurance Company (Domestic) (IRC section 801) The state corporate income tax return is due on the 15th day of the fourth month following the close of the corporation’s tax year. The state tax return(s) is due on the 15th day of the fourth month following the close of the corporation’s tax year. Limited Liability Companies (Domestic and Foreign) If fi ling federal Form 1120, fi le: Form FIT-20 A limited liability company (LLC) may be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in federal regulation section 301.7701.3. An LLC has members rather than shareholders. If an entity with more than one member was formed as an LLC, it generally is treated as a partnership for federal income tax purposes. It therefore files Form 1065. The state tax return(s) is due on the 15th day of the fourth month following the close of the corporation’s tax year. State Return(s) to File Filing Form 1120-H, file: Form URT-1 If a financial institution (80 percent income test), fi le: A foreign corporation with authority to operate in Indiana generally must fi le its Indiana tax return on the Corporation Income Tax Return, Form IT-20. Form IT-20 If a utility service provider, also fi le: Form URT-1 Homeowner’s Association (IRC section 831) State Return(s) to File If fi ling federal Form 1065 or 1065B, fi le: Form IT-65 State Return(s) to File Filing federal Form 1120-FSC, fi le: Form IT-20 If a utility service provider, also fi le: Form IT-20 A domestic insurance company (organized under the laws of the state of Indiana) that elects to file the corporation income tax return instead of the premium insurance tax return must fi le on Form IT-20. It will be exempt from the insurance premium tax if it elects to pay the AGIT. If this applies to you, check box J-4 in the taxpayer identification section on the front of the return. A foreign corporation with authority to operate in Indiana (other than a life or property and casualty insurance company) generally must fi le its Indiana tax return on the Corporation Income Tax Return, Form IT-20. Foreign Sales Corporation (IRC section 922) State Return(s) to File Filing federal Form 1120-L, fi le: An organization incorporated in another state or with a foreign government is known as a foreign corporation for Indiana tax purposes. It must have a Certificate of Authority to do business in Indiana. You can get an application for a Certificate of Authority from the Indiana Secretary of State or the State Information Center. Form IT-20 A single-member LLC can report its income and deductions as a corporate entity instead. The LLC can fi le a Form 1120 or Form 1120-A only if it has fi led federal Form 8832, Entity Classification Election, to be treated as a corporation. A condominium management, residential real estate management, or timeshare association is subject to tax as a corporation if it elects to be treated as a homeowners association. It is not considered a nonprofit organization for Indiana tax purposes. Therefore, it must fi le as a for-profit corporation using Form IT-20. An LLC can be formed under state law by fi ling Articles of Organization 49459. An LLC based outside of Indiana must fi le an Application for Certificate of Authority of a Foreign Limited Liability Company to do business in Indiana, similar to what foreign corporations file. If the LLC qualifies under IRS guidelines to be treated as an association taxable as a corporation, it must fi le Form IT-20. The state tax return is due on the 15th day of the fourth month following the close of the entity’s tax year. The state tax return(s) is due on the 15th day of the fourth month following the close of the entity’s tax year. 7 American LegalNet, Inc. www.FormsWorkFlow.com Form IT-65 If fi ling federal Form 1120, fi le: Form IT-20 If a utility service provider, also fi le: Form URT-1 If a financial institution (80 percent income test), fi le: Form FIT-20 Form FIT-20 Personal Service Corporation (Domestic and Foreign) State Return(s) to File Filing federal Form 1120, fi le: Form IT-20 The state tax return for a personal service corporation, also known as a professional corporation, is due on the 15th day of the fourth month following the close of the corporation’s tax year. An LLP can be formed under state law by fi ling Articles of Registration of a Limited Liability Partnership with the Secretary of State. An LLP based outside of Indiana must fi le a Certificate of Authority or Notice of Foreign Limited Liability Partnership to do business in Indiana, similar to what foreign corporations fi le. Political Organization (IRC Section 527) State Return(s) to File If fi ling federal Form 1120-POL, fi le: Form IT-20 The state tax return is due on the 15th day of the fourth month following the close of the organization’s tax year. The state tax return(s) is due on the 15th day of the fourth month following the close of the entity’s tax year. Property and Casualty Insurance Company (Domestic) (IRC Section 831) Form IT-65 If fi ling federal Form 1120, fi le: Form IT-20 State Return(s) to File If fi ling federal Form 1120-PC, fi le: State Return(s) to File If fi ling federal Form 1065 or 1065B, fi le: Form IT-20 A domestic insurance company (organized under the laws of the state of Indiana) can elect to fi le the corporation income tax return instead of the premium insurance tax return. However, if it elects to do this, it must file on Form IT-20. It is exempt from the insurance premium tax if it elects to pay the AGIT. If this applies to you, check box J-4 in the taxpayer identification section on the front of the return. If a utility service provider, also fi le: Form URT-1 If a financial institution (80 percent income test), fi le: Form IT-20 The state tax return is due on the 15th day of the fourth month following the close of the fund’s taxable year. A limited liability partnership (LLP) can be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in federal regulation section 301.7701.3. The income of an LLP is taxed in the same manner as a general partnership’s income is. Limited Partnership (Domestic and Foreign) State Return(s) to File If a financial institution (80 percent income test), fi le: State Return(s) to File If fi ling federal Form 1065 or 1065B, fi le: Nuclear Decommissioning Funds (IRC Section 468A) If fi ling federal Form 1120-ND, fi le: Limited Liability Partnership (Domestic and Foreign) Form FIT-20 A limited partnership (LP) must have at least one general partner and one limited partner. The income is generally taxed in the same manner as a general partnership’s income is. An LP can be classified for federal income tax purposes as a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in federal regulation section 301.7701.3. The LP can be formed under state law by filing a Certificate of Limited Partnership with the Secretary of State. An LP based outside of Indiana must fi le a Certificate of Authority or Application of Registration to do business in Indiana, similar to what foreign corporations file. The state corporate income tax return is due on the 15th day of the fourth month following the close of the corporation’s tax year. Publicly Traded Partnership (Domestic and Foreign) If fi ling federal Form 1065 or 1065B, fi le: Form IT-65 If fi ling federal Form 1120, fi le: Form IT-20 If a utility service provider, also fi le: Form URT-1 If a financial institution (80 percent income test), fi le: The state tax return(s) is due on the 15th day of the fourth month following the close of the entity’s tax year. State Return(s) to File Form FIT-20 A publicly traded partnership (PTP) that is treated as a partnership and not as a corporation for federal income tax purposes must fi le on Form IT-65. A PTP that is treated as a corporation for federal income tax purposes under IRC Section 7704 must fi le on Form IT-20. 8 American LegalNet, Inc. www.FormsWorkFlow.com A PTP based outside of Indiana must fi le a Certificate of Authority to do business in Indiana. This is similar to what foreign corporations file. Regulated Investment Company (IRC Section 851) State Return(s) to File If fi ling federal Form 1120-RIC, fi le: Form IT-20 The tax return(s) is due on the 15th day of the fourth month following the close of the entity’s tax year. If a financial institution (80 percent income test), fi le: Form FIT-20 Real Estate Investment Trust (IRC section 856) A regulated financial corporation, subsidiary of a holding company, or regulated financial corporation can elect to be treated as a regulated investment company (RIC). It does this by fi ling Form 1120-RIC. For state purposes, the RIC must use Form IT-20 or FIT-20 to report federal taxable income, deductions, gains, and losses from the operation of an RIC in Indiana. State Return(s) to File If fi ling federal Form 1120-REIT, fi le: Form IT-20 If a financial institution (80 percent income test), fi le: Form FIT-20 A corporation, a trust, or an association that meets certain conditions under IRC Section 856 can elect to be treated as a real estate investment trust (REIT) for the tax year. It does this by figuring its taxable income as a REIT on federal Form 1120-REIT. An entity fi ling as a REIT files Form IT-20 or FIT-20 to report business activity income in Indiana. The state return is due on the 15th day of the fourth month following the close of the corporation’s tax year. S Corporation (IRC Section 1361) State Return(s) to File If fi ling federal Form 1120S, fi le: If a utility service provider, also fi le: However, the deduction for dividends paid is not an allowable exclusion for the state return. A deduction for dividends included in federal taxable income is an addback on the state tax return. State Return(s) to File If fi ling federal Form 1066, fi le: Form IT-20 If a financial institution (80 percent income test), fi le: Form URT-1 A corporation incorporated in the United States can elect S corporation treatment. The corporation must submit IRS Form 2553 to the IRS for recognition of its status. This is a separate legal and taxable entity. It can have no more than 100 owners. An S corporation is exempt from federal income tax except on certain capital gains and passive income. Any income taxed at the corporate level is subject to the Indiana corporate AGIT. The state tax return is due on the 15th day of the fourth month following the close of the tax year. Real Estate Mortgage Investment Conduit (IRC Section 860D) Form IT-20S Form FIT-20 A corporation that has permission to fi le as an S corporation must fi le its Indiana return on the Indiana S Corporation Income Tax Return, Form IT-20S. A corporation, a partnership, a trust, or an entity that meets certain conditions under IRC Section 860D can elect to be treated as a real estate investment conduit (REMIC) for the tax year. It does this by figuring its taxable income as an REMIC on federal Form 1066. An entity fi ling as a REIT files either Form IT-20 or Form FIT-20 to report its total federal taxable income, deductions, gains, and losses from the operation of an REMIC in Indiana. In addition, the REMIC must report and pay taxes on any net income from foreclosure property and contributions after a startup day. If this applies to you, check box J-6 in the taxpayer identification section on the front of the return. The state tax return(s) is due on the 15th day of the fourth month following the close of the corporation’s tax year. Settlement Fund (IRC Section 468B) State Return(s) to File If fi ling federal Form 1120-SF, fi le: Form IT-20 If a financial institution (80 percent income test), fi le: Form FIT-20 The state tax return is due on the 15th day of the fourth month following the close of the fund’s tax year. The state tax return is due on the 15th day of the fifth month following the close of the entity’s tax year. The entity’s final state return is due 30 days from the filing due date of Form 1066 following the date the REMIC ceased to exist. Nonprofit Corporations (Domestic and Foreign) A corporation can be formed for profit or nonprofit purposes. A nonprofit organization is an association whose purpose is to engage in activities that do not provide financial profit to the benefit of its members. Such corporations must get nonprofit or tax exempt status from the IRS and the Indiana Department of Revenue to be free from certain tax burdens. 9 American LegalNet, Inc. www.FormsWorkFlow.com Formation of Nonprofit Corporation Nonprofit entities can be organized formally or informally. Forming a corporation creates a specific legal entity. A nonprofit organization incorporated in this state (a domestic corporation) must have on fi le Articles of Incorporation 4162 with the Corporations Division of the Indiana Secretary of State. An organization incorporated in another state or with a foreign government must have on file an Application for Certificate of Authority 37035 with the Secretary of State. This allows a foreign (outside Indiana) corporation to do business in Indiana. The tax return on unrelated business income (Form IT-20NP) and the annual report (Form NP-20) are due on the 15th day of the fifth month following the close of the organization’s tax year. The URT-1 tax return is due on the 15th day of the fourth month following the close of the organization’s tax year. Religious or Apostolic Organization (Exempt Under Section 501(d)) State Return(s) to File If fi ling federal Form 1065, fi le: Form IT-65 Application for Nonprofit Status and Registration Contact the Internal Revenue Service for federal requirements to obtain nonprofit (commonly known as 501(c)(3)) status. The IRS publishes an information booklet titled Tax Exempt Status for Your Organization, Publication 557. Contact: Internal Revenue Service: (800) 829-1040 Publications: (800) 829-3676 www.irs.ustreas.gov/ The state partnership return is due on the 15th day of the fourth month following the close of the organization’s tax year. Other Related Income Tax Filing Requirements of a Corporation To register your nonprofit status with the state, you must submit a Nonprofit Organization Application for Sales Tax Exemption (NP-20A). Contact: Indiana Department of Revenue Tax Administration P.O. Box 7206 Indianapolis, IN 46207-7206 (317) 233-4015 After nonprofit status is granted, the organization must file the annual report (NP-20) to maintain state recognition of its sales tax exemption. If the organization has unrelated business income over $1,000 during the tax year, it must also file Form IT-20NP. For information about nonprofit fi ling requirements, get Information Bulletin #17 at www.in.gov/dor/3650.htm The annual report and income tax return are due on the 15th day of the fifth month following the close of the organization’s tax year. Forms for Specific Nonprofit Organizations Nonprofit Organization State Return(s) to File If fi ling federal Form 990 or 990T, fi le: Form IT-20NP and Form NP-20 If a utility service provider, also fi le: Form URT-1 A nonprofit organization or corporation must fi le Form IT-20NP and/or Form NP-20. The department recognizes the exempt status determined by the IRS. An organization registered as a nonprofit is subject to the AGIT unless the income is specifically exempt from taxation under the Adjusted Gross Income Tax Act (IC 6-3-2-2.8 and 6-3-2-3.1). The nonprofit organization is subject to both federal and state tax on income derived from an unrelated trade or business, as defined in IRS Section 513. State Return(s) to File Forms for Other Corporate Entities Financial Institution Franchise Tax Form FIT-20 Financial institutions are subject to a franchise tax under IC 6-5.5. Indiana imposes a financial institution franchise tax (FIT) of 8.5 percent on the AGI of a taxpayer that is conducting the business of a financial institution in Indiana. Financial institution means:  A holding company registered under the Bank Holding Act of 1956;  A holding company registered as a savings and loan holding company;  A holding company registered as a regulated financial corporation (including a state chartered credit union); or  Any subsidiary of the above. The franchise tax also extends to all other corporate entities when 80 percent or more of their 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 broker or advisor in connection with leasing that is the economic equivalent of an extension of credit; or  Operating a credit card, debit card, or charge card business (see 45 IAC 17-2-4). Taxpayers subject to the FIT under IC 6-5.5-2-1 are exempt from Indiana’s corporate AGIT. Entities subject to this tax should not fi le Form IT-20. Instead, they should fi le Form FIT-20, Indiana Financial Institution Tax Return. For more information, get Commissioner’s Directive #14 at www.in.gov/dor/3617.htm or contact Corporate Taxpayer Assistance by calling (317) 233-4015. The FIT-20 return is due on the 15th day of the fourth month following the close of the corporation’s tax year. 10 American LegalNet, Inc. www.FormsWorkFlow.com Premium (Privilege) Insurance Tax State Form 6135 or State Form 6136 Insurance companies must fi le federal Form 1120-L or 1120-PC. A foreign insurance company (organized under the laws of a state other than Indiana) is required by IC 27-1-18-2 to pay the insurance premium tax to the Indiana Department of Insurance. However, a domestic (Indiana) insurance company can file either the premium insurance tax return or the corporation income tax return. Paying the premium tax exempts the insurance company from the AGIT. The state insurance return is filed with the Indiana Department of Insurance. It is due on March 1 following the close of the tax year ending Dec. 31. Adjusted Gross Income Tax The Indiana AGIT is generally calculated using federal taxable income from federal Form 1120 or a comparable return and making Indiana modifications as required by IC 6-3-1-3.5(b). If you have income from sources both within and outside Indiana, use the apportionment and allocation formula on IT-20 Schedule E to determine the AGI that’s attributed to Indiana. The AGIT rate is 8.5 percent. Due Dates The corporation’s tax return is due by the 15th day of the fourth month following the close of the tax year. Due to the observance of Emancipation Day, returns filed on April 18, 2011 will be considered timely filed for the April 15 deadline. Utility Receipts Tax Form URT-1 Per IC 6-2.3-2-1, gross receipts from the retail sale of utility services are taxed at 1.4 percent. The utility services subject to tax include:  Electrical energy;  Natural gas;  Water;  Steam;  Sewage; and  Telecommunications. A farmer’s cooperative (described in Section 1381 of the Internal Revenue Code) has until the 15th day of the 10th month following the end of its taxable year to fi le its annual Indiana return. A real estate mortgage investment conduit’s (REMIC’s) return is due by the 15th day of the fift h month following the close of its taxable year. The entity’s final state return is due 30 days from the fi ling due date of Form 1066 following the date the REMIC ceased to exist. Gross receipts are defined as the value received for the retail sale of utility services. 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 us before filing your annual return. Returns postmarked within 30 days after the last date indicated on the federal extension are considered timely fi led. If your corporation does not need a federal extension of time but needs one for fi ling the state return, submit a letter to us requesting such an extension prior to the annual return’s due date. Entities subject to this tax must file Form URT-1 (Utility Receipts Tax Return). They must also fi le the annual corporate AGI or financial institution income tax return. See Commissioner’s Directive #18 at www.in.gov/dor/3617.htm for more information. The URT-1 return is due on the 15th day of the fourth month following the close of the taxpayer’s tax year. Utility Services Use Tax Form USU-103 Your business might be subject to an excise tax of 1.4 percent on the consumption of utility services. A utility services use tax (USUT) is due if the utility receipts tax is not payable by the seller. The person who consumes the utility service in Indiana is liable for the USUT. Unless the utility service seller is registered with the Department to collect the USUT on your behalf, you must pay the tax on Form USU-103. For more information, see Commissioner’s Directive #32 at www.in.gov/dor/3617.htm The USU-103 return is due monthly by the 30th day following the end of each month. General Filing Requirements for Form IT-20 What to Enclose with Your State Corporate Return To complete your state income tax return, you must enclose copies of pages 1 through 4 of the completed U.S. Corporation Income Tax Return (Form 1120) or the comparable federal return you are fi ling. You also must include federal Schedule M-3 and any confirmation of an extension of time to file the return. Extensions for Filing Return To request an Indiana extension of time to file, contact: Indiana Department of Revenue, Data Control Business Tax Returns Processing Center 100 N. Senate Avenue Indianapolis, IN 46204-2253 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. Use Form IT-6 to make an extension payment for your taxable year. This payment is processed as a “fift h” estimated payment. (See Income Tax Bulletin #15 at www.in.gov/dor/3650.htm for more details.) 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 fi led. Interest is computed from the original due date until the date of payment. Each October the Department establishes the interest rate for the next calendar year. See Departmental Notice #22 at www.in.gov/dor/3618.htm for interest rates. 11 American LegalNet, Inc. www.FormsWorkFlow.com If you have a valid extension of time or a federal electronic extension to fi le, you must check box V1 on the front of the return. If applicable, enclose a copy of the federal extension of time with your state return. Unitary (Combined) Filing Status You can petition the Department for permission to file a combined income tax return for a unitary group. You must file the petition on or before 30 days after the end of the tax year for which you’re seeking permission. Accounting Methods and Taxable Year You must use the same method of accounting you used for federal income tax purposes. The taxable year for the AGIT must also be the same as the accounting period you used for federal income tax purposes. If the apportionment provisions do not fairly reflect your Indiana income, you must petition the Department for permission to use an alternative method. For an overview of corporate taxation, see Income Tax Information Bulletin #12 at www.in.gov/dor/3650.htm Consolidated Reporting Under the Adjusted Gross Income Tax Act, affiliated corporations have the privilege of fi ling a consolidated return. This is provided in IRC Section 1502 for those affi liates as defined in IRC Section 1504. The Indiana consolidated return must include any member of the affi liated group under IRC Section 1504 having income or loss attributable to Indiana during the year. To fi le a consolidated return for AGIT purposes, the parent corporation must own at least 80 percent of each subsidiary’s voting stock. Each corporation in the affi liated group electing to fi le consolidated must be either incorporated in Indiana or registered with the Secretary of State to do business in Indiana. The affi liated group may not include any corporation that does not have taxable income or loss from Indiana sources. You can elect to fi le a consolidated return for Indiana purposes by fi ling by the due date or the extended due date. If you choose this, you should notify the Department by completing Schedule 8-D, Schedule of Indiana Affi liated Group Members. Indicate the affi liated corporations included in the consolidated return. You cannot elect to file a consolidated return on a retroactive basis. After an affi liated group elects to file consolidated for Indiana purposes, the group must follow that choice for all subsequent years of filing. In addition, a worksheet must accompany the annual return supporting each of the participating affi liates’ consolidated AGI or loss. Schedule 8-D is available separately from the Department. If the group wants to revoke the election in a subsequent tax year, it must prove good cause and receive written permission from the Department. The group must make its request to discontinue fi ling consolidated at least 90 days before the return’s due date. Permission will be granted if combined reporting will more fairly reflect the unitary group’s Indiana source income. However, combined reporting is limited to the “water’s-edge” of the United States. The petition should be sent to: Indiana Department of Revenue Tax Policy Division 100 N. Senate Avenue, N-280 Indianapolis, IN 46204 Caution: After permission has been granted to fi le on a combined basis, the taxpayer must continue to fi le returns on this basis until the Department grants permission to use an alternative method. The taxpayer filing the combined return must petition the Department within 30 days after the end of the tax year for permission to stop fi ling a combined return. IT-20 Unitary Schedule 1, Combined Profit and Loss Statement of Indiana Unitary Group, must be completed detailing the following:  The federal taxable income;  The intercompany eliminations; and  The members’ adjusted gross income tax. You must enclose with the return a list of the corporations involved in the apportionment factor of the unitary fi ler. Include their federal identification numbers. You must also include the computation of apportionment for the combined group’s members. Each taxable member will be assigned a share of business income according to its relative share (its percentage share without considering any nontaxable member’s share) of the unitary group’s Indiana property, payroll, and (adjusted) sales factors. Get additional information concerning unitary requirements from the Tax Policy Division at (317) 232-7282. See Tax Policy Directive #6 at www.in.gov/dor/3661.htm Treatment of Partnership Income The corporate partner’s and the partnership’s activities might constitute a unitary business under established standards, disregarding ownership requirements. If so, the business income of the unitary business attributable to Indiana is determined by a three-factor apportionment formula. The formula consists of the corporate partner’s property, payroll, and sales. It also includes the corporate partner’s share of the partnership’s factors for any partnership year ending within or with the corporate partner’s income year. The partner’s proportionate shares of all the partnership’s (unapportioned) state income taxes and charitable contributions are added back in to determine its AGI. 12 American LegalNet, Inc. www.FormsWorkFlow.com The corporate partner’s activities and the partnership’s activities might not constitute a unitary business under established standards. If they don’t, the corporate partner’s share of the partnership income attributable to Indiana is determined at the partnership level as follows: 1. If the partnership has income from sources within and outside Indiana, the income from the sources within Indiana is determined by a formula consisting of the property, payroll, and sales of the partnership. 2. If the partnership has income from sources entirely within Indiana or entirely outside Indiana, the income is not subject to formula apportionment. Refer to 45 IAC 3.1-1-153. For non-unitary partners, taxable partnership distributions included in federal AGI are deducted on line 14 of the return. Non-unitary partnership income attributed to Indiana, including any apportioned pro rata modifications, is added back on line 17. Refer to the instructions for Schedule F for more information. Losses are treated the same as income; however, losses cannot exceed the limits imposed by IRC Section 704. The quarterly estimated payment must be equal to the lesser of:  25 percent of the AGI tax liability for the taxable year; or  The annualized income installment calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s liability for AGI tax. Also, if your estimated liability exceeds $5,000 per quarter, you must remit the tax by EFT. If the estimated payment is made by EFT, you are not required to fi le Form IT-6. For questions about EFT payments, call (317) 232-5500. Corporations required to make quarterly estimated payments can use the annualized income installment method. It must be calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s AGI tax liability. If you need to set up an estimated account, contact the Department to remit the initial payment and to request preprinted quarterly estimated IT-6 returns. For more instructions, refer to Income Tax Information Bulletin #11 at www.in.gov/dor/3650.htm Penalty for Underpayment of Estimated Tax Quarterly Estimated Payments A corporation whose estimated AGIT liability exceeds $2,500 for a taxable year must file quarterly estimated tax payments. The quarterly estimated tax payments must be submitted with an appropriate Indiana voucher, with Form IT-6, or by electronic funds transfer (EFT), depending on the amount due. The quarterly due dates for estimated payments are the 20th day of the fourth, sixth, ninth, and twelft h months of the taxpayer’s tax period, regardless of whether filing on a calendar-year, fiscalyear, or short-year basis. Taxpayers should use the reporting taxpayer’s federal identification number. Estimated taxes can be paid at www.in.gov/dor/epay To make an estimated tax payment or view payment history, you need the following information:  Taxpayer name;  Federal tax ID or employer identification number (EIN);  Current street address; and  Last payment amount. Claim credit for all your estimated payments on lines 34 - 36 of Form IT-20. Refunds reflected on the annual corporate return can be applied to the next taxable year’s estimated liability. Do this by entering the amount to be credited on line 47 of the IT-20. To get a refund, you must claim an overpayment of estimated payments on the annual return. After you remit the remainder of a year’s estimated tax, you should not fi le any further estimated returns. All checks remitted to the Department should be accompanied by a return or a complete explanation for the payment. If you have zero liability for a quarter, you do not have to fi le Form IT-6. If you are required to pay estimated tax, you are subject to a 10 percent underpayment penalty if you don’t fi le estimated payments or pay enough. The required estimate should exceed:  The annualized income installment calculated in the manner provided by IRC Section 6655(e) as applied to your liability; or  25 percent of the final tax liability for the prior taxable year. If you meet either of these conditions, no penalty will be assessed for the estimated period. If you underpaid your tax for any quarter, use Schedule IT-2220 to show an exception to the penalty. If you don’t meet any of the exceptions, you must include payment of the computed penalty with your return. The underpayment penalty is the difference between the amount paid for each quarter and 25 percent of your final income tax for the current tax year. See the instructions for completing Schedule IT-2220, Penalty for the Underpayment of Corporate Income Tax. Electronic Funds Transfer Requirements Corporate quarterly estimated tax must be remitted by EFT if the corporation’s AGI tax exceeds an average of $5,000 per quarter (or $20,000 annually). The Department assesses a penalty of either 10 percent of the unpaid tax or the amount of the EFT (whichever is less) on any EFT it cannot obtain payment on. There is no minimum amount of payment. Therefore, the Department encourages any corporate taxpayers not required to remit by EFT to voluntarily participate in our EFT program. Note: Taxpayers remitting by EFT should not fi le quarterly IT-6 coupons. The amounts are reconciled when the annual income tax return is fi led. 13 American LegalNet, Inc. www.FormsWorkFlow.com If the Department notifies a corporation that it must remit by EFT, the corporation has to: 1. Complete and submit the EFT Authorization Agreement (Form EFT-1); and 2. Begin remitting tax payments by EFT by the date/tax period specified by the Department. If the corporation doesn’t comply, a 10 percent penalty is added onto each quarterly payment not paid by EFT. Note: Per Indiana Code, the extension of time to file payment or the final payment due with the annual return does not have to be paid by EFT. Corporations should claim any EFT payment as an extension or estimated payment credit when fi ling their annual income tax returns. Your return should not indicate an amount due if you have paid, or will pay, any remaining balance by EFT. If your corporation meets the requirements to remit by EFT, contact the Department, EFT Section, by calling (317) 232-5500. Indiana Use Tax Under Indiana law, use tax is imposed on the use, storage, and consumption of tangible personal property in Indiana when the property was acquired in a retail transaction and sales tax was not paid at the point of purchase. The Indiana use tax rate is 7 percent. Indiana use tax does not apply to property purchased for resale or exempted by statute. Items subject to Indiana use tax include:  Magazine subscriptions;  Office supplies;  Property used or consumed outside the scope of production; and  Property purchased from out-of-state vendors. A Sale/Use Tax Worksheet is available on page 40 as a supplement to the income tax return (line 24) for reporting any unpaid use tax liability. Amended Returns To amend an Indiana corporation income tax return, you must complete Form IT-20X. Always use Form IT-20X to comply with IC 6-3-4-6, which requires a taxpayer to notify the Department of any changes (federal adjustment, RAR, etc.) made to a federal income tax return within 120 days of such change. Federal waivers should be enclosed, if applicable. To claim a refund of an overpayment, you must fi le the return within three years from the later of either the overpayment date or the return’s due date. For carryback of a net operating loss deduction, Indiana generally follows federal regulations. IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a reduction in tax due to a federal modification. A taxpayer can fi le a claim for refund within six months from the date of modification by the IRS. Therefore, an overpayment due to a change of a federal income tax liability must be claimed within the later of: the three-year period from the due date of the return, the date of payment, or within six months of the taxpayer’s notification by the IRS. If the taxpayer and the Department agree to an extension of the statute of limitations for an assessment, the period for fi ling a claim for refund is also extended. Calculation of Interest on Refund Claims An overpayment of tax accrues interest from the date the refund claim is filed if it is not refunded or credited against a current or future tax liability within:  90 days after the refund claim is fi led;  The date the tax was due; or  The date the tax was paid (whichever is latest). The refund claim includes an amended return that indicates an overpayment of tax. The rate of interest is established by the Commissioner as published in Departmental Notice #22. The rate is updated on or before Nov. 1 to take effect on Jan. 1 for the coming year. An approved overpayment can be refunded or credited to the following tax year. A combination of these two options can also be used. Instructions for Completing Form IT-20 Filing Period and Identification File a 2010 Form IT-20 return for a taxable year ending Dec. 31, 2010; a short tax year beginning in 2010 and ending in 2010; or a fiscal year beginning in 2010 and ending in 2011. For a short or fiscal tax year, at the top of the form fi ll in the beginning month and day and the ending date of your taxable year. The 2010 Form IT-20 can also be used if:  The corporation’s tax year is shorter than 12 months;  The corporation’s tax year begins and ends in 2010; and  The 2010 Form IT-20 is not available at the time the corporation is required to fi le its return. The corporation must show its 2011 tax year on the 2010 Form IT-20 and take into account any state tax law changes that are effective after Dec. 31, 2010. An amended Form IT-20X can be fi led later to correct a previously fi led return because of state and federal tax law changes effective to that tax period. A corrected Form IT-20 must be enclosed. Please use the corporation’s full legal name and present mailing address. For foreign addresses, please note the following:  Be sure to enter the name of the city, town, or village in the box labeled City;  Be sure to enter the name of the state or province in the box labeled State; and  Be sure to enter the postal code and the 2-digit country code in the box labeled ZIP Code. For a name change, check box B1 at the top of the return. With the return, you must enclose copies of Amended Articles of Incorporation or an Amended Certificate of Authority fi led with the Indiana Secretary of State. 14 American LegalNet, Inc. www.FormsWorkFlow.com The federal identification number shown in the box in the return’s upper-right corner must be accurate and be the same as what’s used on the federal corporation income tax return. Consolidated fi lers must use the federal identification number of the corporation designated as the reporting corporation. List the name of the county in Indiana where you have a primary business location. Enter “O.O.S.” in county box D for an address outside Indiana. Enter your principal business activity code, from the North American Industry Classification System (NAICS), in the designated block of the return. Use the six-digit activity code you reported on your federal corporation income tax return. A link to a list of these codes is available through the Department’s Web site at www.in.gov/dor/3742.htm Question J and Other Fill-in Lines All corporations fi ling an Indiana corporation income tax return must complete the top portion of the form, including questions J through V. Check or complete all boxes that apply to your return. J-1. Is this fi ling your initial return for the state of Indiana? J-2. Is this fi ling your final return for the state of Indiana? Check this box only if the corporation is dissolved, is liquidated, or withdrew from the state. Also, you must timely fi le Form BC-100 to close out any sales and withholding accounts. Go to www.in.gov/dor/3731.htm to complete this form online. J-3. Check this box if the corporation is in bankruptcy. J-4. Check this box if you’re filing as a domestic insurance company. A domestic insurance company uses a one-factor apportionment formula to determine taxable income from sources within Indiana. Enclose a separate calculation statement for the apportionment