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2008 Indiana Corporate Adjusted Gross Income Tax Booklet Form. This is a Indiana form and can be use in Department Of Revenue Statewide.
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www.intax.in.gov
SP 259
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Contents
Page
What’s New for 2008?......................................................................................................................................................... 3
.
Legislative Changes to Adjusted Gross Income Tax for 2008........................................................................................ 3
Legislative Changes to Tax Liability Credits for 2008.................................................................................................... 4
.
Other Changes to Adjusted Gross Income Tax Starting in 2008.................................................................................. 4
Administrative Highlights.................................................................................................................................................. 4
Introduction to Corporate Taxation ................................................................................................................................ 4
How do I register?............................................................................................................................................................... 6
Business Entities.................................................................................................................................................................. 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
Specific Instructions for Completing IT-20 Schedule F............................................................................................... 19
Apportionment of Income for Entity with Multistate Activities................................................................................ 20
.
Instructions for IT-20 Schedule E Apportionment of Adjusted Gross Income........................................................ 20
Addition of Allocated and Previously Apportioned Income to Indiana.................................................................... 23
Deduction from Indiana Adjusted Gross Income........................................................................................................ 23
.
Tax Calculation.................................................................................................................................................................. 23
Nonrefundable Tax Liability Credits.............................................................................................................................. 23
Credit for Estimated Tax and Other Payments............................................................................................................. 24
Balance of Tax Due or Overpayment.............................................................................................................................. 25
Certification of Signatures and Authorization Section................................................................................................ 26
Personal Representative Information............................................................................................................................. 26
Paid Preparer Information............................................................................................................................................... 26
Mailing Options................................................................................................................................................................. 26
Schedule M - Alternate Adjusted Gross Income Tax Calculation.............................................................................. 27
Return Pages 1-2
Form IT-20 - Indiana Corporate Adjusted Gross Income Tax
Return Page 3
IT-20 Schedule E - Apportionment of Income for Indiana
Return Page 4
IT-20 Schedule PIC - Disclosure of Intangible Expense and Directly Related Intangible Interest Expense
Schedule H - Additional Explanation or Adjustment of Items Elsewhere on Return
Foreign Source Dividends Deduction Worksheet
IT-20 Schedule CC-20 - College and University Contribution Credit
Return Pages 5-6
IT-20 Schedule F - Allocation of Non-business Income and Indiana Non-unitary Partnership Income
Schedule IT-2220 - Penalty for Underpayment of Corporate Income Tax
Instructions for Schedule IT-2220 for 2008
Sales/Use Tax Worksheet.................................................................................................................................................. 36
Instructions for Schedule IT-20NOL.............................................................................................................................. 37
Schedule IT-20NOL - Corporate Income Tax - Indiana Net Operating Loss Deduction
Other Credits..................................................................................................................................................................... 41
About Other Tax Liability Credits.................................................................................................................................. 42
.
Special Reminders............................................................................................................................................................. 48
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What’s New for 2008?
Legislative Changes to Adjusted Gross
Income Tax for 2008
Qualified Patents Income Exemption
PL 223-2007 SECTIONS 1, 2 and 11 amends IC 6-3-1-3.5 and
adds IC 6-3-2-21.7, effective Jan. 1, 2008. Income from qualified
patents included in federal taxable income is exempt from the
adjusted gross income of corporations and insurance companies
for taxable years beginning after Dec. 31, 2007.
References to the Internal Revenue Code
Public Law (PL) 131-2008, SEC. 12 amended Indiana Code (IC)
6-3-1-11.
The definition of adjusted gross income is updated to correspond
to the federal definition of adjusted gross income contained in
the Internal Revenue Code (IRC).
A qualified patent is a utility patent or a plant patent issued
after Dec. 31, 2007, for an invention resulting from a development process conducted in Indiana. The term does not include a
design patent.
A qualified taxpayer is either a nonprofit organization that is domiciled in Indiana or an individual or a corporation with fewer
than 500 employees that is domiciled in Indiana. The exemption
from income includes licensing fees or other income received
for the use of the patent, royalties received for the infringement,
receipts from the sale of a qualified patent, and income from the
taxpayer’s own use of the patent to produce the claimed invention.
For tax year 2008, any reference to the IRC and subsequent regulations means the Internal Revenue Code of 1986, as amended
and in effect on Jan. 1, 2008.
Second Year Phase-in of Single-Factor Sales
Formula for Apportionment of Income
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. The total value of the
property and payroll factors shall be gradually diminished in
each of the succeeding taxable years until 2011.
The total amount of exemptions claimed by a taxpayer in a taxable year may not exceed $5 million. The exemption may not be
claimed for more than 10 years. For the first 5 years, 50 percent
of the amount of income received from the patent is exempt; the
percentage declines by 10 percent each year starting in the sixth
year that the exemption is claimed (the percentage for both year
9 and year 10 is 10 percent). Get Income Tax Information Bulletin #104 at www.in.gov/dor/3650.htm for more information.
For taxable years beginning in 2008, the numerator of the apportionment formula shall be the sum of the property factor plus
the payroll factor plus the product of the sales factor multiplied
by 4.67 and the denominator shall be 6.67.
For more information, get Income Tax Information Bulletin #12
at www.in.gov/dor/3650.htm
Add Back Dividends from Captive Real Estate
Investment Trust
Changes to Estimated Tax Filing Requirements
PL 211-2007 SECTIONS 19, 20 and 55 amended IC 6-3-1-3.5
and added IC 6-3-1-34.5, effective Jan. 1, 2008. Corporations are
required to add back any deduction for dividends paid to shareholders of a captive real estate investment trust for taxable years
beginning after Dec. 31, 2007.
For taxable years beginning after Dec. 15, 2007, a corporation
is not required to file quarterly estimated payments if its annual
unpaid liability is less than $2,500. The previous limitation was
$1,000.
A captive real estate investment trust is defined as a corporation,
a trust, or an association that:
• Is considered a real estate investment trust under
Section 856 of the Internal Revenue Code;
• Is not regularly traded on an established securities
market; and
• In which more than 50 percent of the voting power,
beneficial interests, or shares is owned or controlled
by a single entity.
PL 211-2007 SECTIONS 24 and 53 amended IC 6-3-4-4.1, effective Dec. 16, 2007, changes a corporation’s filing requirements for
making estimated tax payments.
Corporations required to make quarterly estimated payments
are permitted to use the annualized income installment method
calculated in the manner provided by IRC Section 6655(e) as
applied to the corporation’s adjusted gross income tax liability. If
you use the annualization method, enclose your calculations with
your return for our review.
The term does not include a corporation, a trust, or an association in which more than 50 percent of the entity’s voting power,
beneficial interests, or shares is owned by a single entity that is
owned or controlled, directly or constructively, by:
The threshold for making electronic file transfer (EFT) payments
for corporate estimated taxes is reduced from $10,000 to $5,000.
Go to www.in.gov/dor/3650.htm to get Income Tax Information
Bulletin #11 for more information.
• A corporation, a trust, or an association that is considered
a real estate investment trust under Section 856 of the
Internal Revenue Code;
• A person exempt from taxation under Section 501 of the
Internal Revenue Code; or
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• A real estate investment trust that:
• Is intended to become regularly traded on an
established securities market; and
• Satisfies the requirements of Section 856(a)(5) and
Section 856(a)(6) of the Internal Revenue Code
under Section 856(h) of the Internal Revenue Code.
Please have the following information available:
• Name
• Taxpayer Federal Tax ID or Employer Identification
Number (EIN)
• Current street address
• Last payment amount
Legislative Changes to Tax Liability
Credits for 2008
View by clicking on Begin using IN e-pay at:
www.in.gov/dor/epay/3727.htm
If you have any questions, please call the Department
at (317) 233-4017.
Other Changes to Adjusted Gross Income Tax
Starting in 2008
For a complete summary of new legislation regarding taxation, please see the 2008 Summary of State Legislation Affecting
the Department of Revenue at www.in.gov/dor/3656.htm
Voluntary Compliance Program
If you discover that you have an unmet filing requirement with
Indiana and want to know more about the Department’s Voluntary Disclosure Program, contact us at:
Ethanol Production Tax Credit to Include Credit
for Cellulosic Ethanol
PL 175-2007 SECTION 3 and 23 amended IC 6-3.1-28-11, effective for tax years beginning after Dec. 31, 2007.
It allows an additional ethanol production tax credit to taxpayers who produce at least 20 million gallons of cellulosic ethanol
in a taxable year. The credit may be applied only against the state
tax liability attributable to business activity taking place at the
Indiana facility at which the cellulosic ethanol was produced.
Get Income Tax Information Bulletin #93 for more information
(www.in.gov/dor/3650.htm).
Indiana Department of Revenue
IGCN Room 203 - VCP Office
100 N. Senate Ave.
Indianapolis, IN 46204
Revised Forms for 2008
•
•
The application for Ethanol Credit Certification is through the
Indiana Economic Development Corporation, One North
Capitol, Suite 700, Indianapolis, IN 46204, or visit their Web site
at: www.in.gov/iedc/ for additional information.
Form IT-20 Schedule E, Schedule E-7 and EZ Schedule
1, 2, 3 are revised to continue the phase-in of the singlefactor apportionment.
The Other Credits section for nonrefundable tax liability
credits is reorganized with a specific identifying three-digit
code for each credit.
Introduction to Corporate Taxation
Indiana has three kinds of corporate income tax:
Administrative Highlights
•
•
In accordance with the Indiana Taxpayer Bill of Rights, the
Department will conduct an annual public hearing on Tuesday,
June 2, 2009. Please come and share your ideas on how the
Department of Revenue can better administer Indiana tax laws.
The hearing will be held from 9 to 10 a.m. in the Indiana
Government Center South, Conference Center - Room 32,
402 W. Washington St., Indianapolis, IN. If you can’t attend,
please submit your concerns in writing to: Indiana
Department of Revenue, Commissioner’s Office, 100 N. Senate
Ave., Indianapolis, IN 46204.
View Estimated Payments Online and Make
Payments by ePay
Indiana imposes a franchise tax on income of an entity
transacting the business of a financial institution in this
state. Taxpayers subject to the financial institution tax
are exempt from the adjusted gross income tax.
•
Annual Public Hearing
A corporation doing business in Indiana is subject to the
adjusted gross income tax. Any corporation deriving
income from Indiana sources is subject to the adjusted
gross 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.
Indiana recognizes a variety of business organizations. How the
business is organized determines the type of tax return(s) it must
file. It is important you know the tax-related requirements before
setting up operations in Indiana.
Corporate taxpayers may verify their state estimated tax payments and balances online. This feature saves time, helps to avoid
delayed refunds, and identifies estimated discrepancies prior to
filing. Visit www.in.gov/dor/epay/ to access your estimated tax
information.
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General Filing Requirements
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.
All types of corporations, business corporations, professional
corporations, C corporations, and S corporations have essentially the same filing requirements. They may have different tax
responsibilities, but they are still corporations. Any corporation
doing business and having gross income in Indiana is required
to file a corporation income tax return. It must file an income
tax return regardless of whether it has taxable income, unless it’s
exempt under IRC section 501.
Deriving Income from Indiana Sources
If a corporation has business income from both within and outside Indiana, the entity, other than a financial institution or domestic insurance company, must apportion its income by means
of the three-factor formula under IC 6-3-2-2. Business income
is all income that arises from the conduct of trade or business
operations of the taxpayer. The nonbusiness income of a corporation is specifically allocated under IC 6-3-2-2(g) through (k).
Nonprofit entities can be organized formally or informally.
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:
Starting a New Business Indiana
Formal business organizations require some filing with the Secretary of State, Corporations Division. It is strongly suggested that
individuals consult an attorney before forming a formal business
entity.
Internal Revenue Service: (800) 829-1040
Publications: (800) 829-3676
www.irs.gov/
After a business entity has formed or been granted authority to
do business in the state of 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 filings 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
100 N. Senate Ave.
Indianapolis, IN 46204-2253
(317) 232-2045
All organizational filings and reports for formal business entities
should be sent to:
Taxable Period
Doing Business in Indiana
Information Line and Front Desk Hours:
8:00 a.m. to 5:30 p.m., Monday through Friday (except state
holidays)
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 adjusted gross
income tax.
For Indiana adjusted gross income 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, warehouse, construction site
or other place of business in Indiana.
2. Maintenance of an inventory of merchandise or
material for sale, distribution or manufacture.
3. The 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. The rendering of a service to customers in Indiana.
5. The 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.
8. Maintenance of a public utility.
Indiana Secretary of State, Business Services Division
302 W. Washington St., Room E018
Indianapolis, IN 46204
(317)-232-6576
www.in.gov/sos/business/corporations.html
Need more detailed information pertaining to 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 may need to
register with the Indiana Department of Revenue (IDOR). Registration is required if you will have employees and intend to engage
in selling (retail or wholesale) and/or renting/leasing tangible
personal property, etc.
Companies registering for Indiana Withholding Tax must provide
their Federal Employer Identification Number (EIN). 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 at which you are doing business.
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Register Multiple Locations:
A company providing a service but that has no employees may
not need to register. If you are unsure, please contact the Department at (317) 233-4015 for additional information.
You must complete a separate BT-1 for each location you need to
register. If you want to consolidate tax filings for all or some of
your locations, you can complete Form BT-1C (Authorization for
Consolidated Sales Tax Filing Number) within the BT-1 Packet.
Sales Tax Exemption Certificates
Registered retail merchants must assess Indiana sales tax on the
sale of tangible personal property unless the customer presents
the merchant with 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 tax
exempt number of the customer.
Important Reminders:
• To avoid delays in processing applications, please make
sure all the applicable information is complete and the
form is signed.
• Please note that 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 file
returns.
The business registered as a retail merchant may 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.
Business Entities (in General)
Which Indiana Income Tax Form(s) to File?
The type of form to file varies depending on how the corporation
is organized and what type of income it earns. An organization
filing a federal return and doing business in this state must also
file the comparable Indiana return. The name of the corporation
(which must include “Corporation,” “Company,” “Incorporated,”
“Limited,” or an abbreviation thereof) must be included on all
the returns. When filing your Indiana corporate forms, use your
Federal Employer Identification Number (EIN) to identify your
return. The IRS assigns this number to business entities who
register for a federal identification number (EIN).
How do I register?
A single application (Form BT-1) is used to register with the
Department for alcohol & tobacco tax, sales tax, withholding tax,
food & beverage tax, county innkeeper’s tax, motor vehicle rental
excise tax, and prepaid sales tax on gasoline. A separate application is required for each business location.
Internet:
If you need to register your business with the Department, you
can register online using the Department’s Online BT-1 Application. Visit https://secure.in.gov/apps/dor/bt1
For Indiana tax purposes, a corporation tax filing includes other
less formal organizations and unincorporated entities such as
general partnerships and nonprofit associations. To find which
return to file, use the following list that describes your organization. File the specified state form(s) to report the income, gains,
losses, deductions, and credits and to figure your entity’s corporate income tax liability.
INtax:
Use Indiana’s free online business tax filing program to directly
manage your sales and withholding tax accounts. Once your
business is registered, you can use INtax to complete the registration process. With INtax, you can file 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.
The state returns are due 30 days after the due date for the filing
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.
Paper:
A corporation or entity doing business in Indiana is subject to
the corporate adjusted gross income tax (AGIT). The corporate
AGIT rate of tax 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.
You can complete the Form BT-1 application online and then
print and sign your registration.
Mail the completed application to:
Indiana Department of Revenue
Systems Services
P.O. Box 6197
Indianapolis, IN 46206-6197
If you elect to mail Form BT-1, please allow approximately 4-6
weeks to complete the registration process. Request Form BT-1
to receive a blank application through the mail.
Types of Corporate Entities & 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 file Articles of Incorporation 4159 with the Corporations
Division of the Secretary of State.
In Person:
Visit our Taxpayer Service Center in the Indiana Government
Complex or at any of the IDOR District Offices. Simply bring
your completed BT-1 application for same-day service.
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An organization incorporated in another state or 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
Filing federal Form 1120, file:
If meeting 80 percent income test as a
financial institution:
If a utility service provider, also file:
State Return(s) to File
Form IT-20, or
Corporation
(engaged in farming)
Filing federal Form 1120, file:
If a utility service provider, also file:
State Return(s)
to File
Form IT-20
Form URT-1
A corporation that engages in farming and is reporting its income and deductions on federal Form 1120 or 1120-A must file
Form IT-20.
Form FIT-20;
Form URT-1
The state tax return(s) is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
Bank holding companies, regulated financial corporations, and
subsidiaries of these entities (as defined in IC 6-5.5-1-17) are
subject to the financial institutions tax (FIT). In addition, 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 IC 6-5.5-1-17(d) and 45 IAC 17-2-4. You can also get
Commissioner’s Directive #14 at www.in.gov/dor/3617.htm for
more information.
Domestic Corporation
State Return(s) to File
Form IT-20
Form URT-1;
Filing federal Form 1120, file:
If a utility service provider, also file:
If a financial institution
(80 percent income test), file:
Form FIT-20
The FIT rate of tax is the same as the AGIT rate of 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.
An organization incorporated in this state is known as a domestic corporation for tax purposes. It is required to file an Indiana
return to report taxable income if it is not otherwise exempt.
Utility Service Provider: Are you in the business as a utility
service? If so, you may also 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.
The state tax return(s) is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
Exempt Organizations:
(Refer to the section on Nonprofit Corporations)
You will owe this tax if you furnish any electrical energy, natural
gas, water, steam, sewage, or telecommunications services. The
URT is due on the retail sale of these services in Indiana. The
URT rate of tax is 1.4 percent. Refer to Commissioner’s Directive
#18 for more information. Entities subject to this tax must also
file Form URT-1.
Forms for Specific Organizations
Foreign Corporation
Filing federal Form 1120, file:
If a utility service provider, also file:
If a financial institution
(80 percent income test), file:
State Return(s) to File
Form IT-20
Form URT-1;
Form FIT-20
State Return(s) to File
Form IT-20
Form URT-1
An organization incorporated in another state or foreign government is known as a foreign corporation for Indiana tax purposes.
It must have a Certificate of Authority to do business in Indiana.
An Application for a Certificate of Authority is available from the
Indiana Secretary of State or State Information Center.
A cooperative association (including a subchapter T cooperative)
that engages in farming and is reporting its income and deductions on federal Form 1120-C must file Form IT-20. If this applies to you, check box J-5 in the taxpayer identification section
on the front of the return.
A foreign corporation with authority to operate in Indiana (other
than a life and property and casualty insurance company) generally must file its Indiana tax return on the Corporation Income
Tax Return, Form IT-20.
Cooperative Association
Filing federal Form 1120-C, file:
If a utility service provider, also file:
The state tax return(s) is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
If the cooperative is in the business of providing a utility service,
it must also file 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.
Foreign Sales Corporation
(IRC section 922)
Filing federal Form 1120-FSC, file:
If a utility service provider, also 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 taxable year. The utility receipts return, Form URT-1,
is due on the 15th day of the fourth month following the close of the
association’s tax year.
State Return(s) to
to File
Form IT-20
Form URT-1
A foreign corporation with authority to operate in Indiana generally must file its Indiana tax return on the Corporation Income
Tax Return, Form IT-20.
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The state tax return(s) is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
Homeowner’s Association
(IRC section 831)
Filing federal Form 1120-H, file:
Organization 49459. An LLC based outside of Indiana must file
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
file Form IT-20 or Form FIT-20, as appropriate.
State Return(s)
to File
Form IT-20
The state tax return(s) is due on the 15th day of the fourth month
following the close of the entity’s tax year.
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 file as a for-profit corporation using Form IT-20.
Limited Liability Partnership
(Domestic and Foreign)
Filing federal Form 1065 or 1065B, file:
Interstate Charge Domestic
International Sales Corporation
(IRC section 922)
Filing federal Form 1120-FSC, file:
If a utility service provider, also file:
State Return(s)
to File
Form IT-20
Form URT-1
An LLP can be formed under state law by filing Articles of Registration of a Limited Liability Partnership with the Secretary of
State. An LLP based outside of Indiana must file a Certificate of
Authority or Notice of Foreign Limited Liability Partnership to
do business in Indiana, similar to what foreign corporations file.
State Return(s)
to File
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 file on
Form IT-20. It will be exempt from the insurance premium tax
if it elects to pay the adjusted gross income tax. If this applies to
you, check box J-4 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 entity’s tax year.
Limited Partnership
(Domestic and Foreign)
Filing federal Form 1065 or 1065B, file:
State Return(s)
to File
Form IT-65
Form IT-20
Form URT-1
Form FIT-20
Filing federal Form 1065 or 1065B, file:
Filing federal Form1120, file:
If a utility service provider, also file:
If a financial institution, file:
State Return(s)
to File
Form IT-65
Filing federal Form1120, file:
If a utility service provider, also file:
If a financial institution, 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.
Limited Liability Companies
(Domestic and Foreign)
Form IT-20
Form URT-1
Form FIT-20
A Limited Liability Partnership (LLP) 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 Treas. Reg. 301.7701-3. The income of an LLP
is taxed in the same manner as a general partnership is.
The state tax return is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
Life Insurance Company (Domestic)
(IRC section 922)
Filing federal Form 1120-H, file:
Form IT-65
Filing federal Form1120, file:
If a utility service provider, also file:
If a financial institution, file:
The state tax return 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 IT-20
Form URT-1
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. 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 Treas. Reg. 301.7701-3.
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 Treas. Reg. 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 and files Form 1065.
A single-member LLC can elect to report its income and deductions as a corporate entity instead. The LLC can file a Form 1120
or Form 1120-A only if it has filed federal Form 8832, Entity
Classification Election, to be treated as a corporation.
An LLC may be formed under state law by filing Articles of
The LP may be formed under state law by filing a Certificate of
Limited Partnership with the Secretary of State. An LP based outside of Indiana must file a Certificate of Authority or Application
of Registration to do business in Indiana, similar to what foreign
corporations file.
The state tax return(s) is due on the 15th day of the fourth month
following the close of the entity’s tax year.
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Nuclear Decommissioning Funds
(IRC section 468A)
Filing federal Form 1120-ND, file:
If a financial institution, file:
State Return(s)
to File
Form IT-20
Form FIT-20
The state tax return is due on the 15th day of the fourth month
following the close of the fund’s taxable year.
Personal Service Corporation
(Domestic and Foreign)
Filing federal Form 1120, file:
Real Estate Investment Trust
(IRC section 856)
Filing federal Form 1120-REIT, file:
If a financial institution, file:
State Return(s)
to File
Form IT-20
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 by figuring its taxable
income as a REIT on federal Form 1120-REIT. An entity filing
as a REIT files Form IT-20 or FIT-20 to report business activity
income in Indiana.
State Return(s)
to File
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.
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 add back on the state tax return
effective for tax years beginning in 2008.
Political Organization
(IRC section 527)
Filing federal Form 1120-POL, file:
The state tax return is due on the 15th day of the fourth month
following the close of the tax year.
State Return(s)
to File
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.
Property and Casualty
Insurance Company (Domestic)
(IRC section 831)
Filing federal Form 1120-PC, file:
State Return(s)
to File
Form IT-20
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 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.
State Return(s)
to File
Form IT-65
Filing federal Form1120, file:
If a utility service provider, also file:
If a financial institution, file:
State Return(s)
to File
Form IT-20
Form FIT-20
A corporation, partnership, trust, or entity that meets certain
conditions under IRC section 860D may elect to be treated as
a real estate mortgage investment conduit (REMIC) for the tax
year by figuring its taxable income as a REMIC on federal Form
1066. An entity filing as a real estate investment trust (REIT)
files either Form IT-20 or FIT-20 to report total federal taxable
income, deductions, gains, and losses from the operation of a
REMIC Indiana. In addition, the REMIC must report and pay
the taxes on 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.
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 file on Form IT20. It is exempt from the insurance premium tax if it elects to pay the
adjusted gross income tax. If this applies to you, check box J-4 in the
taxpayer identification section on the front of the return.
Publicly Traded Partnership
(Domestic and Foreign)
Filing federal Form 1065 or 1065B, file:
Real Estate Mortgage Investment
Conduit (IRC section 806D)
Filing federal Form 1066, file:
If a financial institution, file:
Form IT-20
Form URT-1
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 file
on Form IT-65. A PTP that is treated as a corporation for federal income tax purposes under IRC section 7704 must file on Form IT-20.
Regulated Investment
Company (IRC section 851)
Filing federal Form 1120-RIC, file:
If a financial institution, file:
State Return(s)
to File
Form IT-20
Form FIT-20
A regulated financial corporation, subsidiary of a holding company, or regulated financial corporation can elect to be treated as
a regulated investment company (RIC) by filing 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 a RIC in Indiana.
A PTP based utside of Indiana must file a Certificate of Authority
to do business in Indiana, similar to what foreign corporations file.
The state return is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
The tax return(s) is due on the 15th day of the fourth month
following the close of the entity’s tax year.
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S Corporation
(IRC section 1361)
Filing federal Form 1120S, file:
If a utility service provider, file:
To register your nonprofit status with the state, you must submit
a Nonprofit Organization Application for Sales Tax Exemption
(NP-20A). Contact:
State Return(s)
to File
Form IT-20S
Form URT-1
A corporation incorporated in the U.S. may 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 and 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.
After nonprofit status is granted, the organization files 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 with
the Department. For information about nonprofit filing requirements, obtain Income Tax Information Bulletin #17.
A corporation that has permission to file as an S corporation
return must file its Indiana return on the Indiana S Corporation
Income Tax Return, Form IT-20S.
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.
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)
Filing federal Form 1020-SF, file:
If a financial institution, file:
Forms for Specific Nonprofit Organizations
State Return(s)
to File
Form IT-20
Form FIT-20
Nonprofit Organization
Filing federal Form 990 or 990T, file:
If a utility service provider, also file:
The state tax return is due on the 15th day of the fourth month
following the close of the fund’s tax year.
State Return(s) to File
Form IT-20NP and
Form NP-20
Form URT-1
A nonprofit organization or corporation must file Form IT-20NP
and/or Form NP-20. The Department recognizes the exempt
status determined by the IRS. A nonprofit organization registered
as a nonprofit registration is subject to the adjusted gross income
tax, unless the income is specifically exempt from taxation under
the provisions of the Adjusted Gross Income Tax Act (IC 6-3-22.8 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.
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 obtain nonprofit or tax
exempt status from the IRS and Indiana Department of Revenue
to be free from certain tax burdens.
The tax return on unrelated business income (Form IT-20NP) and
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.
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 file Articles of Incorporation 4162 with the Corporations
Division of the Indiana Secretary of State. An organization incorporated in another state or 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.
Religious or Apolstolic Organization
(Exempt Under Section 501(d))
Filing federal Form 1065, file:
State Return(s)
to File
Form IT-65
The state partnership return is due on the 15th day of the fourth
month following the close of the organization’s tax year.
Application for Nonprofit Status and Registration
Other Related Income Tax Filing
Requirements of a Corporation
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:
Indiana Department of Revenue
Tax Administration
100 N. Senate Ave.
Indianapolis, IN 46204-2253
(317) 232-2045
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 adjusted gross income of a taxpayer that is
carrying on the business of a financial institution within
Internal Revenue Service: (800) 829-1040
Publications: (800) 829-3676
www.irs.ustreas.gov/
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Indiana. “Financial institution” means a holding company
registered under the Bank Holding Act of 1956 or registered as a
savings and loan holding company; a regulated financial corporation, including a state chartered credit union; and any subsidiary
of the above.
seller. The person who consumes the utility service in Indiana is
liable for the USUT. Unless the seller of the utility service is registered with the Department to collect the USUT on your
behalf, you must pay the tax on Form USU-103. For more
information, refer to Commissioner’s Directive #32, available at
www.in.gov/dor/3617.htm
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.
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 comparable federal return
you are filing. You must include federal Schedule M-3 and any
confirmation of an extension of time to file the return.
Taxpayers subject to the FIT under IC 6-5.5-2-1 are exempt from
Indiana’s corporate adjusted gross income tax. Entities subject to
this tax should not file Form IT-20; instead, they should file Form
FIT-20, Indiana Financial Institution Tax Return. For information, obtain Commissioner’s Directive #14 or contact Corporate
Taxpayer Assistance by calling (317) 233-4015.
Adjusted Gross Income Tax
The Indiana adjusted gross income tax 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 income is derived from sources both within and
outside Indiana, the adjusted gross income attributed to Indiana
is determined by the use of an apportionment and allocation
formula detailed on IT-20 Schedule E. The adjusted gross income
tax rate is 8.5 percent.
The FIT-20 return is due on the 15th day of the fourth month
following the close of the corporation’s tax year.
Premium (Privilege) Insurance Tax
State Form 6135, or State Form 6136
Insurance companies must file 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 may elect to
file the premium insurance tax return or the corporation income
tax return (see life, property, and casualty insurance companies).
Paying the premium tax exempts the insurance company from
the adjusted gross income tax.
Due Dates
The corporation’s tax return is due by the 15th day of the
fourth month following the close of the tax year.
However, 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 file its annual Indiana Adjusted Gross Income Return. And a real estate mortgage
investment conduit’s (REMIC’s) return is due by the 15th day
of the fifth month following the close of its taxable 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.
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.
Utility Receipts Tax
Form URT-1
IC 6-2.3-2-1 imposes a utility receipts tax of 1.4 percent on the
gross receipts from the retail sale of utility services. The utility services subject to tax include electrical energy, natural gas,
water, steam, sewage, and telecommunications. Gross receipts are
defined as the value received for the retail sale of utility services.
Extensions for Filing Return
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
the annual return. Returns postmarked within 30 days after the
last date indicated on the federal extension are considered timely
filed. When a corporation does not need a federal extension of
time but needs one for filing the state return, a letter requesting
such an extension should be submitted to the Department prior
to the due date of the annual return.
Entities subject to this tax must file Form URT-1 (Utility Receipts Tax Return) in addition to the annual corporate adjusted
gross income or financial institution income tax return. Refer to
Commissioner’s Directive #18 at www.in.gov/dor/3617.htm for
further information.
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.
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 may 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
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
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is paid on or prior to the original due date. Form IT-6 should be
used to make an extension payment for your taxable year. This
payment is processed as a “fifth” estimated payment. (See Income
Tax Bulletin #15 for more details.) Any tax paid after the original
due date must include interest.
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. You must make your request to discontinue filing consolidated at least 90 days before the due date of the return.
Unitary (Combined) Filing Status
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. Each October the Department establishes the interest rate for the next calendar year. See
Departmental Notice #22 for interest rates.
A taxpayer can petition the Department for permission to file a
combined income tax return for a unitary group. You must file
the petition with the Department on or before 30 days after the
end of the tax year for which permission is sought.
If you have a valid extension of time or a federal electronic extension to file, you must check box V1,on the front of the return. If
applicable, enclose a copy of the federal extension of time to the
return when filing your state return.
Permission will be granted if combined reporting will more fairly
reflect the unitary group’s Indiana source income. The petition
should be sent to: Indiana Department of Revenue, Tax Policy
Division, 100 N. Senate Ave., N-280, Indianapolis, IN 46204.
Accounting Methods and Taxable Year
Caution: After permission has been granted to file on a combined basis, a taxpayer must continue to file returns on this
basis until permission is granted by the Department for use of
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 discontinue the filing of a combined
return.
The Department requires that you use the same method of accounting that you used for federal income tax purposes. The
taxable year for the adjusted gross income tax must be the same
as the accounting period adopted for federal income tax purposes. If the apportionment provisions do not fairly reflect your
corporation’s Indiana income, you must petition the Department
for permission to use an alternative method.
IT-20 Unitary Schedule 1, Combined Profit and Loss Statement of Indiana Unitary Group, must be completed detailing
the federal taxable income, inter-company eliminations, and adjusted gross income tax of the members. You must attach to the
return a list of the corporations involved in the apportionment
factor of the unitary filer, including their federal identification
numbers. The computation of apportionment for members of
the combined group must be included. 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.
For an overview of corporate taxation, refer to Income Tax Information Bulletin #12.
Consolidated Reporting
Under the Adjusted Gross Income Tax Act, affiliated corporations have the privilege of filing a consolidated return as provided
in IRC Section 1502 for those affiliates as defined in IRC Section
1504. The Indiana consolidated return must include any member
of the affiliated group under IRC Section 1504 having income or
loss attributable to Indiana during the year.
To file a consolidated return for adjusted gross income tax purposes, the parent corporation must own at least 80 percent of the
voting stock of each subsidiary. Each corporation in the affiliated
group electing to file consolidated must either be incorporated in
Indiana or be registered with the Secretary of State to do business
in Indiana. The affiliated group may not include any corporation
that does not have taxable income or loss derived from Indiana
sources.
Additional information concerning unitary requirements can be
obtained from the Tax Policy Division, (317) 232-7282. Refer to
Tax Policy Directive #6 at www.in.gov/dor/3661.htm
Treatment of Partnership Income
If the corporate partner’s and the partnership’s activities constitute a unitary business under established standards (disregarding
ownership requirements), the business income of the unitary
business attributable to Indiana is determined by a three-factor
apportionment formula. The formula consists of the property,
payroll, and sales of the corporate partner and its share of the
partnership’s factors for any partnership year ending within or
with the corporate partner’s income year. The partner’s proportionate share of all of the partnership’s (un-apportioned) state
income taxes and charitable contributions are added back in,
determining adjusted gross income.
An election to file a consolidated return for Indiana purposes
can be made by filing the consolidated return by the due date
or extended due date. If such an election is made, you should
notify the Department by completing Schedule 8-D, Schedule
of Indiana Affiliated Group Members, indicating the affiliated
corporations included in the consolidated return. An election to
file a consolidated return cannot be made on a retroactive basis.
After an affiliated group elects to file consolidated for Indiana
purposes, the group must follow that election for all subsequent
years of filing. In addition, a worksheet must accompany the annual return supporting the consolidated adjusted gross income or
loss of each of the participating affiliates. Schedule 8-D is available separately from the Department.
If the corporate partner’s activities and the partnership’s activities
do not constitute a unitary business under established standards,
the corporate partner’s share of the partnership income attributable to Indiana shall be determined at the partnership level as follows: (1) If the partnership derives income from sources within
and outside Indiana, the income derived from sources within
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Indiana is determined by a three-factor formula consisting of the
property, payroll, and sales of the partnership; (2) If the partnership derives income from sources entirely within Indiana, or
entirely outside Indiana, such 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
adjusted gross income are deducted on line 13 of the return.
Non-unitary partnership income attributed to Indiana, including
any apportioned pro rata modifications, is added back on line 17.
Questions relating to EFT payments should be directed to
(317) 232-5500.
Corporations required to make quarterly estimated payments
are permitted to use the annualized income installment method
calculated in the manner provided by IRC Section 6655(e) as applied to the corporation’s adjusted gross income tax liability.
If you need to establish 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.
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.
Penalty for Underpayment of Estimated Tax
Quarterly Estimated Payments
Corporations required to pay estimated tax are subject to a 10
percent underpayment penalty if they fail to file estimated tax
payments or fail to remit a sufficient amount. The required estimate should exceed the annualized income installment calculated
in the manner provided by IRC Section 6655(e) as applied to
the corporation’s liability (effective Dec. 16, 2007), or 25 percent
of the final tax liability for the prior taxable year. If either one
of these conditions is met, no penalty will be assessed for the
estimated period.
A corporation whose estimated adjusted gross income tax liability exceeds $2,500 for a taxable year must file quarterly
estimated tax payments. The previous threshold in effect was
$1,000 through Dec. 15, 2007. The quarterly estimated tax payments are submitted with an appropriate Indiana voucher, Form
IT-6, or by electronic funds transfer (EFT), depending on the
amount of the payment due. The quarterly due dates for estimated income tax payments for calendar year corporate taxpayers
are April 20, June 22, Sept. 21, and Dec. 21, 2009. Fiscal year and
short tax year corporate filers must remit by the 20th day of the
fourth, sixth, ninth, and twelfth months of their tax period. Use
the federal identification number of the reporting taxpayer.
Use Schedule IT-2220 to show an exception to the penalty if
the corporation underpaid its income tax for any quarter. If an
exception to the penalty is not met, payment of the computed
penalty must be included with the return. 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 25 percent of the corporation’s final income tax liability for
the current tax year. Refer to the instructions for completing
Schedule IT-2220, Penalty for the Underpayment of Corporate
Income Tax.
Estimated taxes may be paid at: www.in.gov/dor/epay
To make an estimated tax installment payment or to view payment history, you need to know the following information:
• Taxpayer name;
• Federal tax ID or employer identification number (EIN);
• Current street address; and
• Last payment amount
Electronic Funds Transfer Requirements
Corporate quarterly estimated tax must be remitted by EFT if the
amount of the corporate adjusted gross income tax imposed on a
corporation 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 the unpaid tax or the amount of the EFT, whichever
is less, will be assessed. Because there is no minimum amount of
payment, the Department encourages all corporate taxpayers not
required to remit by EFT to participate voluntarily in our EFT
program.
Claim credit for all your estimated payments on lines 34 - 36 of
Form IT-20. Taxpayers should note that refunds reflected on the
annual corporate income tax return can be applied to the next
taxable year’s estimated liability by entering the amount to be
credited on the line 47 of the IT-20 return. An overpayment of
estimated payments must be claimed on the annual return to
obtain a refund. After a check is remitted for the remainder of a
year’s estimated income tax liability, no further estimated returns
should be filed with the Department after the date of payment. All
checks remitted to the Department should be accompanied by a
return or a complete explanation for the payment. If you have a
zero liability for a quarter, you do not have to file Form IT-6.
Note: Taxpayers remitting by EFT should not file quarterly IT-6
coupons. The amounts are reconciled when the annual income
tax return is filed.
Effective for 2008, the quarterly estimated payment must be equal
to the lesser of 25 percent of the adjusted gross income 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 adjusted gross income tax.
Also, as of Jan. 1, 2008, if a taxpayer’s estimated liability exceeds
$5,000 per quarter, the taxpayer must remit the tax by electronic
funds transfer (EFT). If the estimated payment is made by EFT,
the taxpayer is not required to file Form IT-6.
If the Department notifies a corporation of its requirement to
remit by EFT, the corporation must do the following:
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.
Failure to comply will result in a 10 percent penalty on each
quarterly estimated income tax liability not sent by EFT.
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Note: The Indiana Code does not require the extension of time
to file payment or final payment due with the annual return to
be paid by EFT. You should be sure to claim any EFT payment
as an extension or estimated payment credit when filing your
annual income tax return.
from the date the refund claim is filed. 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 appr
