Ind. Code ch. 6-3-4

Ind. Code ch. 6-3-4
in effect

Ind. Code § 6-3-4-1 Who must make returns

Sec. 1. Returns with respect to taxes imposed by this act shall be made by the following: (1) Every resident individual having for the taxable year gross income in an amount greater than the modifications provided under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4). (2) Every nonresident individual having for the taxable year any gross income from sources within the state of Indiana, except for a team member (as defined in IC 6-3-2-2.7) who is covered by a composite return filed under IC 6-3-2-2.7. (3) Every corporation having for the taxable year any gross income from sources within the state of Indiana. (4) For taxable years beginning after December 31, 2012, every resident estate having for the taxable year any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)(3) of the Internal Revenue Code. (5) For taxable years beginning after December 31, 2012, every resident trust having for the taxable year any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)(4) of the Internal Revenue Code. (6) For taxable years beginning after December 31, 2012, every nonresident estate having for the taxable year any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)(3) of the Internal Revenue Code. (7) For taxable years beginning after December 31, 2012, every nonresident trust having for the taxable year any gross income from sources within the state of Indiana exceeding the amount provided in Section 6012(a)(4) of the Internal Revenue Code. Formerly: Acts 1963(ss), c.32, s.401; Acts 1965, c.233, s.16. As amended by Acts 1981, P.L.25, SEC.7; P.L.63-1997, SEC.3; P.L.137-2012, SEC.54.

Ind. Code § 6-3-4-1.5 Returns filed by professional preparers

Sec. 1.5. (a) If a professional preparer files more than: (1) one hundred (100) returns in a calendar year before 2012; (2) fifty (50) returns in calendar year 2012; and (3) ten (10) returns in a calendar year after 2012; for persons described in section 1(1) or 1(2) of this chapter, in the immediately following calendar year the professional preparer shall file returns for persons described in section 1(1) or 1(2) of this chapter in an electronic format specified by the department. (b) A professional preparer described in subsection (a) is not required to file a return in an electronic format if the taxpayer requests in writing that the return not be filed in an electronic format. Returns filed by a professional preparer under this subsection shall not be used in determining the professional preparer's requirement to file returns in an electronic format. (c) A professional preparer who does not comply with subsection (a) is subject to a penalty of fifty dollars ($50) for each return not filed in an electronic format, with a maximum penalty of twenty-five thousand dollars ($25,000) per calendar year. As added by P.L.211-2007, SEC.23. Amended by P.L.131-2008, SEC.14; P.L.229-2011, SEC.86.

Ind. Code § 6-3-4-2 Returns; fiduciaries; husband and wife

Sec. 2. (a) If an individual is deceased, the return of such individual shall be made by the individual's executor, administrator, or other person charged with the property of such decedent. (b) If an individual is unable to make a return, the return of such individual shall be made by a duly authorized agent, the individual's committee, guardian, fiduciary, or other person charged with the care of the person or property of such individual. (c) Returns of an estate or a trust shall be made by the fiduciary thereof. (d) Where a joint return is made by husband and wife pursuant to the Internal Revenue Code, a joint return shall be made pursuant to this article. Where a joint return is filed by a husband and wife hereunder, one spouse shall have no liability for the tax imposed by this article upon the income of the other spouse. (e) Where separate returns are made by husband and wife pursuant to the Internal Revenue Code, separate returns shall be made pursuant to this article. Formerly: Acts 1963(ss), c.32, s.402; Acts 1965, c.233, s.17. As amended by Acts 1977(ss), P.L.4, SEC.9; P.L.3-1989, SEC.39.

Ind. Code § 6-3-4-3 Filing date

Sec. 3. (a) Returns required to be made pursuant to section 1 of this chapter shall be filed with the department on or before the later of the following: (1) The 15th day of the fourth month following the close of the taxable year. (2) For a corporation whose federal tax return is due on or after the date set forth in subdivision (1), as determined without regard to any extensions, Saturdays, Sundays, or holidays recognized by the Internal Revenue Service, the 15th day of the fifth month following the close of the taxable year. (b) If the due date for a federal income tax return is extended by the Internal Revenue Service to a date that is later than the date specified in subsection (a)(1) or (a)(2) (as applicable), the department may extend the due date of a return required to be made under section 1 of this chapter to reflect the due date permitted for the federal income tax return. (c) If the due date for a federal income tax return in the Internal Revenue Code, as determined without regard to any extensions, Saturdays, Sundays, or holidays recognized by the Internal Revenue Service, is later than the date provided in subsection (a), the due date for the return made pursuant to section 1 of this chapter shall be the later of the due date for the federal income tax return or the due date provided under this section. Formerly: Acts 1963(ss), c.32, s.403. As amended by Acts 1980, P.L.61, SEC.4; P.L.172-2011, SEC.58; P.L.212-2018(ss), SEC.23; P.L.137-2022, SEC.37.

Ind. Code § 6-3-4-4 Repealed

Formerly: Acts 1963(ss), c.32, s.404; Acts 1965, c.233, s.18; Acts 1969, c.326, s.5; Acts 1973, P.L.49, SEC.6. As amended by Acts 1977(ss), P.L.4, SEC.10; Acts 1980, P.L.61, SEC.5; Acts 1981, P.L.77, SEC.13; P.L.82-1983, SEC.8; P.L.92-1987, SEC.3; P.L.63-1988, SEC.7; P.L.1-1991, SEC.52; P.L.8-1996, SEC.4. Repealed by P.L.260-1997(ss), SEC.95.

Ind. Code § 6-3-4-4.1 Estimated payments by individual taxpayers; declaration of estimated tax

Sec. 4.1. (a) Any individual required by the Internal Revenue Code or this section to file estimated tax returns and to make payments on account of such estimated tax shall file estimated tax returns and make payments of the tax imposed by this article to the department at the time or times and in the installments as provided by Section 6654 of the Internal Revenue Code. However, the following apply to estimated tax returns filed and payments made under this subsection: (1) In applying Section 6654 of the Internal Revenue Code for the purposes of this article, "estimated tax" means the amount which the individual estimates as the sum of the amount of the adjusted gross income tax imposed by this article for the taxable year and the sum of the amount of local income tax under IC 6-3.6, including any amounts of credits required to be recaptured under IC 6-3-3 and IC 6-3.1, minus the amount which the individual estimates as the sum of any credits against the tax provided by IC 6-3-3, IC 6-3.1, and IC 6-3.6, other than the amounts of tax withheld under this chapter. (2) Estimated tax for a nonresident alien (as defined in Section 7701 of the Internal Revenue Code) must be computed by applying not more than one (1) exclusion under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4), regardless of the total number of exclusions that IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply on the taxpayer's final return for the taxable year. (3) If an individual does not file a return for the preceding taxable year and the individual can establish that the individual did not have a liability under IC 6-3 and IC 6-3.6, Section 6654 of the Internal Revenue Code shall be applied as if the tax liability for the preceding taxable year under IC 6-3 and IC 6-3.6 was zero dollars ($0). (b) Every individual who has adjusted gross income subject to the tax imposed by this article and from which tax is not withheld under the requirements of this chapter or for which tax is not remitted on behalf of the individual under IC 6-3-2.1 shall make a declaration of estimated tax for the taxable year. However, no such declaration shall be required if the estimated tax can reasonably be expected to be less than one thousand dollars ($1,000). In the case of an underpayment of the estimated tax as provided in Section 6654 of the Internal Revenue Code, there shall be added to the tax a penalty at the rate prescribed by IC 6-8.1-10-2.1(b). (c) An individual filing an estimated tax return and making an estimated tax payment under this section must designate: (1) the portion of the estimated tax payment that represents estimated state adjusted gross income tax liability; and (2) the portion of the estimated tax payment that represents estimated local income tax liability under IC 6-3.6. The department shall adopt guidelines and issue instructions as necessary to assist individuals in making the designations required by this subsection. As added by P.L.278-1993(ss), SEC.23. Amended by P.L.18-1994, SEC.9; P.L.19-1994, SEC.8; P.L.85-1995, SEC.10; P.L.8-1996, SEC.5; P.L.260-1997(ss), SEC.51; P.L.28-1997, SEC.14; P.L.2-1998, SEC.32; P.L.192-2002(ss), SEC.80; P.L.1-2003, SEC.36; P.L.269-2003, SEC.9; P.L.211-2007, SEC.24; P.L.131-2008, SEC.15; P.L.146-2008, SEC.319; P.L.1-2009, SEC.50; P.L.197-2016, SEC.24; P.L.159-2021, SEC.12; P.L.205-2025, SEC.10; P.L.128-2026, SEC.17.

Ind. Code § 6-3-4-4.2 Estimated payments by corporate taxpayers; report and payment of estimated tax; electronic funds transfer

Sec. 4.2. (a) The following apply for purposes of this section: (1) "Final tax liability" for a taxable year means the reported tax liability of a taxpayer, except that: (A) for purposes of determining the final tax liability for a previous taxable year of less than twelve (12) months, the final tax liability shall be: (i) the reported adjusted gross income tax liability; divided by (ii) the number of estimated payments otherwise required under this chapter; multiplied by (iii) four (4); (B) if the taxpayer does not have a reported tax liability for the previous year and properly does not file an adjusted gross income tax return under IC 6-3 or financial institutions tax under IC 6-5.5, the taxpayer's final tax liability shall be considered to be zero dollars ($0); and (C) if the taxpayer has a reported tax liability of zero dollars ($0) for the previous taxable year, the taxpayer shall be treated as having a tax liability of zero dollars ($0). (2) "Reported tax liability" means the adjusted gross income tax under IC 6-3 or financial institutions tax under IC 6-5.5 as reported by the taxpayer for the taxable year on the taxpayer's return after application of any credits allowable to the taxpayer under IC 6-3-3, IC 6-3.1, or IC 6-5.5 other than credits for: (A) estimated taxes paid under this section or IC 6-5.5-6-3; (B) taxes withheld on behalf of the taxpayer under this chapter or IC 6-5.5-2-8; or (C) taxes paid by a pass through entity on behalf of the taxpayer under IC 6-3-2.1. The term reported tax liability includes the recapture of any tax credits under IC 6-3-3 or IC 6-3.1 reported on the tax return for the taxable year. If the taxpayer fails to file a tax return for a taxable year under IC 6-3 or IC 6-5.5, and the department determines that the taxpayer owes adjusted gross income tax under IC 6-3 or financial institutions tax under IC 6-5.5, the reported tax liability shall be the greater of the amount for the taxable year under IC 6-3 or IC 6-5.5 as determined by the department or the amount for the immediately following taxable year under IC 6-3 or IC 6-5.5. (b) Except as otherwise provided in this section, every corporation subject to the adjusted gross income tax liability imposed by this article shall be required to report and pay an estimated tax equal to twenty-five percent (25%) of such corporation's estimated adjusted gross income tax liability for the taxable year. The following apply: (1) A taxpayer who uses a taxable year that ends on December 31 shall file the taxpayer's estimated adjusted gross income tax returns and pay the tax to the department on or before April 20, June 20, September 20, and December 20 of the taxable year. (2) If a taxpayer uses a taxable year that does not end on December 31, the due dates for filing estimated adjusted gross income tax returns and paying the tax are on or before the twentieth day of the fourth, sixth, ninth, and twelfth months of the taxpayer's taxable year. The department shall prescribe the manner and forms for such reporting and payment. (3) Any taxes withheld on behalf of the corporation under this chapter or IC 6-5.5-2-8, and any taxes remitted on behalf of the corporation under IC 6-3-2.1, shall be treated as estimated tax payments on behalf of the corporation for purposes of this section. Such taxes shall be attributed to each required payment in the manner the underlying income is attributed under Section 6655 of the Internal Revenue Code. (4) If the taxpayer has a taxable year that is less than twelve (12) months, the estimated payments under this section shall be adjusted in the manner prescribed by Section 6655 of the Internal Revenue Code and applicable regulations. (c) If a corporation determines that its estimated tax payment using an annualized method under Section 6655(e) of the Internal Revenue Code is lower than the amount required under subsection (b), the corporation shall be permitted to use an annualized method under Section 6655(e) of the Internal Revenue Code to determine its estimated tax payment under subsection (b), and shall recapture any reduction in the estimated tax payment in the manner prescribed by Section 6655(e) of the Internal Revenue Code. The corporation may not use an annualized method under this section that would not be allowable to the corporation under Section 6655 of the Internal Revenue Code. (d) The penalty at the rate prescribed by IC 6-8.1-10-2.1(b) shall be assessed by the department on corporations failing to make payments as required in subsection (b). However, no penalty shall be assessed as to any estimated payments of adjusted gross income tax which equal or exceed: (1) the amount calculated under subsection (b); or (2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year. In addition, the penalty as to any underpayment of tax on an estimated return shall only be assessed on the difference between the actual amount paid by the corporation on such estimated return and the amount determined under subsection (b). (e) The provisions of subsection (b) requiring the reporting and estimated payment of adjusted gross income tax shall be applicable only to corporations having an adjusted gross income tax liability which exceeds two thousand five hundred dollars ($2,500) for its taxable year. (f) If the department determines that a corporation's: (1) estimated quarterly adjusted gross income tax liability for the current year; or (2) average estimated quarterly adjusted gross income tax liability for the preceding year; exceeds five thousand dollars ($5,000), the corporation shall pay the estimated adjusted gross income taxes due by electronic funds transfer (as defined in IC 4-8.1-2-7) or by delivering in person or overnight by courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due. A failure to make a payment in the manner prescribed under this subsection shall be subject to penalty as provided in IC 6-8.1-10-2.1(b)(5). (g) In the case of corporations that switch filing status, the final tax liability shall be determined in the manner consistent with Section 1502 of the Internal Revenue Code and regulations thereunder. As added by P.L.205-2025, SEC.11. Amended by P.L.128-2026, SEC.18.

Ind. Code § 6-3-4-5 Payment of tax

Sec. 5. When a return of tax is required pursuant to sections 1 and 3 of this chapter, the taxpayer required to make such return shall, without assessment or notice and demand from the department, pay such tax to the department at the time fixed for filing the return without regard to any extension of time for filing the return. In making a return and paying tax for any taxable year, a taxpayer shall take credit for any tax previously paid by him for such taxable year. Formerly: Acts 1963(ss), c.32, s.405. As amended by P.L.2-1988, SEC.11.

Ind. Code § 6-3-4-6 Furnishing federal return to department; notice of modification; amended returns

Sec. 6. (a) Any taxpayer, upon request by the department, shall furnish to the department a true and correct copy of any tax return which the taxpayer has filed with the United States Internal Revenue Service which copy shall be certified to by the taxpayer under penalties of perjury. (b) Each taxpayer shall notify the department of any modification as provided in subsection (c) of: (1) a federal income tax return filed by the taxpayer after January 1, 1978; or (2) the taxpayer's federal income tax liability for a taxable year which begins after December 31, 1977. The taxpayer shall file the notice in the form and manner prescribed by the department within one hundred twenty (120) days after the modification is made if the modification was made before January 1, 2011, one hundred eighty (180) days after the modification is made if the modification is made after December 31, 2010, but before January 1, 2026, and one (1) year after the modification is made if the modification is made after December 31, 2025. (c) For purposes of subsection (b), a modification occurs on the date on which a: (1) taxpayer files an amended federal income tax return; (2) final determination is made concerning an assessment of deficiency; (3) final determination is made concerning a claim for a refund; (4) taxpayer waives the restrictions on assessment and collection of all, or any part, of an underpayment of federal income tax by signing a federal Form 870, or any other Form prescribed by the Internal Revenue Service for that purpose. For purposes of this subdivision: (A) a final determination does not occur with respect to any part of the underpayment that is not covered by the waiver; and (B) if the signature of an authorized representative of the Internal Revenue Service is required to execute a waiver, the date of the final determination is the date of signing by the authorized representative of the Internal Revenue Service or by the taxpayer, whichever is later; (5) taxpayer enters into a closing agreement with the Internal Revenue Service concerning the taxpayer's tax liability under Section 7121 of the Internal Revenue Code that is a final determination. The date the taxpayer enters into a closing agreement under this subdivision is the date the closing agreement is signed by an authorized representative of the Internal Revenue Service or by the taxpayer, whichever is later; or (6) modification or alteration in an amount of tax, adjusted gross income, taxable income, credit, or other tax attribute is otherwise made that is a final determination; for a taxable year, regardless of whether a modification results in an underpayment or overpayment of tax. In the case of a taxpayer that files a consolidated return under section 14 of this chapter or either files or is required to be included by the department in a combined return under IC 6-3-2-2, the date on which the alteration or modification is made shall be considered to be the last day on which an alteration or modification occurs for any entity filing as part of the consolidated or combined return. (d) For purposes of subsection (c)(2) through (c)(6), a final determination means an action or decision by a taxpayer, the Internal Revenue Service (including the Appeals Division), the United States Tax Court, or any other United States federal court concerning any disputed tax issue that: (1) is final and conclusive; and (2) cannot be reopened or appealed by a taxpayer or the Internal Revenue Service as a matter of law. (e) If the federal modification results in a change in the taxpayer's federal or Indiana adjusted gross income, the taxpayer shall file an Indiana amended return within one hundred twenty (120) days after the modification is made if the modification was made before January 1, 2011, one hundred eighty (180) days after the modification is made if the modification is made after December 31, 2010, but before January 1, 2026, and one (1) year after the modification is made if the modification is made after December 31, 2025. Formerly: Acts 1963(ss), c.32, s.406; Acts 1965, c.233, s.19. As amended by Acts 1977(ss), P.L.4, SEC.11; P.L.119-1998, SEC.5; P.L.254-2003, SEC.6; P.L.172-2011, SEC.59; P.L.242-2015, SEC.16; P.L.159-2021, SEC.13; P.L.128-2026, SEC.19.

Ind. Code § 6-3-4-7 Repealed

Formerly: Acts 1963(ss), c.32, s.407. Repealed by Acts 1980, P.L.61, SEC.15.

Ind. Code § 6-3-4-8 Income withholding; wages; reports; penalties

Sec. 8. (a) Except as provided in IC 6-3-2-27.5 and subsection (d), every employer making payments of wages subject to tax under this article, regardless of the place where such payment is made, who is required under the provisions of the Internal Revenue Code to withhold, collect, and pay over income tax on wages paid by such employer to such employee, shall, at the time of payment of such wages, deduct and retain therefrom the amount prescribed in withholding instructions issued by the department. The department shall base its withholding instructions on the adjusted gross income tax rate for persons, on the total local income tax rate that the taxpayer is subject to under IC 6-3.6, and on the total amount of exclusions the taxpayer is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4). However, the withholding instructions on the adjusted gross income of a nonresident alien (as defined in Section 7701 of the Internal Revenue Code) are to be based on applying not more than one (1) withholding exclusion, regardless of the total number of exclusions that IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply on the taxpayer's final return for the taxable year. Such employer making payments of any wages: (1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and withheld under this section and shall not be liable to any individual for the amount deducted from the individual's wages and paid over in compliance or intended compliance with this section; and (2) shall make return of and payment to the department monthly of the amount of tax which under this article and IC 6-3.6 the employer is required to withhold. (b) An employer shall pay taxes withheld under subsection (a) during a particular month to the department no later than thirty (30) days after the end of that month. However, in place of monthly reporting periods, the department may permit an employer to report and pay the tax for a calendar year reporting period, if the average monthly amount of all tax required to be withheld by the employer in the previous calendar year does not exceed one thousand dollars ($1,000). An employer using a reporting period (other than a monthly reporting period) must file the employer's return and pay the tax for a reporting period no later than the last day of the month immediately following the close of the reporting period. (c) For purposes of determining whether an employee is subject to taxation under IC 6-3.6, an employer is entitled to rely on the statement of an employee as to the employee's county of residence as represented by the statement of address in forms claiming exemptions for purposes of withholding, regardless of when the employee supplied the forms. Every employee shall notify the employee's employer within five (5) days after any change in the employee's county of residence. (d) A county that makes payments of wages subject to tax under this article: (1) to a precinct election officer (as defined in IC 3-5-2.1-82); and (2) for the performance of the duties of the precinct election officer imposed by IC 3 that are performed on election day; is not required, at the time of payment of the wages, to deduct and retain from the wages the amount prescribed in withholding instructions issued by the department. (e) Every employer shall, at the time of each payment made by the employer to the department, deliver to the department a return upon the form prescribed by the department showing, with regard to wages paid to the employer's employees: (1) the amount of adjusted gross income tax deducted therefrom in accordance with the provisions of this section; (2) the amount of income tax, if any, imposed under IC 6-3.6 and deducted therefrom in accordance with this section; and (3) any other information the department may require. Every employer making a declaration of withholding as provided in this section shall furnish the employer's employees annually, but not later than thirty (30) days after the end of the calendar year, a record of the total amount of adjusted gross income tax and the amount of each income tax, if any, imposed under IC 6-3.6, withheld from the employees, on the forms prescribed by the department. In addition, the employer shall file Form WH-3 annual withholding tax reports with the department not later than thirty-one (31) days after the end of the calendar year. (f) All money deducted and withheld by an employer shall immediately upon such deduction be the money of the state, and every employer who deducts and retains any amount of money under the provisions of this article shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in this article. Any employer may be required to post a surety bond in the sum the department determines to be appropriate to protect the state with respect to money withheld pursuant to this section. (g) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to employers subject to the provisions of this section, and for these purposes any amount deducted or required to be deducted and remitted to the department under this section shall be considered to be the tax of the employer, and with respect to such amount the employer shall be considered the taxpayer. In the case of a corporate or partnership employer, every officer, employee, or member of such employer, who, as such officer, employee, or member is under a duty to deduct and remit such taxes, shall be personally liable for such taxes, penalties, and interest. (h) Amounts deducted from wages of an employee during any calendar year in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such employee for the employee's taxable year which begins in such calendar year, and a return made by the employer under subsection (b) shall be accepted by the department as evidence in favor of the employee of the amount so deducted from the employee's wages. Where the total amount so deducted exceeds the amount of tax on the employee as computed under this article and IC 6-3.6, the department shall, after examining the return or returns filed by the employee in accordance with this article and IC 6-3.6, refund the amount of the excess deduction. However, under rules promulgated by the department, the excess or any part thereof may be applied to any taxes or other claim due from the taxpayer to the state of Indiana or any subdivision thereof. In the event that the excess tax deducted is less than one dollar ($1), no refund shall be made. (i) This section shall in no way relieve any taxpayer from the taxpayer's obligation of filing a return or returns at the time required under this article and IC 6-3.6, and, should the amount withheld under the provisions of this section be insufficient to pay the total tax of such taxpayer, such unpaid tax shall be paid at the time prescribed by section 5 of this chapter. (j) Notwithstanding subsection (b), an employer of a domestic service employee that enters into an agreement with the domestic service employee to withhold federal income tax under Section 3402 of the Internal Revenue Code may withhold Indiana income tax on the domestic service employee's wages on the employer's Indiana individual income tax return in the same manner as allowed by Section 3510 of the Internal Revenue Code. (k) To the extent allowed by Section 1137 of the Social Security Act, an employer of a domestic service employee may report and remit state unemployment insurance contributions on the employee's wages on the employer's Indiana individual income tax return in the same manner as allowed by Section 3510 of the Internal Revenue Code. (l) A person who knowingly fails to remit trust fund money as set forth in this section commits a Level 6 felony. Formerly: Acts 1963(ss), c.32, s.408; Acts 1965, c.233, s.20; Acts 1969, c.326, s.6; Acts 1971, P.L.65, SEC.1; Acts 1973, P.L.50, SEC.3. As amended by Acts 1979, P.L.68, SEC.3; Acts 1980, P.L.61, SEC.6; Acts 1982, P.L.49, SEC.2; P.L.2-1982(ss), SEC.9; P.L.26-1985, SEC.10; P.L.70-1986, SEC.2; P.L.94-1995, SEC.1; P.L.8-1996, SEC.6; P.L.192-2002(ss), SEC.81; P.L.131-2008, SEC.16; P.L.172-2011, SEC.60; P.L.137-2012, SEC.55; P.L.293-2013(ts), SEC.12; P.L.158-2013, SEC.86; P.L.242-2015, SEC.17; P.L.197-2016, SEC.25; P.L.159-2021, SEC.14; P.L.194-2023, SEC.20; P.L.186-2025, SEC.67.

Ind. Code § 6-3-4-8.1 Monthly return and remittance; periodic deposit and informational return; online tax filing; notice to employers

Sec. 8.1. (a) Any entity that is required to file a monthly return and make a monthly remittance of taxes under sections 8, 12, 13, and 15 of this chapter shall file those returns and make those remittances twenty (20) days (rather than thirty (30) days) after the end of each month for which those returns and remittances are filed, if that entity's average monthly remittance for the immediately preceding calendar year exceeds one thousand dollars ($1,000). (b) The department may require any entity to make the entity's monthly remittance and file the entity's monthly return twenty (20) days (rather than thirty (30) days) after the end of each month for which a return and payment are made if the department estimates that the entity's average monthly payment for the current calendar year will exceed one thousand dollars ($1,000). (c) If the department determines that a withholding agent is not withholding, reporting, or remitting an amount of tax in accordance with this chapter, the department may require the withholding agent: (1) to make periodic deposits during the reporting period; and (2) to file an informational return with each periodic deposit. (d) An entity that withholds taxes shall file the withholding tax report and remit withholding taxes electronically through the department's online tax filing program. (e) Beginning after June 30, 2021, the department shall provide a notice, by electronic means, to each employer: (1) that is registered in the department's online tax filing program; and (2) whose employer's: (A) Form WH-1 monthly withholding tax report; or (B) withholding tax remittance; is past due. The notice under this subsection shall be made by the department not more than seven (7) days after the date the employer's Form WH-1 monthly withholding tax report or employer's withholding taxes become due. The department may provide the notice under this subsection by advising the employer to check the employer's online portal account for an important message and that the department may not have received the employer's Form WH-1 monthly withholding tax report or employer's withholding tax remittance, or both, if applicable, when due. As added by Acts 1982, P.L.49, SEC.3. Amended by P.L.70-1986, SEC.3; P.L.92-1987, SEC.4; P.L.63-1988, SEC.8; P.L.28-1997, SEC.15; P.L.254-2003, SEC.7; P.L.111-2006, SEC.3; P.L.211-2007, SEC.25; P.L.182-2009(ss), SEC.199; P.L.137-2012, SEC.56; P.L.97-2021, SEC.1; P.L.159-2021, SEC.15.

Ind. Code § 6-3-4-8.2 Income withholding; gambling winnings; inflation adjustment

Sec. 8.2. (a) Each person in Indiana who is required under the Internal Revenue Code to withhold federal tax from winnings shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. (b) In addition to amounts withheld under subsection (a), every person engaged in a gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) and making a payment in the course of the gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) of: (1) winnings (not reduced by the wager) valued at two thousand dollars ($2,000) or more from slot machine play; or (2) winnings (reduced by the wager) valued at two thousand dollars ($2,000) or more from a keno game; shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department's instructions must provide that amounts withheld shall be paid to the department on the twenty-fourth calendar day of each month. Any taxes collected during the month but after the day on which the taxes are required to be paid shall be paid to the department at the same time the following month's taxes are due. Slot machine and keno winnings from a gambling operation (as defined in IC 4-33-2-10) or a gambling game (as defined in IC 4-35-2-5) that are reportable for federal income tax purposes shall be treated as subject to withholding under this section, even if federal tax withholding is not required. (c) The adjusted gross income tax due on prize money or prizes: (1) received from a winning lottery ticket purchased under IC 4-30; and (2) exceeding two thousand dollars ($2,000) in value; shall be deducted and retained at the time and in the amount described in withholding instructions issued by the department, even if federal withholding is not required. (d) In addition to the amounts withheld under subsection (a), a qualified organization (as defined in IC 4-32.3-2-31(a)) that awards a prize under IC 4-32.3 exceeding two thousand dollars ($2,000) in value shall deduct and retain adjusted gross income tax at the time and in the amount described in withholding instructions issued by the department. The department's instructions must provide that amounts withheld shall be paid to the department before the close of the business day following the day the winnings are paid, actually or constructively. (e) For 2027 and later, if the amount for which a payor is required to provide a statement to a recipient under Section 6041 of the Internal Revenue Code is increased to reflect inflation as provided in Section 6041(h) of the Internal Revenue Code, the amounts under subsections (b), (c), and (d) shall be the amount increased to reflect inflation. As added by P.L.28-1997, SEC.16. Amended by P.L.192-2002(ss), SEC.82; P.L.91-2006, SEC.8; P.L.182-2009(ss), SEC.200; P.L.212-2018(ss), SEC.24; P.L.58-2019, SEC.22; P.L.128-2026, SEC.20.

Ind. Code § 6-3-4-8.5 Liability of transferee of property

Sec. 8.5. In the case of a transferee of the property of a transferor, liability for any accrued tax liability of the transferor is transferred to the transferee as provided in section 6901 of the Internal Revenue Code. As added by Acts 1977(ss), P.L.4, SEC.12.

Ind. Code § 6-3-4-9 Reports of payment to recipients

Sec. 9. All individuals, corporations, limited liability companies, partnerships, fiduciaries, or associations, in whatever capacity acting, including but without being limited to, lessees or mortgagors of real or personal property, fiduciaries, and employers making payment to other persons of interest, rent, wages, salaries, premiums, annuities, compensation, remunerations, emoluments, other fixed or determinable means, profits and income, or corporate liquidation distributions shall make returns to the department setting forth the amount of such payments and the name and address of the recipient of such payment at such time or times in such manner, and on such forms as prescribed by the department. Formerly: Acts 1963(ss), c.32, s.409. As amended by P.L.8-1993, SEC.84.

Ind. Code § 6-3-4-10 Partnership returns

Sec. 10. (a) Except as provided in subsection (b), every partnership doing business in this state, every partnership any partner of which is a resident, and every partnership which has gross income derived from sources within this state, shall make a return for each taxable year on a form to be prescribed by the department, which return shall correspond with the returns required by Section 6031 of the Internal Revenue Code, insofar as consistent with the provisions of this article. However, this section shall not be construed to render any partnership a taxpayer under this article. (b) A partnership or a corporation that is exempt from income tax under Section 1363 of the Internal Revenue Code is not required to file: (1) federal income tax Schedule K-1 (Form 1065) Partner's Share of Income, Credits, Deductions, Etc.; or (2) federal income tax Schedule K-1 (Form 1120S) Shareholder's Share of Income, Credits, Deductions, Etc.; with an annual return filed with the department. However, a federal income tax schedule described in this subsection must be available for inspection upon request by the department. Formerly: Acts 1963(ss), c.32, s.410. As amended by P.L.2-1987, SEC.20; P.L.18-1994, SEC.10.

Ind. Code § 6-3-4-11 Partnerships not subject to tax

Sec. 11. (a) A partnership as such shall not be subject to the adjusted gross income tax imposed by IC 6-3-1 through IC 6-3-7, except to the extent the partnership is an electing entity (as defined in IC 6-3-2.1-2) or the partnership has made an election to be taxed at the partnership level under IC 6-3-4.5. Persons or corporations carrying on business as partners shall be liable for the adjusted gross income tax only in their separate or individual capacities. In determining each partner's adjusted gross income, such partner shall take into account his or its distributive share of the adjustments provided for in IC 6-3-1-3.5. (b) The adjustments provided for in IC 6-3-1-3.5 shall be allowed for the taxable year of the partner within or with which the partnership's taxable year ends. Formerly: Acts 1963(ss), c.32, s.411; Acts 1965, c.233, s.21. As amended by Acts 1980, P.L.54, SEC.5; P.L.1-2023, SEC.7.

Ind. Code § 6-3-4-12 Nonresident partners; withholding rate; returns; credits for tax withheld

Sec. 12. (a) Every partnership shall, at the time that the partnership pays or credits amounts to any of its nonresident partners on account of their distributive shares of partnership income, for a taxable year of the partnership, deduct and retain therefrom the amount prescribed in the withholding instructions referred to in section 8 of this chapter. Such partnership so paying or crediting any nonresident partner: (1) shall be liable to the state of Indiana for the payment of the tax required to be deducted and retained under this section and shall not be liable to such partner for the amount deducted from such payment or credit and paid over in compliance or intended compliance with this section; and (2) shall make return of and payment to the department monthly whenever the amount of tax due under IC 6-3 and IC 6-3.6 exceeds an aggregate amount of fifty dollars ($50) per month with such payment due on the thirtieth day of the following month, unless an earlier date is specified by section 8.1 of this chapter. Where the aggregate amount due under IC 6-3 and IC 6-3.6 does not exceed fifty dollars ($50) per month, then such partnership shall make return and payment to the department quarterly, on such dates and in such manner as the department shall prescribe, of the amount of tax which, under IC 6-3 and IC 6-3.6, it is required to withhold. If a partnership credits a partner with pass through entity tax imposed under IC 6-3-2.1, the withholding required for that partner under this section shall be reduced by the tax credited to the partner under IC 6-3-2.1, but in no event shall the tax required to be withheld be reduced to less than zero dollars ($0). (b) Every partnership shall, at the time of each payment made by it to the department pursuant to this section, deliver to the department a return upon such form as shall be prescribed by the department showing the total amounts paid or credited to its nonresident partners, the amount deducted therefrom in accordance with the provisions of this section, and such other information as the department may require. Every partnership making the deduction and retention provided in this section shall furnish to its nonresident partners annually, but not later than the fifteenth day of the third month after the end of its taxable year, a record of the amount of tax deducted and retained from such partners on forms to be prescribed by the department. (c) All money deducted and retained by the partnership, as provided in this section, shall immediately upon such deduction be the money of the state of Indiana and every partnership which deducts and retains any amount of money under the provisions of IC 6-3 shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in IC 6-3. Any partnership may be required to post a surety bond in such sum as the department shall determine to be appropriate to protect the state of Indiana with respect to money deducted and retained pursuant to this section. (d) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to partnerships subject to the provisions of this section, and for these purposes any amount deducted, or required to be deducted and remitted to the department under this section, shall be considered to be the tax of the partnership, and with respect to such amount it shall be considered the taxpayer. (e) Amounts deducted from payments or credits to a nonresident partner during any taxable year of the partnership in accordance with the provisions of this section shall be considered to be in part payment of the tax imposed on such nonresident partner for the nonresident partner's taxable year within or with which the partnership's taxable year ends. A return made by the partnership under subsection (b) shall be accepted by the department as evidence in favor of the nonresident partner of the amount so deducted for the nonresident partner's distributive share. (f) This section shall in no way relieve any nonresident partner from the nonresident partner's obligations of filing a return or returns at the time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid at the time prescribed by section 5 of this chapter. (g) Instead of the reporting periods required under subsection (a), the department may permit a partnership to file one (1) return and payment each year if the partnership pays or credits amounts to its nonresident partners only one (1) time each year. The return and payment are due on or before the fifteenth day of the fourth month after the end of the year. However, if a partnership is permitted an extension to file its income tax return under IC 6-8.1-6-1, the return and payment due under this subsection shall be allowed the same treatment as an extended income tax return with respect to due dates, interest, and penalties under IC 6-8.1-6-1. (h) If a partnership fails to withhold and pay any amount of tax required to be withheld under this section and thereafter the tax is paid by the partners, the amounts of tax as paid by the partners shall not be collected from the partnership but it may not be relieved from liability for interest or penalty otherwise due in respect to the failure to withhold under IC 6-8.1-10. (i) A partnership shall file a composite adjusted gross income tax return on behalf of all nonresident partners. The composite return must include each nonresident partner regardless of whether or not the nonresident partner has other Indiana source income. (j) If a partnership does not include all nonresident partners that have distributive share income from the partnership: (1) as determined under this article; and (2) derived from Indiana sources; of greater than zero dollars ($0) in the composite return, the partnership is subject to the penalty imposed under IC 6-8.1-10-2.1(j). (k) For taxable years beginning after December 31, 2013, the department may not impose a late payment penalty on a partnership for the failure to file a return, pay the full amount of the tax shown on the partnership's return, or pay the deficiency of the withholding taxes due under this section if the partnership pays the department before the fifteenth day of the fourth month after the end of the partnership's taxable year at least: (1) eighty percent (80%) of the withholding tax due for the current year; or (2) one hundred percent (100%) of the withholding tax due for the preceding year. (l) Notwithstanding subsection (a) or (i), a partnership is not required to withhold tax or file a composite adjusted gross income tax return for a nonresident partner if the partnership: (1) is a publicly traded partnership as defined by Section 7704(b) of the Internal Revenue Code; (2) meets the exception for partnerships under Section 7704(c) of the Internal Revenue Code; and (3) has agreed to file an annual information return reporting the name, address, taxpayer identification number, and other information requested by the department of each unit holder. The department may issue written guidance explaining circumstances under which limited partnerships or limited liability companies owned by a publicly traded partnership may be excluded from the withholding requirements of this section. (m) Notwithstanding subsection (k), a partnership is subject to a late payment penalty for the failure to file a return, pay the full amount of the tax shown on the partnership's return, or pay the deficiency of the withholding taxes due under this section for any amounts of withholding tax, including any interest under IC 6-8.1-10-1, reported or paid after the due date of the return, as adjusted by any extension under IC 6-8.1-6-1. (n) For purposes of this section, a "nonresident partner" is: (1) an individual who does not reside in Indiana; (2) a trust that does not reside in Indiana; (3) an estate that does not reside in Indiana; (4) a partnership not domiciled in Indiana; (5) a C corporation not domiciled in Indiana; or (6) an S corporation not domiciled in Indiana. Formerly: Acts 1963(ss), c.32, s.412; Acts 1965, c.233, s.22; Acts 1969, c.326, s.7; Acts 1971, P.L.65, SEC.2; Acts 1973, P.L.50, SEC.4. As amended by Acts 1979, P.L.68, SEC.4; Acts 1982, P.L.49, SEC.4; P.L.2-1982(ss), SEC.10; P.L.23-1986, SEC.3; P.L.211-2007, SEC.26; P.L.137-2012, SEC.57; P.L.293-2013(ts), SEC.13; P.L.242-2015, SEC.18; P.L.181-2016, SEC.27; P.L.197-2016, SEC.26; P.L.85-2017, SEC.22; P.L.137-2022, SEC.38; P.L.1-2023, SEC.8; P.L.48-2026, SEC.2.

Ind. Code § 6-3-4-13 Corporations; withholding from dividends to nonresident shareholders

Sec. 13. (a) Every corporation which is exempt from tax under IC 6-3 pursuant to IC 6-3-2-2.8(2) shall, at the time that it pays or credits amounts to any of its nonresident shareholders as dividends or as their share of the corporation's undistributed taxable income, withhold the amount prescribed by the department. Such corporation so paying or crediting any nonresident shareholder: (1) shall be liable to the state of Indiana for the payment of the tax required to be withheld under this section and shall not be liable to such shareholder for the amount withheld and paid over in compliance or intended compliance with this section; and (2) when the aggregate amount due under IC 6-3 and IC 6-3.6 exceeds one hundred fifty dollars ($150) per quarter, then such corporation shall make return and payment to the department quarterly, on such dates and in such manner as the department shall prescribe, of the amount of tax which, under IC 6-3 and IC 6-3.6, it is required to withhold. If a corporation credits a shareholder with pass through entity tax imposed under IC 6-3-2.1, the withholding required for that shareholder under this section shall be reduced by the tax credited to the shareholder under IC 6-3-2.1, but in no event shall the tax required to be withheld be reduced to less than zero dollars ($0). (b) Every corporation shall, at the time of each payment made by it to the department pursuant to this section, deliver to the department a return upon such form as shall be prescribed by the department showing the total amounts paid or credited to its nonresident shareholders, the amount withheld in accordance with the provisions of this section, and such other information as the department may require. Every corporation withholding as provided in this section shall furnish to its nonresident shareholders annually, but not later than the fifteenth day of the third month after the end of its taxable year, a record of the amount of tax withheld on behalf of such shareholders on forms to be prescribed by the department. (c) All money withheld by a corporation, pursuant to this section, shall immediately upon being withheld be the money of the state of Indiana and every corporation which withholds any amount of money under the provisions of this section shall hold the same in trust for the state of Indiana and for payment thereof to the department in the manner and at the times provided in IC 6-3. Any corporation may be required to post a surety bond in such sum as the department shall determine to be appropriate to protect the state of Indiana with respect to money withheld pursuant to this section. (d) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties shall apply to corporations subject to the provisions of this section, and for these purposes any amount withheld, or required to be withheld and remitted to the department under this section, shall be considered to be the tax of the corporation, and with respect to such amount it shall be considered the taxpayer. (e) Amounts withheld from payments or credits to a nonresident shareholder during any taxable year of the corporation in accordance with the provisions of this section shall be considered to be a part payment of the tax imposed on such nonresident shareholder for the shareholder's taxable year within or with which the corporation's taxable year ends. A return made by the corporation under subsection (b) shall be accepted by the department as evidence in favor of the nonresident shareholder of the amount so withheld from the shareholder's distributive share. (f) This section shall in no way relieve any nonresident shareholder from the shareholder's obligation of filing a return or returns at the time required under IC 6-3 or IC 6-3.6, and any unpaid tax shall be paid at the time prescribed by section 5 of this chapter. (g) Instead of the reporting periods required under subsection (a), the department may permit a corporation to file one (1) return and payment each year if the corporation pays or credits amounts to its nonresident shareholders only one (1) time each year. The withholding return and payment are due on or before the fifteenth day of the fourth month after the end of the taxable year of the corporation. However, if a corporation is permitted an extension to file its income tax return under IC 6-8.1-6-1, the return and payment due under this subsection shall be allowed the same treatment as the extended income tax return with respect to the due dates, interest, and penalties under IC 6-8.1-6-1. (h) If a distribution will be made with property other than money or a gain is realized without the payment of money, the corporation shall not release the property or credit the gain until it has funds sufficient to enable it to pay the tax required to be withheld under this section. If necessary, the corporation shall obtain such funds from the shareholders. (i) If a corporation fails to withhold and pay any amount of tax required to be withheld under this section and thereafter the tax is paid by the shareholders, such amount of tax as paid by the shareholders shall not be collected from the corporation but it shall not be relieved from liability for interest or penalty otherwise due in respect to such failure to withhold under IC 6-8.1-10. (j) A corporation described in subsection (a) shall file a composite adjusted gross income tax return on behalf of all nonresident shareholders. The composite return must include each nonresident shareholder regardless of whether or not the nonresident shareholder has other Indiana source income. (k) If a corporation described in subsection (a) does not include all nonresident shareholders who have distributive share income from the corporation: (1) as determined under this article; and (2) derived from Indiana sources; of greater than zero dollars ($0) in the composite return, the corporation is subject to the penalty imposed under IC 6-8.1-10-2.1(j). (l) For taxable years beginning after December 31, 2013, the department may not impose a late payment penalty on a corporation for the failure to file a return, pay the full amount of the tax shown on the corporation's return, or pay the deficiency of the withholding taxes due under this section if the corporation pays the department before the fifteenth day of the fourth month after the end of the partnership's taxable year at least: (1) eighty percent (80%) of the withholding tax due for the current year; or (2) one hundred percent (100%) of the withholding tax due for the preceding year. (m) Notwithstanding subsection (l), a corporation is subject to a late payment penalty for the failure to file a return, pay the full amount of the tax shown on the corporation's return, or pay the deficiency of the withholding taxes due under this section for any amounts of withholding tax, including any interest under IC 6-8.1-10-1, reported or paid after the due date of the return, as adjusted by any extension under IC 6-8.1-6-1. (n) For purposes of this section, a "nonresident shareholder" is: (1) an individual who does not reside in Indiana; (2) a trust that does not reside in Indiana; or (3) an estate that does not reside in Indiana. Formerly: Acts 1963(ss), c.32, s.413; Acts 1965, c.233, s.23; Acts 1969, c.326, s.8; Acts 1971, P.L.65, SEC.3; Acts 1973, P.L.50, SEC.5. As amended by Acts 1979, P.L.68, SEC.5; Acts 1982, P.L.49, SEC.5; P.L.2-1982(ss), SEC.11; P.L.23-1986, SEC.4; P.L.18-1994, SEC.11; P.L.2-1995, SEC.32; P.L.211-2007, SEC.27; P.L.137-2012, SEC.58; P.L.293-2013(ts), SEC.14; P.L.242-2015, SEC.19; P.L.197-2016, SEC.27; P.L.1-2023, SEC.9; P.L.48-2026, SEC.3.

Ind. Code § 6-3-4-13.5 Income withholding; first payment of prize money; racing event at qualified motorsports facility

Sec. 13.5. (a) The following definitions apply throughout this section: (1) "Initial recipient" means a person or entity to whom prize money is paid by a payor. (2) "Payor" means a promoter, sanctioning body, or designee of the promoter or sanctioning body that first pays prize money to a race team or any other person or entity. The term does not include a subsequent person or entity who pays or distributes any part of the prize money. (3) "Prize money" with respect to a racing event at a qualified motorsports facility means any purse or other amounts earned for placement or participation in a race or part of a race, including qualification. The term does not include amounts earned based on placement or participation in more than one (1) race unless the races are conducted at a qualified motorsports facility. (4) "Qualified motorsports facility" has the meaning set forth in IC 5-1-17.5-14. (5) "Race team" has the meaning set forth in IC 6-3-2-3.2(a). (6) "Ultimate recipient" means the person or entity to whom any tax withheld under this section is to be credited for purposes of this article or IC 6-5.5. The term may apply to an initial recipient. (b) Whenever a payor pays prize money to an initial recipient, the payor shall deduct and retain from the prize money the applicable amount prescribed in the withholding instructions described in section 8 of this chapter. The following provisions apply to a payor and the money required to be deducted and retained by the payor under this section: (1) Money deducted and retained by a payor under this section immediately becomes the money of the state and every payor who deducts and retains money under this section holds the money in trust for the state. (2) The provisions of IC 6-8.1 relating to additions to tax in case of delinquency and penalties apply to a payor under this section. For these purposes, the payor shall be considered the taxpayer and any amount required to be remitted to the department under this section shall be considered to be the tax of the payor. (3) The payor is liable to the state for the payment of the tax required to be deducted and retained under this section. The payor is not liable to any initial recipient or ultimate recipient for the amount deducted from the payment of prize money and paid to the department in compliance, or intended compliance, with this section. (c) A payor shall remit to the department the amount required to be deducted and retained under subsection (b) not later than thirty (30) days after the end of the month in which the prize money is paid. At the time of the remittance, the payor shall provide to the department a list of all initial recipients and the amount withheld on behalf of each initial recipient on forms prescribed by the department. (d) Not later than thirty (30) days after the end of the calendar year for which tax is withheld under this section, an initial recipient shall provide a statement to each ultimate recipient and to the department listing the amounts withheld under subsection (b) on behalf of the ultimate recipients. The statement must be made in the manner prescribed by the department. A statement from the initial recipient to the ultimate recipient is evidence of tax withheld by the payor in favor of the ultimate recipient unless the statement from the initial recipient is determined to be erroneous or fraudulent. (e) This section does not impose a duty to withhold amounts from prize money on an entity other than a payor. However, an initial recipient or ultimate recipient may otherwise have a duty to withhold amounts from prize money under sections 8, 12, 13, or 15 of this chapter. As added by P.L.146-2020, SEC.26.

Ind. Code § 6-3-4-14 Affiliated group of corporations; consolidated returns

Sec. 14. (a) An affiliated group of corporations shall have the privilege of making a consolidated return with respect to the taxes imposed by IC 6-3. The making of a consolidated return shall be upon the condition that all corporations which at any time during the taxable year have been members of the affiliated group consent to all of the provisions of this section including all provisions of the consolidated return regulations prescribed pursuant to Section 1502 of the Internal Revenue Code and incorporated in this section by reference and all regulations promulgated by the department implementing this section prior to the last day prescribed by law for the filing of such return. The making of a consolidated return shall be considered as such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated return shall include the income of such corporation for such part of the year as it is a member of the affiliated group. (b) For the purposes of this section the term "affiliated group" shall mean an "affiliated group" as defined in Section 1504 of the Internal Revenue Code with the exception that the affiliated group shall not include any corporation which does not have adjusted gross income derived from sources within the state of Indiana. (c) For purposes of IC 6-3-1-3.5(b), the determination of "taxable income," as defined in Section 63 of the Internal Revenue Code, of any affiliated group of corporations making a consolidated return and of each corporation in the group, both during and after the period of affiliation, shall be determined pursuant to the regulations prescribed under Section 1502 of the Internal Revenue Code. (d) Any credit against the taxes imposed by IC 6-3 which is available to any corporation which is a member of an affiliated group of corporations making a consolidated return shall be applied against the tax liability of the affiliated group. (e) For purposes of this section, the following rules shall apply: (1) In the case of the sale of a corporation, the filing status of the remaining members of the consolidated group shall continue absent an election by those consolidated members to file separately or on a combined basis. (2) In the case of a merger, the previous filing status of the surviving corporation shall continue. If the surviving corporation is part of an affiliated group that filed a consolidated return in the immediately preceding taxable year, the surviving corporation shall be considered to be part of the consolidated return, provided that the surviving corporation would otherwise be part of the affiliated group under subsection (b). (3) In the case of an acquisition of a corporation, the filing status of the acquiring group shall continue absent an election by the corporations to file separately or on a combined basis. (4) In the case of a corporation that was previously part of a consolidated return but ceased to be part of a consolidated return for any other reason, the election to be part of a consolidated return shall be considered to continue for all corporations. Provided, however, that if a consolidated election is discontinued as a result of sale, merger, acquisition, or any other reason, nothing in this section shall be construed to prevent a new election to file a consolidated return under this section. Formerly: Acts 1963(ss), c.32, s.414; Acts 1965, c.233, s.24. As amended by Acts 1980, P.L.54, SEC.6; P.L.136-2018, SEC.40; P.L.137-2022, SEC.39.

Ind. Code § 6-3-4-15 Trusts or estates; distribution of income to nonresident beneficiaries; deduction, retention, and pay over of tax due; returns required

Sec. 15. (a) A trust or estate shall, at the time that it distributes income (except income attributable to interest or dividends) to a nonresident beneficiary, deduct and retain therefrom the amount prescribed in the withholding instructions referred to in section 8 of this chapter. The trust or estate so distributing income to a nonresident beneficiary: (1) is liable to this state for the tax which it is required to deduct and retain under this section and is not liable to the beneficiary for the amount deducted from the distribution and paid to the department in compliance, or intended compliance, with this section; and (2) shall pay the amount deducted to the department before the thirtieth day of the month following the distribution, unless an earlier date is specified by section 8.1 of this chapter. If a trust or estate credits a beneficiary with pass through entity tax imposed under IC 6-3-2.1, the withholding required for that beneficiary under this section shall be reduced by the tax credited to the beneficiary under IC 6-3-2.1, but in no event shall the tax required to be withheld be reduced to less than zero dollars ($0). (b) A trust or estate shall, at the time that it makes a payment to the department under this section, deliver to the department a return which shows the total amounts distributed to the trust's or estate's nonresident beneficiaries, the amount deducted from the distributions under this section, and any other information required by the department. The trust or estate shall file the return on the form prescribed by the department. A trust or estate which makes the deduction and retention required by this section shall furnish to its nonresident beneficiaries annually, but not later than thirty (30) days after the end of the trust's or estate's taxable year, a record of the amount of tax deducted and retained from the beneficiaries. The trust or estate shall furnish the information on the form prescribed by the department. (c) The money deducted and retained by a trust or estate under this section is money of this state. Every trust or estate which deducts and retains any money under this section shall hold the money in trust for this state until it pays the money to the department in the manner and at the time provided in this section. The department may require a trust or estate to post a surety bond to protect this state with respect to money deducted and retained by the trust or estate under this section. The department shall determine the amount of the surety bond. (d) The provisions of IC 6-8.1 relating to penalties or to additions to tax in case of a delinquency apply to trusts and estates which are subject to this section. For purposes of this subsection, any amount deducted, or required to be deducted and remitted to the department, under this section is considered the tax of the trust or estate, and with respect to that amount, it is considered the taxpayer. (e) Amounts deducted from distributions to nonresident beneficiaries under this section during a taxable year of the trust or estate are considered a partial payment of the tax imposed on the nonresident beneficiary for his taxable year within or with which the trust's or estate's taxable year ends. The department shall accept a return made by the trust or estate under subsection (b) as evidence of the amount of tax deducted from the income distributed to a nonresident beneficiary. (f) This section does not relieve a nonresident beneficiary of his duty to file a return at the time required under IC 6-3. The nonresident beneficiary shall pay any unpaid tax at the time prescribed by section 5 of this chapter. (g) If a trust or estate fails to withhold and pay any amount of tax required to be withheld under this section and thereafter the tax is paid by the beneficiaries, the amount of tax paid by the beneficiaries may not be collected from the trust or estate but it may not be relieved from liability for interest or penalty otherwise due in respect to the failure to withhold under IC 6-8.1-10. (h) A trust or estate shall file a composite adjusted gross income tax return on behalf of all nonresident beneficiaries. The composite return must include each nonresident beneficiary regardless of whether the nonresident beneficiary has other Indiana source income. (i) If a trust or estate does not include all nonresident beneficiaries that have distributable net income from the trust or estate: (1) as determined under this article; and (2) derived from Indiana sources; of greater than zero dollars ($0) in the composite return, the trust or estate is subject to the penalty imposed under IC 6-8.1-10-2.1(j). (j) For purposes of this section, a "nonresident beneficiary" is: (1) an individual who does not reside in Indiana; (2) a trust that does not reside in Indiana; (3) an estate that does not reside in Indiana; (4) a partnership that is not domiciled in Indiana; (5) a C corporation that is not domiciled in Indiana; or (6) an S corporation that is not domiciled in Indiana. (k) If a trust or estate is permitted an extension to file its income tax return under IC 6-8.1-6-1, then the return and payment due under this subsection shall be allowed the same treatment as the extended income tax return with respect to due dates, interest, and penalties under IC 6-8.1-6-1. As added by Acts 1977(ss), P.L.4, SEC.13. Amended by Acts 1979, P.L.68, SEC.6; Acts 1982, P.L.49, SEC.6; P.L.2-1982(ss), SEC.12; P.L.242-2015, SEC.20; P.L.181-2016, SEC.28; P.L.1-2023, SEC.10; P.L.48-2026, SEC.4.

Ind. Code § 6-3-4-15.1 Prescribe procedures

Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13, and IC 6-3-4-15, the department may: (1) prescribe procedures by which a pass through entity remits tax on behalf of partners, shareholders, and beneficiaries who are considered residents for purposes of those sections in the same manner as tax is remitted for partners, shareholders, and beneficiaries who are considered nonresidents for purposes of those sections, provided that such procedures do not relieve filing requirements otherwise applicable to partners, shareholders, and beneficiaries who are considered residents for purposes of those sections; (2) prescribe special procedures for persons or entities that are otherwise subject to withholding under those sections but who may have circumstances such that a standard tax computation may result in excess withholding; (3) prescribe procedures for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year; (4) prescribe procedures by which an entity subject to those sections may request alternative withholding arrangements, provided that such arrangements do not jeopardize the tax otherwise due under IC 6-3 or IC 6-5.5; and (5) prescribe procedures and guidelines by which a partner, shareholder, or beneficiary may elect to not be subject to withholding, in whole or in part, provided that: (A) the election by the partner, shareholder, or beneficiary lists the conditions of the election and that the election is signed under penalty of perjury prior to the due date for the pass through entity to remit tax for the taxable year; (B) the election states that partner, shareholder, or beneficiary has adequate funds to remit any tax due under this article or IC 6-5.5; (C) the election provides any periods for which withholding is not required or is reduced; (D) the election provides that the partner, shareholder, or beneficiary agree to be subject to the jurisdiction of the state of Indiana and shall be liable to file any returns otherwise due under this article or IC 6-5.5, including any composite and withholding returns, and to remit any tax otherwise due, including any interest or penalties due on any tax due; (E) the election provides that the election is subject to department approval and that the department may revoke the election at any time for any reason; and (F) the election is attached to the returns of the pass through entity and of the partner, shareholder, or beneficiary required under this article or IC 6-5.5. A failure by the pass through entity to obtain an election for a taxable year or to attach the election to the pass through entity's return for a taxable year shall be treated as if the election was not made for the taxable year. As added by P.L.159-2021, SEC.16. Amended by P.L.137-2022, SEC.40.

Ind. Code § 6-3-4-15.7 Annuity, pension, retirement, or other deferred compensation plans; withholding requests; payor responsibility; guidelines; designation of local income tax liability

Sec. 15.7. (a) The payor of a periodic or nonperiodic distribution under an annuity, a pension, a retirement, or other deferred compensation plan, as described in Section 3405 of the Internal Revenue Code, that is paid to a resident of this state shall, upon receipt from the payee of a written request for state income tax withholding, withhold the requested amount from each payment. The request must: (1) be dated and signed by the payee; (2) specify the flat whole dollar amount to be withheld from each payment; (3) designate the portion of the withheld amount that represents estimated state adjusted gross income tax liability and the portion of the withheld amount that represents estimated local income tax liability under IC 6-3.6; and (4) specify the payee's name, current address, taxpayer identification number, and the contract, policy, or account number to which the request applies. The request shall remain in effect until the payor receives in writing from the payee a change in or revocation of the request. The department shall adopt guidelines and issue instructions as necessary to assist individuals in making the designations required by subdivision (3). (b) The payor is not required to withhold state income tax from a payment if the amount to be withheld is less than ten dollars ($10) or if the amount to be withheld would reduce the affected payment to less than ten dollars ($10). (c) The payor is responsible for custody of withheld funds, for reporting withheld funds to the state and to the payee, and for remitting withheld funds to the state in the same manner as is done for wage withholding, including utilization of federal forms and participation by Indiana in the combined Federal/State Filing Program on magnetic media. As added by P.L.91-1989, SEC.1. Amended by P.L.146-2008, SEC.320; P.L.197-2016, SEC.28.

Ind. Code § 6-3-4-16 Procedures to implement crosschecks between certain forms

Sec. 16. For individual income tax returns filed after December 31, 2010, the department shall develop procedures to implement a system of crosschecks between: (1) employer WH-3 forms (annual withholding tax reports) with accompanying W-2 forms; and (2) individual taxpayer W-2 forms. As added by P.L.146-2008, SEC.321.

Ind. Code § 6-3-4-16.3 Corporations; electronic return; exceptions

Sec. 16.3. (a) For taxable years ending after December 31, 2021, a corporation other than a corporation described in IC 6-3-2-2.8(2) subject to tax under this article and that has more than one million dollars ($1,000,000) in gross income (as defined in Section 61 of the Internal Revenue Code) for the taxable year shall file a return required under section 1(3) of this chapter for that taxable year in an electronic manner specified by the department. (b) If the department does not specify an electronic format for filing the required return for a corporation for purposes of section 1(3) of this chapter, the corporation is not required to file in an electronic manner. (c) Notwithstanding any other provision of this section, the department may provide exceptions to the requirement to file a return in an electronic manner specified by the department. Such exceptions shall be published in the Indiana Register. (d) For purposes of this requirement, a return for a corporation shall include any amended return for the corporation. As added by P.L.159-2021, SEC.17.

Ind. Code § 6-3-4-16.5 Electronic filing; withholding

Sec. 16.5. (a) This section applies to: (1) Form W-2 federal income tax withholding statements; (2) Form W-2G certain gambling winnings; (3) Form 1099-R distributions from pensions, annuities, retirement or profit sharing plans, IRAs, insurance contracts, or like distributions; and (4) Form WH-3 annual withholding tax reports; filed with the department after December 31, 2012. (b) If an employer or any person or entity acting on behalf of an employer files more than twenty-five (25): (1) Form W-2 federal income tax withholding statements; (2) Form W-2G certain gambling winnings; or (3) Form 1099-R distributions from pensions, annuities, retirement or profit sharing plans, IRAs, insurance contracts, or like distributions; with the department in a calendar year, all forms and Form WH-3 annual withholding tax reports filed with the department in that calendar year by the employer or the person or entity acting on behalf of the employer must be filed in an electronic format specified by the department. As added by P.L.113-2010, SEC.57. Amended by P.L.137-2012, SEC.59; P.L.234-2019, SEC.14.

Ind. Code § 6-3-4-16.7 Reports in electronic format

Sec. 16.7. (a) For taxable years ending after December 31, 2019, a partnership that is required to provide twenty-five (25) or more schedules K-1 of form IT-65 to partners or a corporation that is required to provide twenty-five (25) or more schedules K-1 of form IT-20S to shareholders must file all such schedules in an electronic format specified by the department. (b) For taxable years ending after December 31, 2021, an estate or trust required to provide ten (10) or more schedules K-1 of form IT-41 to beneficiaries must file all such reports in an electronic format specified by the department. (c) If the department receives a form IT-65, form IT-20S, or form IT-41 with more than fifty (50) schedules K-1 in a format other than the electronic format specified by the department, the department may provide written notification to the partnership, estate, or trust that the department will consider the schedules to not be filed until the schedules have been filed in the specified electronic format. As added by P.L.234-2019, SEC.15. Amended by P.L.146-2020, SEC.27.

Ind. Code § 6-3-4-17 Quarterly reports concerning local income taxes

Sec. 17. Beginning after December 31, 2010, the department and the office of management and budget shall: (1) develop a quarterly report that summarizes the amount reported to and processed by the department under section 4.1(c) of this chapter, section 15.7(a)(3) of this chapter, and IC 6-3.6-8-5 for each county; and (2) make the quarterly report available to county auditors within forty-five (45) days after the end of the calendar quarter. As added by P.L.146-2008, SEC.322. Amended by P.L.42-2011, SEC.14; P.L.197-2016, SEC.29; P.L.205-2025, SEC.12.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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