45 Ind. Admin. Code 3.1-1-92
Authority: IC 6-8.1-3-3
Affected: IC 6-3-4-4
Sec. 92.
Declaration of Estimated Tax By Corporations. Corporations are required under Indiana law to make estimated payments of both gross and adjusted gross income tax, as well as supplemental net income tax.
Any corporation whose gross income tax liability exceeds $250.00 ($25.00 prior to January 1, 1978) per quarter is required to file a Corporation Quarterly Income Tax Return, Form IT-6, within thirty (30) days after the close of the quarter. Failure to make quarterly payments of gross income tax will result in a 10% penalty together with interest at 8% per annum.
Corporations are required to make quarterly payments of the adjusted gross income tax when the estimated annual amount of such tax exceeds the gross income tax by more than $1,000.00. Quarterly payments of supplemental net income tax are required when the estimated annual amount of such tax exceeds $1,000.00. Failure to make quarterly payments will result in an 8% penalty as explained in IC 6-3-4-4(c).
Tax booklets which include the necessary quarterly and annual tax returns will be mailed automatically once the corporation is established on the mailing list after the initial return is filed.
Use of the correct Federal Identification Number is most important in assuring credit to the proper account. If the I.D. number is changed in any way, an explanation for the change should be sent to the Department immediately.
All taxpayers are cautioned that fifth quarter or supplemental payments with extensions are to be clearly designated as such so that the payment is not applied to a subsequent taxable year. In addition, all taxpayers should note that refunds derived from filing the annual corporate income tax return cannot be applied to the next taxable year's quarterly estimated liability. If a taxpayer has overpaid quarterly payments, the credit must be claimed on the annual corporate return to obtain a refund. If a taxpayer remits one check for the entire remainder of a year's estimated liability, no further quarterly returns should be filed with the Department after the date of the payment. It is important to note that all checks remitted to the Department should be accompanied by a return or a complete explanation for the payment.
EXAMPLES OF QUARTERLY INCOME TAX PAYMENTS
EXAMPLE A
| (1) Estimated Adjusted Gross Income for the quarterly period ........................................................................ | . . . $1,025,000 | |
| (2) Estimated Adjusted Gross Income Tax (3%) ....................................... | ....... 30,750 | |
| (3) Gross Income Tax ............................................................ | ....... 30,250 | |
| (4) Excess Line 2 minus Line 3 .................................................... | ......... 500 | |
| Quarterly Tax Payments-Gross Income Tax ..................................... | ...... $30,250 | |
| Adjusted Gross Income Tax | 500 | |
| Total ............................................................... | ............. | $ 30,750.00 |
| Supplemental Net Income Tax- | ||
| Supplemental Net Income for the quarterly period-Subtract the greater of the estimate income tax or gross income tax from adjusted gross income .................... | d adjusted gross . . $994,250.00 | |
| Supplemental Net Income Tax (3%) ...................................... | . . . . 29,827.50 | |
| Quarterly tax payment ................................................. | ............. | $ 29,827.50 |
| Total Quarterly Payment .................................................... | ............. | $ 60,577.50 |
| EXAMPLE B | ||
| (1) Estimated Adjusted Gross Income for the quarterly period ........................................................................ | . $1,000,000.00 | |
| (2) Estimated Adjusted Gross Income Tax (3%) ....................................... | ............. | 30,000.00 |
| (3) Gross Income Tax ............................................................ | . . . . 31,250.00 | |
| (4) Excess Line 2 minus Line 3 | -0- | |
| Quarterly Tax Payment-Gross Income tax ....................................... | . . . $31,250.00 | |
| Adjusted Gross Income Tax | -0- | |
| Total .................................................................... | ............. | $ 31,250.00 |
| Supplemental Net Income Tax | ||
| Supplemental Net Income for the quarterly period-Subtract the greater of the estimate income tax or gross income tax from adjusted gross income .................... | d adjusted gross . . $968,750.00 | |
| Supplemental Net Income Tax (3%) ...................................... | . . . $29,062.50 | |
| Quarterly tax payment ................................................. | ............. | $ 29,062.50 |
| Total Quarterly Payment .................................................... | ............. | $ 60,312.50 |
PENALTIES
Eight percent (8%) penalty per annum shall be assessed by the Department on corporations failing to make payments as required of the adjusted gross income tax and the supplemental net income tax; however, no penalty shall be assessed as to any quarterly payment which equals or exceeds twenty percent (20%) of the final tax liability for such taxable year, or as to any quarterly payment which shall equal or exceed twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year. The eight percent (8%) per annum penalty as to any underpayment of tax on a quarterly return shall only be assessed on the difference between the actual amount paid by the corporation on such quarterly return and twenty-five percent (25%) of the corporation's final adjusted gross income tax liability or supplemental net income tax liability, as the case may be for such taxable year.
NOTE:
The information contained herein with regard to the adjusted gross income tax and the supplemental net income tax is not applicable to municipal corporations and not-for-profit organizations which are exempt from Federal income taxes.
45 IAC 3.1-1-92