2023 Indiana Code › Title 6. Taxation › Article 3. State Income Taxes › Chapter 4.5. Partnership Audit and Administrative Adjustments › 6-3-4.5-2. Amended Return; Pass Through Entity; Adjustment for a Review Year; State Adjustment; Partnerships and Tiered Partners; Numerical Tier

Sec. 2. The following apply for purposes of this chapter:
(1) If a taxpayer has not filed a return under IC 6-3 or IC 6-5.5 for a taxable year, review year, or adjustment year, any reference to an amended return shall be a reference to an original return that includes any adjustments under this chapter.
(2) If a taxpayer is a partnership or pass through entity and has not issued a statement to its owners or beneficiaries, any reference to an amended statement shall be a reference to an original statement that includes any adjustment under this chapter.
(3) Any reference to tax shall include interest under IC 6-8.1-10-1 and penalties under IC 6-8.1.
(4) In the case of a final federal adjustment for a review year that is required, the adjustment shall be treated as:
(A) occurring in the review year, if and to the extent the adjustment:
(i) results in an imputed underpayment for federal purposes to the partnership;
(ii) would result in an imputed underpayment for federal purposes to the partnership for the review year except that the adjustment is reported by the partners of the partnership in the manner provided under Section 6225(c)(2) of the Internal Revenue Code; or
(iii) results in an adjustment that is passed through to the review year partners for federal tax purposes, in the case of a partnership that makes a valid election pursuant to Section 6226 of the Internal Revenue Code; or
(B) occurring in the adjustment year, to the extent a tax attribute is taken into account by the partnership as provided under Section 6225(a)(2) of the Internal Revenue Code and regardless of whether the item is a separately stated item for partners for federal income tax purposes.
(C) For purposes of clauses (A) and (B):
(i) a federal adjustment netted against another federal adjustment for purposes of determining an imputed underpayment for federal purposes to the partnership, or for purposes of determining a partner's federal tax due with respect to a review year, is considered to occur in the review year;
(ii) a federal adjustment permitted to reduce the imputed underpayment for federal purposes for a partnership, or permitted for purposes of determining a partner's federal tax due or federal tax attributes with respect to a review year, and not otherwise described in item (i), is considered to occur in the review year; and
(iii) if an adjustment related to a review year affects a tax attribute of a partner such that the partner is required to change one (1) or more tax attributes for federal purposes for a year other than the review year, the partner shall treat the change in the tax attribute as occurring for Indiana purposes in the same year as the change is required for federal purposes.
(5) In the case of a state adjustment, the change shall be treated as occurring in the taxable year to which the state adjustment relates, unless the adjustment is treated as occurring in a different year as a result of subdivision (4).
(6) For taxable years beginning before January 1, 2017, any reference to IC 6-3.6 shall be construed to include IC 6-3.5-1.1, IC 6-3.5-6, and IC 6-3.5-7, prior to their repeal.
(7) With respect to partnerships and tiered partners:
(A) a partner that is a partnership that receives a report of partnership adjustments, receives a final federal adjustment, or files an amended return is considered a tier one (1) entity;
(B) a tiered partner that is a direct partner of a tier one (1) entity is considered a tier two (2) entity; and
(C) each tiered partner that is an owner, beneficiary, or partner of an entity that is a tier two (2) entity or higher shall be assigned a tier number that is one (1) tier higher and is considered an entity in that tier.
If, after application of this subdivision, a tiered partner is assigned to more than one (1) tier, the tiered partner shall be treated as being assigned to the highest numerical tier to which the tiered partner could be assigned.
(8) In the case of a partnership or tiered partner that is assigned a numerical tier, the applicable deadline for purposes of this chapter is:
(A) in the case of a tier one (1) entity receiving a report of partnership adjustments, ninety (90) days from the date the report of partnership adjustments is final;
(B) in the case of a tier one (1) entity that has received a final federal adjustment, one hundred eighty (180) days from the final determination date;
(C) in the case of a tier one (1) entity that has filed an amended return under this chapter other than an amended return resulting from a final federal adjustment, zero (0) days; and
(D) in the case of a tiered partner that has received adjustments resulting from a tier one (1) partnership, a number of days equal to:
(i) the number of days described in clauses (A) through (C), as applicable; plus
(ii) thirty (30) multiplied by the tier number assigned to the tiered partner; minus
(iii) thirty (30).
However, if a tiered partner receives an adjustment reported on a partnership audit tracking report under Section 6226 of the Internal Revenue Code, the time period applicable for the tiered partner is the longer of the time period described in clause (D) or ninety (90) days from the date prescribed in Section 6226(b)(4)(B) of the Internal Revenue Code, and any other applicable deadlines under this subdivision or subdivision (9).
(9) Any reference to an election under section 9(c) of this chapter includes an election under sections 6(d) and 8(c) of this chapter.
(10) In the case of a direct partner or indirect partner that is not a tiered partner, the applicable deadline for purposes of this chapter is ninety (90) days after the applicable deadline that is determined for the partnership or tiered partner under subdivision (8). If a direct partner or indirect partner described in this subdivision is subject to more than one (1) applicable deadline, the applicable deadline is the latest date determined under this subdivision.
As added by P.L.159-2021, SEC.18. Amended by P.L.137-2022, SEC.42.