Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 3.1 - ADJUSTED GROSS INCOME TAX › Rule 1 - State Adjusted Gross Income Tax › Section 1-92 - Declarations of estimated tax by corporations

Current through July 10, 2024
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.