Indiana Current Year Financial Institution Tax Forms & Instruction Booklet
Extracted from PDF file 2020-indiana-fit-20-booklet.pdf, last modified January 2021
Current Year Financial Institution Tax Forms & Instruction BookletIndiana Department Of Revenue P.O. Box 7228 Indianapolis, In 46207-7228 www.in.gov/dor SP 244 (R18 / 8-20) STATE OF INDIANA Financial Institution Tax Booklet 2020 Form FIT-20 This booklet contains forms and instructions for preparing Indiana financial institution returns for tax year 2020 and for fiscal years beginning in 2020 and ending in 2021. Table of Contents General Filing Requirements for FIT-20 Forms and Schedules..............................................................................................................................3 Instructions for Completing Form FIT-20.................................................................................................................................................................7 Instructions for FIT-20 Schedule E-U Apportionment of Receipts to Indiana..................................................................................................18 Instructions for Filing a Combined Return: Attributing Receipts of a Taxpayer Filing a Combined Return..................................................................................................................................................................................18 Instructions for Schedule FIT-NRTC - Nonresident Tax Credit..........................................................................................................................19 Instructions for Form FT-ES......................................................................................................................................................................................20 Special Reminders.......................................................................................................................................................................................................20 2 What’s New for 2020 Annual Public Hearing In accordance with the Indiana Taxpayer Bill of Rights, the Department will conduct an annual public hearing in Indianapolis in June of 2021. Event details will be listed at www.in.gov/dor/news-media-and-publications/dor-publicevents/annual-public-hearings/. Please come and share feedback or comments about how the Department can better administer Indiana tax laws. If you cannot attend, please submit feedback or comments in writing to Indiana Department of Revenue, Commissioner’s Office MS# 101, 100 N. Senate Ave., Indianapolis, IN 46204. Online Pay Available through INTIME INTIME, Indiana’s new online tax portal is available as of September 3, 2019. INTIME provides the following functionality to FIT-20 customers: x Make payments using a bank account or credit card x View and respond to correspondence from DOR x Request and print return transcripts on-demand x Electronic delivery of correspondence x Online customer service support through secure messaging Our homepage provides access to forms, information bulletins and directives, tax publications, email, and various filing options. Visit www.in.gov/dor/. Increased Online Support for Tax Preparers In addition to the functionality listed above, INTIME provides increased access and functionality for tax preparers. INTIME provides the following functionality for tax preparers: x Gain access to view and manage multiple customers under one login x Ability to file returns, make payments, and view file and pay history for clients x Request an electronic power of attorney (ePOA) authorization to view client accounts x View and respond to correspondence for clients General Filing Requirements for FIT-20 Forms and Schedules Copies of pages 1 through 5 of the corporation’s federal income tax return must be enclosed with Form FIT-20 along with Schedule M-3 as well as any extension of time to file form(s). This requirement is made under the authority of Indiana Code (IC) 6-5.5-6-5. References to the Internal Revenue Code Extension of Time to File Public Law (PL) 146-2020, Sec. 22, amended Indiana Code (IC) 6-3-1-11. The definition of adjusted gross income (AGI) is updated to correspond to the federal definition of adjusted gross income contained in the Internal Revenue Code (IRC). Any reference to the IRC and subsequent regulations means the Internal Revenue Code of 1986, as amended and in effect on January 1, 2020. For a complete summary of new legislation regarding taxation, please see the Synopsis of 2020 Legislation Affecting the Indiana Department of Revenue at www.in.gov/dor/ files/legislative-synopsis-2020.pdf. Effective Jan. 1, 2015, all Indiana financial institutions tax return due dates are treated the same as extensions granted because of a federal income tax due date extension. Who Must File Form FIT-20 IC 6-5.5-2-1 imposes a financial institution tax on the adjusted gross income of any corporation transacting the business of a financial institution, including a holding company, a regulated financial corporation, a subsidiary of a holding company or regulated financial corporation, or any other corporation carrying on the business of a financial institution. Any taxpayer who is subject to tax under IC 6-5.5 is exempt from Indiana’s adjusted gross income tax. Add-Backs x The deferral of business indebtedness discharge and reacquisition add-back (107) is no longer available. The financial institution tax extends to financial institutions and to all other corporate entities when 80% or more of its gross income is derived from activities that constitute the business of a financial institution. The business of a financial institution is defined as activities authorized by the federal reserve board; the making, acquiring, selling, or servicing of loans or extensions of credit; acting as an agent, a broker, or an advisor in connection with leasing real and personal property that is the economic equivalent of an extension of credit; or operating a credit card, debit card, or charge card business. Credits x Redevelopment Tax Credit. You may be eligible for a credit if you made a qualified investment for the redevelopment or rehabilitation of real property located within a qualified redevelopment site. x School Scholarship Tax Credit Contribution Ceiling Increased. The total of allowable net contributions to the program has increased to $16.5 million for the program’s fiscal year of July 1, 2020 through June 30, 2021. x Venture Capital Investment Credit reporting change. This credit must initially be reported on Schedule IN-OCC. File the general Indiana corporate adjusted gross income tax return, Form IT-20, if for the taxable year the 80% threshold of gross income derived from activities that constitute the business of a financial institution is not met. This form is available online at www.in.gov/dor/tax-forms/2020corporatepartnership-income-tax-forms/. 3 Due Date Exempt Transactions The return due date is the 15th day of the 5th month after the end of the tax year. A taxpayer is not considered to be transacting business in Indiana if the ONLY activities of the taxpayer in Indiana are in connection with any of the following: • Maintaining or defending an action or a suit; • Filing, modifying, renewing, extending, or transferring a mortgage, deed of trust, or security interest; • Acquiring, foreclosing, or otherwise conveying property in Indiana as a result of a default under the terms of a mortgage, deed of trust, or security interest relating to the property; • Selling tangible personal property, if taxation under this law is precluded because of P.L. 86-272; • Owning an interest in the following types of property even though activities are conducted in Indiana that are reasonably required to evaluate and complete the acquisition or disposition of the property, the servicing of the property, or the income from the property, or the acquisition or liquidation of collateral relating to the property; • An interest in a real estate mortgage investment conduit, a real estate investment trust, or a regulated investment company; • An interest in a loan-backed security representing ownership or participation in a pool of promissory notes or certificates of interest providing for payments in relation to payments or reasonable projections of payments on the notes or certificates; • An interest in a loan or other asset where the interest is attributed to a consumer loan, commercial loan, or secured commercial loan and where the payment obligations were solicited and entered into by a person who is independent and not acting on behalf of the owner; • An interest in the right to service or collect income from a loan or other asset where interest on the loan is attributed as a loan described above and the payment obligations were solicited and entered into by a person who is independent and not acting on behalf of the owner; or • An amount held in an escrow or trust account with respect to the property described previously. Acting: • As an executor of an estate; • As a trustee of a benefit plan; • As a trustee of an employee’s pension, profit sharing, or other retirement plan; • As a trustee of a testamentary or inter vivos trust or corporate indenture; or • In any other fiduciary capacity, including holding title to real property in Indiana. Apportionment of Adjusted Gross Income The financial institution tax is imposed on the apportioned Indiana income of financial institutions. The law employs a single-factor receipts formula to determine the percentage of the taxpayer’s income subject to the tax. The single-factor formula is derived by dividing the gross receipts attributable to transacting business in Indiana by the total receipts from transacting business in all taxing jurisdictions. Nexus Rules The law is based on the ability of a corporation under modern technology to transact the business of a financial institution in Indiana, regardless of the principal location of its offices and employees. A taxpayer is transacting business in Indiana for purposes of the FIT when it satisfies any of the following eight tests: • Maintains an office in Indiana; • Has an employee, a representative, or an independent contractor conducting business in Indiana; • Regularly sells products or services of any kind or nature to customers in Indiana who receive the product or service in Indiana; • Regularly solicits business from potential customers in Indiana; • Regularly performs services outside Indiana that are consumed within Indiana; • Regularly engages in transactions with customers in Indiana involving intangible property, including loans, but not property described in IC 6-5.5-3-8(5), and resulting in receipts flowing to the taxpayer from within Indiana; • Owns or leases tangible personal or real property located in Indiana; or • Regularly solicits and receives deposits from customers in Indiana. A taxpayer is presumed to “regularly” engage in the above activities when its assets attributable to Indiana are equal to at least $5 million or it has 20 or more Indiana customers. Exempt Entities Four specific types of organizations are exempted from the FIT: • Insurance companies otherwise subject to tax under IC 6-3, IC 27-1-2-2.3, or IC 27-1-18-2; • International banking facilities; • S corporations exempt from income tax under IRC Section 1363; and • Nonprofit corporations unless the nonprofit corporation has unrelated business income (with the exception of state chartered credit unions). Federal law prohibits state taxation of federally chartered credit unions. Method of Reporting A taxpayer is allowed to file a separate return only in those instances where the taxpayer is not a member of a unitary group. Members of a unitary group must file collectively on one combined return. No provision is made for filing consolidated returns. 4 If the taxpayer is a member of a unitary group, combined reporting is mandatory. However, if the taxpayer determines that its Indiana income is not accurately reflected by the filing of a combined return, the taxpayer can petition the Department. Such petition is subject to approval by the Department. The petition must include the name and federal employer identification number of each member of the group petitioning for an alternative method. Each member must include its justification for the alternative method. If the entity is a partnership and has nonresident corporate partners that are themselves conducting the business of a financial institution, the partnership is required to withhold FIT on behalf of the non-resident corporate partner on the nonresident partner’s share of the partnership income. If the nonresident corporate partner is not otherwise itself conducting the business of a financial institution, the partnership is required to withhold Indiana adjusted gross income tax on the non-resident partner’s share of the partnership income. The apportionable income attributable to the partner is the same percentage as its distributive share of the partnership’s income. Petitions can also be sent to: Indiana Department of Revenue Tax Policy Division 100 N Senate Ave, N248, MS 102 Indianapolis, IN 46204-2253 A partnership is not required to withhold FIT on behalf of its resident corporate partners. The resident corporate partners are responsible for paying the relevant FIT or adjusted gross income tax themselves. See the Instructions for Form IT-65 for further information regarding withholding requirements. Once the petition is approved, the taxpayer will indicate on the annual return that the return is a separate return made by a member of a unitary group. Attach the Department’s letter granting petition to the annual return filing. Example: A bank in Maine and a bank in Indiana form a partnership to make loans to Indiana borrowers. The only Indiana activity of the Maine bank is its involvement in the partnership. The partnership is required to withhold FIT on the Maine bank’s share of the partnership income. Members of a Unitary Group The combined return shall include the adjusted gross income of all members of the unitary group that are transacting business wholly or partially within Indiana. The statute provides exclusion for the income of corporations or other entities organized in foreign countries, except a federal or state branch of a foreign bank or its subsidiary that transacts business in Indiana. United States Government Obligations Although interest earned on U.S. obligations is not subject to income taxation, it is not preempted by federal law from being included in the tax base of a franchise tax. Therefore, interest from U.S. obligations is not to be subtracted from federal taxable income in determining the adjusted gross income for the FIT. “Unitary business” means business activities or operations that are of mutual benefit, dependent upon or contributory to one another, individually or as a group, in transacting the business of a financial institution. The term can be applied within a single entity or between multiple entities and without regard to whether each entity is a corporation, partnership, or trust. Unity is presumed if there is unity of ownership, operation, or use as evidenced by centralized purchasing, advertising, accounting, or other controlled interaction among entities that are members of the unitary group as defined in IC 6-5.5-1-18(a). Extensions for Filing The Department accepts the federal extension of time application (Form 7004) or the federal electronic extension. If the taxpayer has one, there is no need to contact the Department prior to filing the annual return. Returns postmarked within 30 days after the last date indicated on the federal extension will be considered timely filed. If the taxpayer does not need a federal extension of time but needs one for filing a state return, submit a letter requesting such an extension to the Department prior to the due date of the annual state return. Unity of ownership exists for a corporation if it is a member of a group of two or more business entities, 50% of whose voting stock is owned by a common owner or owners or by one or more of the member corporations of the group. To request an Indiana extension of time to file, contact: Indiana Department of Revenue Corporate Income Tax Tax Administration P.O. Box 7206 Indianapolis, IN 46207-7206 The taxpayer designated as the reporting member of a unitary group shall file a combined return that includes all operations of the unitary business. List members included in the combined return by completing FIT-20 Schedule H. See page 18, Instructions for Filing a Combined Return. If there is a valid extension of time or a federal electronic extension to file, check Yes on line V on the front of the return. If applicable, enclose a copy of the federal extension of time when filing the state return. Partnerships Partnerships and trusts as entities are not subject to FIT. Partnerships conducting the business of a financial institution are required to file the appropriate informational return, Form IT-65. Trusts conducting the business of a financial institution in Indiana are required to file the appropriate tax returns. 5 Electronic Funds Transfer Requirements An extension of time granted under IC 6-8.1-6-1 waives the late payment penalty for the extension period on the balance of tax due provided at least 90% of the tax due is paid by the original due date and the remaining balance, plus interest, is paid in full by the extended due date. Form FT-QP should be used to make an extension payment for the taxable year. This payment will be processed as a fifth estimated payment. Use the preprinted extension form included with the previous estimated coupon packet Form FT-ES. A taxpayer’s quarterly estimated tax payments must be remitted by electronic funds transfer (EFT) if the amount of financial institution tax exceeds an average liability of $5,000 per quarter (or $20,000 annually). If the Department is unable to obtain payment by the EFT, a penalty of 10% of either the unpaid tax or EFT, whichever is less, will be assessed. Because there is no minimum amount of payment, the Department encourages all taxpayers not required to remit by EFT to participate voluntarily in our EFT program. Note. Any tax paid after the original due date must include interest. Interest on the balance of tax due must be included with the return when it is filed. Interest is computed from the original due date until the date of payment. In October of each year, the Department establishes the interest rate for the next calendar year. See Departmental Notice #3 at www.in.gov/dor/legal-resources/ tax-library/departmental-notices/ for interest rates. Note. Taxpayers remitting by EFT should not file quarterly FT-QP coupons. The amounts paid by EFT are reconciled when filing the annual income tax return. If the Department notifies a corporation of the requirements to remit by EFT, the corporation must remit via EFT by the date/tax period specified by the Department. Amended Returns Failure to comply with the EFT requirement will result in a 10% penalty on each quarterly estimated tax payment not sent by EFT. Indiana Code does not require the extension of time to file payment or final payment due with the annual tax return to be made by EFT. Be sure to claim any EFT payment as an extension or estimated payment credit. Do not file a return indicating an amount due for an amount that has been paid by EFT. A taxpayer must notify the Department within 180 days of final alterations or modifications to its federal income tax return (federal adjustment, RAR, etc.) by filing an amended Form FIT-20. To amend a previously filed Form FIT-20, file a corrected copy of the original form. Check the box at the top of the form for filing an amended return. Penalty for Underpayment of Estimated Taxes (IC 6-5.5-7-1) To claim a refund of an overpayment, file the return within three years from the latter of the date of the overpayment or the due date of the return. IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a reduction in tax liability resulting from a final federal modification. The claim for refund must be filed within 180 days from the date of notice of the final modification by the Internal Revenue Service unless the normal three year statute of limitations has yet to expire. If an agreement to extend the statute of limitations for an assessment is entered into between the taxpayer and the Department, the period for filing a claim for refund is likewise extended. Corporations estimating financial institution tax liability are subject to a 10% underpayment penalty if the corporation fails to file estimated tax payments or fails to remit the sufficient amount of estimated payments. To avoid the penalty, the required quarterly estimated payment(s) should include at least 20% of the final financial institution tax liability for the current taxable year or 25% of the corporation’s final financial institution tax liability for the previous tax year. The penalty for the underpayment of estimated tax is assessed on the difference between the actual amount paid by the corporation for each quarter and 20% of the final liability for the current year or 25% of the corporation’s final tax liability for the previous tax year, whichever is less. Refer to Schedule FIT-2220, Underpayment of Estimated Tax by Financial Institutions, on return page 4 of Form FIT-20. Estimated Quarterly Payments Quarterly payments of estimated financial institution tax are required under IC 6-5.5-6-3 if the annual tax liability is $2,500 or more. The quarterly due dates for estimated quarterly payments of a calendar year filer are April 20, June 20, September 20, and December 20 of the taxable year. If a taxpayer uses a taxable year that does not end on December 31, the due dates for the estimated quarterly financial institution tax payments are on or before the 20th day of the 4th, 6th, 9th, and 12th months of the taxpayer’s taxable year. The payments must be made with the financial institution estimated quarterly vouchers, Form FT-QP. The Department mails preprinted FT-QP vouchers to current FIT estimated account holders. Important. Estimated payments of $5,000 or more are required to be made electronically, with a penalty assessed for failure to comply. See page 3 for information about using INTIME, Indiana’s online tax portal. 6 Important: To help provide relief during the COVID-19 health crisis, the Indiana Department of Revenue extended the due dates for certain estimated tax payments. While estimated payments are usually due the 20th day of the 4th, 6th, 9th and 12th months of the tax year, adjustments are necessary for years beginning Jan. 1, Feb. 1, or March 1, 2020. Use the chart below to see if any of the modified due dates below apply to you. Fill in the proper due dates on Schedule FIT-2220, Line 6. Year Beginning 1st Qtr Due Date 2nd Qtr Due Date 3rd Qtr Due Date 4th Qtr Due Date 01/1/2020 02/1/2020 03/1/2020 04/1/2020 07/15/2020 07/15/2020 07/15/2020 07/20/2020 07/15/2020 07/20/2020 08/20/2020 09/20/2020 09/20/2020 10/20/2020 11/20/2020 12/20/2020 12/20/2020 01/20/2021 02/20/2021 03/20/2021 Enter the principal business activity code, derived from the North American Industry Classification System (NAICS), in the designated block of the return. Use the six-digit activity code as reported on the federal corporation return. Lines L through W of the FIT-20 must be completed for the return to be accepted by the Department. Check or complete all boxes that apply to the return. Check the “final return” box only if the corporation is dissolved, liquidated, or has withdrawn from the state. Timely file Form BC-100 to close out any sales and withholding accounts. Complete these online at www.in.gov/dor/business-tax/closing-abusiness-account/. Check the appropriate box if filing as a real estate mortgage investment conduit (REMIC). Note. The return for a REMIC is due on the15th day of the 4th month following the close of the taxpayer’s tax year. Instructions for Completing Form FIT-20 Indicate on line V if an extension of time to file is in effect. If applicable, enclose a copy of federal Form 7004 when filing the state return. Filing Period and Identification File a 2020 Form FIT-20 return for a taxable year ending Dec. 31, 2020; a short tax year beginning in 2020 and ending in 2020; or a fiscal tax year beginning in 2020 and ending in 2021. For a short or fiscal tax year, fill in the beginning month and day and the ending date of the taxable year at the top of the form. Schedule A — Line Instructions Per IC 6-8.1-6-4.5, round amounts to the nearest whole dollar. Each line on which an amount can be entered has a “.00” already filled in. This is a reminder that rounding is now required when completing the tax return. Please use the correct legal name of the corporation and its present mailing address. Also, do not use a comma in dollar amounts of four digits or more. For example, instead of entering “3,455” enter “3455.” For foreign addresses, please note the following: • Be sure to enter the name of the city, town, or village in the box labeled City; • Be sure to enter the name of the state or province in the box labeled State; and • Be sure to enter the postal code and the 2-digit country code in the box labeled ZIP Code. Line 1. Enter federal taxable income from Federal Form 1120 before the net operating loss deduction or the special federal deduction. Note. If filing as a state-chartered credit union or an investment company registered under the Investment Company Act of 1940, proceed to line 19 to enter adjusted gross income as defined under IC 6-5.5-1-2(b) and(c). For a name change, check the box at the top of the return. Enclose with the return copies of the amended Articles of Incorporation or an Amended Certificate of Authority filed with the Indiana Secretary of State. Line 2. Enter the qualifying dividend deduction. Line 3. Subtract line 2 from line 1. Note. Corporate addresses, contact names, and other account information may be updated through our self-service portal, INTIME. Add backs: Lines 4 through 10. Line 4. Enter the amount deducted for bad debt (IRC Sec. 166). See line 16 to report recovery of a previously reported worthless debt to the extent a deduction was allowed from gross income in a prior tax year under IRC Sec. 166(a). The federal employer identification number (FEIN) shown in the box must be correct. List the two-digit county code if filing a return for a corporate address in Indiana. See Departmental Notice #1 located at www.in.gov/dor/legal-resources/tax-library/departmentalnotices/ for a list of county codes. Enter “00” (two zeroes) in the county box D if corporate address lies outside of Indiana. Line 5. Enter the amount deducted for bad debt reserves of banks (IRC Sec. 585). Line 6. Enter the amount deducted for bad debt reserves (IRC Sec. 593). 7 Line 7. Enter the amount deducted for charitable contributions (IRC Sec. 170). See Information Bulletin #118 available at www.in.gov/dor/ legal-resources/tax-library/information-bulletins/income-taxinformation-bulletins/ for information on the allowance of depreciation for state tax purposes. Line 8. Enter the amount deducted on the federal return for all state and local taxes based on or measured by income (IRC Sec. 63). Line 11C. Add or subtract the amount necessary to make the adjusted gross income of the taxpayer that placed any IRC Section 179 property in service in the current taxable year or in an earlier taxable year equal to the amount of adjusted gross income that would have been computed as if the federal limit for expensing under IRC section 179 was $25,000 as opposed to $1,000,000. Line 9. Enter an amount equal to the capital loss carryover (from federal Schedule D: line 4, minus line 14 loss amount) to the extent used in offsetting capital gains allowed under IRC Section 1212. See the instructions to line 23 for subtracting the amount deductible for Indiana net capital losses. Indiana has adopted an expensing cap of $25,000. This modification affects the basis of the property if a higher Section 179 limit was applied. The federal increase to a $1,000,000 deduction was not allowed for purposes of calculating Indiana adjusted gross income. However, the $2,500,000 threshold for phase-out is allowed for purposes of calculating Indiana AGI. The depreciation allowances in the year of purchase and in later years must be adjusted to reflect the additional first-year depreciation deduction, including the special depreciation allowance for 100% bonus depreciation property, until the property is sold. Line 10. Enter the amount of interest on state and local obligations excluded under IRC Section 103, or under any other federal law, minus the associated expenses disallowed in the computation of taxable income under IRC Section 265. Lines 11 A, B, C, and D. Other Income Modifications Enclose a complete explanation for adjustments. Line 11A. Add or subtract an amount equal to the amount claimed as a deduction for excess business interest. If a deduction for interest paid or incurred in the current year has been disallowed under IRC Section 163(j), subtract the amount of interest disallowed in the current year. If you have interest that was actually paid or incurred in a previous taxable year but disallowed for federal purposes due to the limitations under IRC Section 163(j) AND deducted for federal purposes in the current taxable year, add back the amount of interest so deducted for federal purposes. Special rules may apply if the Section 179 expensing is taken against property acquired in a like-kind exchange. See Information Bulletin #118 at www.in.gov/dor/legal-resources/taxlibrary/information-bulletins/income-tax-information-bulletins/ for additional information. Note. The net amount determined for the net bonus depreciation or the IRC Section 179 add-back might be a negative figure (because of a higher depreciation basis in subsequent years). If it is, use a minus sign to denote that. (If the taxable income is a loss, this adjustment increases a loss when added back.) Enclose a statement to explain the adjustment. Line 11B. Add or subtract an amount attributable to bonus depreciation in excess of any regular depreciation that would be allowed had not an election under IRC Section 168(k) been made as applied to property in the year that it was placed into service. Taxpayers who own property for which additional firstyear special depreciation for qualified property, including 100% bonus depreciation, was allowed in the current taxable year or in an earlier taxable year, must add or subtract an amount necessary to make adjusted gross income equal to the amount computed without applying any bonus depreciation. The subsequent depreciation allowance is to be calculated on the state’s steppedup basis until the property is disposed. If line 11B’s amount is negative, use a minus sign to denote that. Line 11D. Deduct the amount of income from qualified utility and plant patents included in federal taxable income. Note. Use a minus sign to denote the negative amount. For tax years beginning after Dec. 31, 2007, this income is exempt from Indiana AGI. For more information, see Information Bulletin #104 available at www.in.gov/dor/legal-resources/tax-library/ information-bulletins/income-tax-information-bulletins/. Lines 12 A, B, C, and D. Total Addbacks Enter any addbacks and deductions on lines 12A through 12D. Enter the name of the addback/deduction, its 3-digit code, and its amount. Use a minus sign to denote a negative amount. Attach additional sheets if necessary. Special rules may apply if the bonus depreciation is taken against property acquired in a like-kind exchange. See Information Bulletin #118 at www.in.gov/dor/legal-resources/tax-library/ information-bulletins/income-tax-information-bulletins/ for additional information. Adding Back Depreciation Expenses Several of the discontinued add-backs were created by timing differences between federal and Indiana allowable expenses. Following is an example of how to report a difference: The additional regular depreciation may be excluded in subsequent years from the amounts to be added back on line 11B, or 11C when excess IRC Section 179 deduction or bonus depreciation was elected for assets placed in service in those subsequent years. 8 Line 19. Total Income Prior to Apportionment: Subtract line 18 from line 14. Example. ABC Company has qualified restaurant equipment. For federal tax purposes, they use the accelerated 15-year recovery period for an asset placed in service in 2009. Since 2009, ABC Company has been adding back the depreciation expense taken for federal purposes that exceeded the amount allowable for Indiana purposes. The accumulated depreciation on such an asset through 2012 is, therefore, different for federal and state purposes. This difference will remain until the asset is fully depreciated or until the time of its disposition. State-chartered credit unions must begin on line 19 by entering “adjusted gross income.” For state-chartered credit unions, “adjusted gross income” equals the total transfers to undivided earnings, minus dividends for that taxable year after statutory reserves are set aside under IC 28-7-1-24. In other words, “adjusted gross income” can be defined as net transfers to undivided earnings. No other deductions are permitted. The above definition also applies to a nonresident credit union doing business in Indiana. So, in this example, the asset was acquired in January 2009 at a purchase price of $120,000. This normally would have a 25-year recovery period, but IRC Sec. 168 allows for a 15-year recovery period. Tax year 2012 is the last year ABC Company will have reported a qualified restaurant equipment addback until the end of the 15-year recovery period. Investment companies, defined under IC 6-5.5-1-2(d), must begin on line 19 by reporting federal taxable income computed according to the Internal Revenue Code plus interest on state and local obligations acquired by the taxpayer after Dec. 31, 2011, and excluded from federal gross income under IRC section 103 , before any net operating loss deduction. An investment company must also complete line 12 of FIT-20 Schedule E-U. If this asset was sold before being fully depreciated, the catch-up modification would be reflected in the year of the sale. However, if this property is held through 2023 (the 15th year of depreciation), ABC Company will report a negative $9,600 catch-up addback on the 2023 state tax return. Line 20. Total Income Prior to Apportionment: Enter the amount carried from line 19. The following addbacks and deductions should be entered on lines 12A through 12D: Line 21. Apportionment Percentage: (See instructions for Schedule E-U.) This line should be used by all taxpayers and unitary groups. Enter the amount from line 15 of Schedule E-U. Government or Civic Group Capital Contribution Deduction (3-digit code: 633) Subtract any amount included in federal taxable income that are capital contributions from a government or civic group and not excluded under IRC Section 118. Line 22. Apportioned Adjusted Gross Income for Indiana: Multiply line 20, total income subject to apportionment, by line 21, apportionment percentage from Schedule E-U. Line 23. Indiana Net Capital Loss Adjustment: Enter your Indiana net capital loss carryover (see the sample worksheet on page 10). Line 23 is limited to the amount on line 22. Also, line 9 must be completed to add back an amount equal to the federal net capital loss deduction. Line 13. Total Addbacks: Add lines 4 through line 12D. Line 14. Subtotal Income: Add line 3 and line 13. Deductions from Income Line 15. Subtract net income (foreign gross receipts less the foreign deductions) derived from sources outside the United States as defined in the Internal Revenue Code and included in federal taxable income. Include all repatriated dividend income listed on the IRC 965 Transition Tax Statement and included in Line 1 of the FIT-20 on this line. Filers should keep detailed records as the Department can ask for this information at a later date. Note. Excess capital losses may be carried forward for five years following the loss year; however, there is no provision for the carryback of a capital loss incurred under the FIT. Net Capital Loss Adjustment for FIT-20 Line 23 — Sample Worksheet Enclose with the return the worksheet that shows the following calculations. Use this format to determine the available amount of an Indiana net capital loss and the remainder to carry forward. Add sheets to include all members of a unitary group. See the worksheet on page 11. Line 16. Subtract an amount equal to a debt or portion of a debt becoming worthless (IRC Sec. 166). This will include reporting a modification as a positive adjustment for any recovery of an amount of previously reported bad debts that were included in a bad debt deduction in prior years (applicable to taxpayers not defined as a large bank under IRC Section 585(c)(2) or Savings Association under IRC Section 593). Computation of Indiana Net Capital Loss for Carryforward For a taxpayer who is not filing a combined return, the taxpayer’s taxable income consists of an adjustment for net capital losses computed under the Internal Revenue Code and derived from Indiana. Capital losses and capital gains derived from Indiana are determined by the apportionment percentage applicable to each taxable year. Line 17. Subtract an amount equal to any bad debt reserves included in federal income because of accounting method changes required by IRC Sec. 585(c)(3)(A) or IRC Section 593. Line 18. Total Deductions: Add lines 15 through 17. 9 Example Loss Year Ending: 12-31-2017 1. Net capital loss from federal Schedule D without IRC Section 1212 carryover...................................................................... -$80,000 2. FIT-20 Indiana apportioned income percentage for the taxable year of the capital loss ..............................................................50% 3. Indiana net capital loss for carry forward (limited to succeeding five years) ......................................................................... -$40,000 Additional provisions required for a combined return: Any net capital loss or net operating loss attributable to Indiana in the combined return must be prorated between each member of the unitary group having nexus in Indiana. Each member must calculate its share of the capital loss and amount available to be applied for the combined return. The net capital loss attributable to Indiana in the combined return is prorated between each taxpayer member of the unitary group by the quotient of: a. The Indiana receipts of those taxpayer members attributable to Indiana, divided by; b. The total receipts of all taxpayer members to Indiana. Example Indiana receipts attributable to: Member’s ratio of Indiana receipts: Prorated share of Indiana net capital loss: Member A Member B Member C Combined Indiana Total $6,000,000 $9,600,000 $8,400,000 $24,000,000 25% 40% 35% 100% -$10,000 -$16,000 -$14,000 Carry forward these amounts separately on the combined return. Use this portion of the worksheet as many times as needed to determine the deductible net capital loss applied against any Indiana net capital gains during the five-year carryforward period following the year of a loss. Computation of Net Capital Loss Adjustment The net capital loss available to be applied, if any, and carried forward to any subsequent year shall be limited to the capital gains for the subsequent year of each taxpayer member. The amount of net capital gains is determined by the same receipts formula used in computing the amount of loss derived from Indiana and is prorated between members of a unitary group (IC 6-5.5-2-1). Example Gain Year Ending: 12-31-2018 4. Net capital gain from federal Schedule D (recomputed without any IRC Section 1212 unused capital loss carryover)..... $50,000 5. FIT-20 Indiana apportioned income percentage for the taxable year.............................................................................................. 60% 6. Available Indiana net capital gain for the year............................................................................................................................... $30,000 Example for members of a unitary group filing a combined return having a net capital gain in 2018: Indiana receipts attributable to: Member’s ratio of Indiana receipts: Prorated share of Indiana net capital gain: Member A Member B Member C Combined Indiana Total $5,000,000 $35,000,000 $10,000,000 $50,000,000 10% 70% 20% 100% $3,000 $21,000 $6,000 Application of Indiana Net Capital Loss Adjustment Enter the unused net capital loss from loss year (prorated amounts) or remaining amount(s) of each member as reduced during each of the intervening years following the year of loss. The current year adjustment for Indiana is limited to the unused amount of net capital loss, up to the amount of the net capital gains prorated for each member. Member A Member B Member C Amount of Loss Applied to (2018): $3,000 $16,000 $6,000 7. Combined total of Indiana net capital loss adjustment for the tax year. Carry to line 23 of Form FIT-20........................... $25,000 Note. This amount may be applied only up to the amount of the current year’s income tax liability. 8. Remaining share of taxable capital -0- $5,000 -0gain and (unused net capital loss): -$7,000 -0- -$8,000 (Share of carryover to 2018) 10 Summary of Total Indiana Net Capital Loss Carryover(s) Compile for each year the total amount of net capital loss applied against net capital gains. The gain or loss available is limited to the amount of each taxpayer member’s portion as apportioned to Indiana. For net capital loss carryovers from two or more years, show amounts applied through all carryforward years. Unused net capital loss from loss years occurring since 2012, after application against any net capital gains, may be carried through taxable year 2018. Combined total Indiana net capital gains for each year. Example of 2014 2015 2016 2017 carryover Enter below total Indiana $ $ $ net capital loss from $ loss year(s): Total amount of Indiana net capital loss applied against prorated net capital gains in each year 2018 $30,000 Carryover(s) of unused prorated net capital losses available for 2019 2016 -$40,000 -$25,000 -$15,000 Remaining taxable net capital gains $5,000 2012 -$ 2013 -$ 2014 -$ 2015 -$ Line 28. Nonresident Taxpayer Credit (816): To claim this credit, enclose a copy of the domiciliary state’s tax return. Nonresident taxpayers might be able to claim a credit for taxes paid to domiciliary states. To be eligible to claim the credit, the following conditions must be met: (1) the receipt of interest or other income from the loan is attributed to both the domiciliary state and also to Indiana; and (2) the principal amount of the loan is at least $2 million. Instructions for Schedule A, continued Line 24. Total Adjusted Gross Income: Subtract line 23 from line 22. If subtotal is less than zero, enter 0. Line 25. Indiana Net Operating Loss Deduction: The amount to report on this line is the Indiana portion of the net operating loss, and it cannot exceed the amount reported on line 24. Net operating losses can be carried forward for 15 years. There is no provision for net operating loss carrybacks. Complete and enclose Schedule FIT-20NOL with the return. To determine the amount of tax attributable to the loan transaction, divide the total receipts from qualified loans by the total receipts attributable to Indiana. Multiply that quotient, expressed as a percentage, by the total amount of tax due to determine the amount of tax attributable to the loan. This is the amount of credit that may be available. The actual credit is equal to the lesser of the actual taxes paid to the domiciliary state for the loan transaction and the amount due to Indiana on the loan transaction. If the taxpayer’s domiciliary state grants a credit for taxes paid to other states, the credit available for purposes of Indiana’s tax must be reduced by the amount of the credit granted by the taxpayer’s domiciliary state. (See the instructions for completing Schedule FIT-NRTC on page 19.) Line 26. Indiana Adjusted Gross Income: Subtract line 25 from line 24. Line 27. Indiana Financial Institution Tax Due: Multiply the amount on line 26 by the current tax rate. If line 26 is a loss amount, enter zero on this line. Financial institutions are subject to a FIT under IC 6-5.5 at the following declining rates: • For taxable years beginning after Dec. 31, 2018, and before Jan. 1, 2020 6.25%. • For taxable years beginning after Dec. 31, 2019, and before Jan. 1, 2021 6.0%. • For taxable years beginning after Dec. 31, 2020, and before Jan. 1, 2022 5.5%. • For taxable years beginning after Dec. 31, 2021, and before Jan. 1, 2023 5.0%. • For taxable years beginning after Dec. 31, 2022, 4.9%. Nonresident credits are determined for each taxpayer member of a unitary group on an individual basis, notwithstanding that the adjusted gross income is reported on a combined basis for all members of a unitary group. Line 29. Net Financial Institution Tax Due: Subtract the amount on line 28 from the amount on line 27. 11 Line 30. Use Tax Due: Taxpayers are required to report and pay 7% use tax on taxable purchases. Purchases subject to use tax include (but are not limited to) subscriptions to magazines and periodicals as well as property that is purchased exempt from tax and that is later converted to a nonexempt use by the business. To calculate the amount of purchases subject to the use tax, please complete the worksheet below. of years and applied against the state FIT. If one or more credits are available, apply the credits in the order that the credits would expire. Finally, use the credits that can be carried over and applied against the state FIT in another year. Example: Assume a taxpayer has a neighborhood assistance credit for which no carryover is available, a school scholarship credit that can be carried forward to 2023, and a community revitalization enhancement district credit with an indefinite carryforward. The taxpayer would apply the credits in the following order until the credit is exhausted or the taxpayer’s liability is reduced to zero, whichever comes first: • Neighborhood assistance credit • School scholarship credit expiring in 2023 • Community revitalization enhancement district credit For more information regarding use tax, visit the Department’s website at www.in.gov/dor or call (317) 232-0129. Line 31. Subtotal Due: Add line 29 and line 30. Tax Liability Credits — Limited to One Per Project Restriction for Certain Tax Credits – Limited to One Per Project Within a certain group of credits, a taxpayer may not be granted more than one credit for the same project. You can choose the credit to be applied. However, the credit selected cannot be changed nor can the investment be redirected for a different credit in subsequent years. See Income Tax Information Bulletin #59 at www.in.gov/dor/legal-resources/tax-library/informationbulletins/income-tax-information-bulletins/ for more information. Six credits are included in this group: 1) Alternative fuel vehicle manufacturer credit; 2) Community revitalization enhancement district credit; 3) Enterprise zone investment cost credit (not applicable to FIT-20); 4) Hoosier business investment credit; 5) Industrial recovery credit; and 6) Venture capital investment credit. For more information about Indiana tax credits, see Information Bulletin #59 available at www.in.gov/dor/legal-resources/taxlibrary/information-bulletins/income-tax-information-bulletins/. Line 32. Neighborhood Assistance Tax Credit 828 If you made a contribution or engaged in activities to upgrade areas in Indiana, you may be able to claim a credit for this assistance. Contact the Indiana Housing & Community Development Authority, Neighborhood Assistance Program, 30 S. Meridian, Suite 1000, Indianapolis, IN 46204, telephone number (317) 232-7777 (800- 872-0371 outside Indianapolis), for more information. Pass-through entities are eligible for the credit. Line 33. Enterprise Zone Employment Expense Tax Credit 812 This credit is based on qualified investments made within an Indiana enterprise zone. It is the lesser of 10% of qualifying wages or $1,500 per qualified employee, up to the amount of tax liability on income derived from an enterprise zone. Enclose the completed Schedule EZ 1, 2, 3 with the return, otherwise the credit will be denied. Order of Credit Application If claiming more than one credit, first use the credits that cannot be carried over and applied against the state FIT in another year. Next, use the credits that can be carried over for a limited number Sales/Use Tax Worksheet List all purchases made during the tax year from out-of-state companies. Column A Column B Description of personal property purchased from out-of-state retailer Column C Date of Purchase(s) Purchase Price Magazine subscriptions: Mail order purchases: Internet purchases: Other purchases: 1. Total purchase price of property subject to the sales/use tax.............................................................. 1 2. Sales/use tax: Multiply line 1 by .07 (7%)............................................................................................ 2 3. Sales tax previously paid on the above items (up to 7% per item)...................................................... 3 4. Total amount due: Subtract line 3 from line 2. Carry to Form FIT-20, line 30. If the amount is negative, enter zero and put no entry on line 30 of the FIT-20.............................................................................. 4 12 Line 38. Total Credits Add the amounts on lines 32 through 37. Find the Indiana Schedule EZ 1, 2, 3 at www.in.gov/dor/taxforms/enterprise-zone-forms/ for more information on how to calculate this credit. Line 39. Total Tax Due Subtract the amount on line 38 from the amount on line 31. Line 34. Enterprise Zone Loan Interest Tax Credit 814 This credit is allowed for up to 5% of the interest received from all qualified loans made during a tax year for use in an active Indiana enterprise zone. Line 40. Total Estimated Tax Paid Enter the total amount of estimated tax paid for the taxable year. Itemize each quarterly payment in the spaces provided. See Information Bulletin #66 available at www.in.gov/dor/ legal-resources/tax-library/information-bulletins/income-taxinformation-bulletins/ for more information on how to calculate this credit. Note. Schedule LIC must be enclosed if claiming this credit; it is available at www.in.gov/dor/tax-forms/enterprisezone-forms/. Contact the Indiana Economic Development Corporation at 1 N. Capitol Ave., Suite 700, Indianapolis, IN 46204; call them at (317) 232-8800; or visit the IEDC website at www.iedc.in.gov for additional information. List all members included in a combined return by completing FIT-20 Schedule H. Show any amount of estimated tax you are claiming that might have been paid by a member under the federal employer identification number. Line 41. Extension Payment and Prior Year Overpayment Enter on line (a) the payment made resulting from an extension of time to file request, and on line (b) list your carryover credit of a prior-year overpayment. This provision is applicable to a prioryear overpayment of the financial institution tax only. Indiana will accept the federal extension date, plus an additional 30 days. However, an extension of time to file is not an extension of time to pay. You must pay at least 90% of the current year liability by the original due date of the FIT return. Enter the total amount on line 41. Enclose Schedule LIC with the return, otherwise the credit will be denied. Note. Claimants must be in good standing to remain eligible for the enterprise zone loan interest credit. The term “zone business” includes an entity that claims certain tax benefits available to businesses located in an enterprise zone. A taxpayer can claim the enterprise zone loan interest credit only if that taxpayer pays a registration fee, provides additional assistance to urban enterprise associations required of zone businesses, and complies with the requirements adopted by the Indiana Economic Development Corporation. This credit is also not available for loans made after December 31, 2017. Line 42. Other Payments/Credits Enter any other payments that are allowable and enclose an explanation. Headquarters Relocation Credit (refundable portion). A business with annual worldwide revenue of $50 million, at least 75 employees, and which relocates its corporate headquarters to Indiana may be eligible for a credit. The credit may be as much as 50 percent of the cost incurred in relocating the headquarters. Generally, this credit is nonrefundable. Lines 35 and 36 — Other Tax Liability Credits Available to Financial Institutions Claim other allowable tax liability credits by entering the name, credit ID code number, and amount using line 35 or 36 (see page 15 for a list of credits available for these lines). The total nonrefundable tax liability credit is limited to the amount of income tax on line 29, unless otherwise noted. If your claim exceeds the amount of your tax liability, adjust by recalculating the credit to the amount that you can apply. If you qualify for the refundable Economic Development for a Growing Economy (EDGE) job retention credit, claim that credit on line 43. Beginning with the 2019 tax year, some or all of this credit may be refundable. This credit is administered by the Indiana Economic Development Corporation. If the IEDC has ruled some or all of this credit to be refundable, enter on this line the refundable amount of the credit less the portion of the credit used to offset your tax liability. You must maintain the documentation provided to you that supports the refundable portion of this credit as the department may request it. A detailed explanation or supporting schedule must be enclosed with the return when claiming any credits on lines 35, 36, 43, and 44. See Information Bulletin #59 available at www.in.gov/dor/ legal-resources/tax-library/information-bulletins/income-taxinformation-bulletins/ for more information about the Indiana tax credits available to taxpayers. For more information (including limitations on the credit and the application process), see Income Tax Information Bulletin #97, available at www.in.gov/dor/legal-resources/tax-library/ information-bulletins/income-tax-information-bulletins/. Line 43. Economic Development for a Growing Economy Credit (EDGE) Claim the approved Economic Development for a Growing Economy (EDGE) credit on this line. Enter the amount from line 19 of Schedule IN-EDGE here. This credit is for businesses that conduct certain activities designed to foster job creation in Indiana. It is a refundable tax liability credit. Line 37 — Certified Credits Available to Financial Institutions If you are claiming any credits on Schedule IN-OCC, including credits passed through from Schedule IN K-1 Part 2, enter the total of those credits here and enclose Schedule IN-OCC with you return. The credit codes reported on Schedule IN-OCC are 820, 835, 849, 858, 860, 863, 1820, 1835, 1849, 1858, 1860 and 1863. 13 Note. Complete Schedule IN-EDGE and enclose it with the return., otherwise the credit will be denied. Obtain a PIN from the IEDC. If a payment is made after the original due date, a penalty that is the greater of $5 or 10% of the remaining tax due must be entered. The penalty for late payment or late filing will not be imposed if all three of the following conditions are met: 1. A valid extension of time to file exists; 2. At least 90% of the tax was paid by the original due date; and 3. The remaining tax and interest due is paid by the extended due date. Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility requirements. Call (317) 232-8800 or visit www.iedc.in.gov for additional information. Line 44. Economic Development for a Growing Economy Retention Credit (EDGE-R) Claim the approved Economic Development for a Growing Economy Retention Credit on this line. Enter the amount from line 19 of Schedule IN-EDGE-R here. If the return showing no tax liability (on line 31) is filed late, the penalty for failure to file by the due date will be $10 for each day that the return is past due, up to a maximum of $250. Line 50. Total Due Add lines 46 through 49. If a payment is due, enter the total tax due plus any applicable penalty and interest. Make checks payable to the Indiana Department of Revenue for each Form FIT-20 filed. All payments must be made in U.S. funds. This credit is for businesses that conduct certain activities designed to foster job retention in Indiana. It is a refundable tax liability credit. The aggregate amount of credits awarded for projects to retain existing jobs in Indiana is capped at $10 million per year. Note. Complete Schedule IN-EDGE-R and enclose it with the return, otherwise the credit will be denied. Obtain a PIN from the IEDC. Lines 51, 52, and 53. Total Overpayment If the taxpayer has an overpayment determined by subtracting the amounts on lines 39, 47, and 49 from the amount on line 45, the corporation can elect to have a portion or all of its overpayment credited to following year’s estimated tax account. The portion to be refunded should be entered on line 52, and the portion to be applied to next year’s account should be entered on line 53. The total of line 52 and line 53 must equal the amount on line 51. Contact the Indiana Economic Development Corporation at One North Capitol, Suite 700, Indianapolis, IN 46204, for eligibility requirements. Visit www.iedc.in.gov for additional information. Line 45. Total Payments Add lines 40 through 44. An election to apply an overpayment to the following year is irrevocable. If your overpayment is reduced due to an error on the return or an adjustment by the Department, the amount to be refunded will be corrected before any changes are made to the estimated account for next year. A refund may be set off and applied to other liabilities under IC 6-8.1-9-2(a) and 6-8.1-9.5 before it is credited to the following year’s estimated tax account. Line 46. Balance of Tax Due Subtract line 45 from line 39. Line 47. Penalty for Underpayment Enter the penalty, if any, for underpayment of estimated tax. Complete and enclose Schedule FIT-2220 to determine if the underpayment of estimated tax penalty or an exception to the penalty applies. Certification of Signatures and Authorization Section Note. If a taxpayer’s annual liability exceeds $2,500, filing quarterly estimated payments to remit 25% of the estimated annual tax liability is required. Sign, date, and print the corporation name on the return. If a paid preparer completes the return, authorize the Department to discuss the tax return with the preparer by checking the authorization box above the line for the name of the personal representative. Line 48. Interest If payment is made after the original due date, interest must be included with the payment. Interest is calculated from the original due date of the return until the date of payment. Personal Representative Information Typically, the Department contacts the corporation if there are any questions or concerns about the tax return. If the Department is authorized to discuss the tax return with someone else (e.g., the person who prepared it or a designated person), complete this area. For the current rate of interest charged see Departmental Notice #3 available at www.in.gov/dor/legal-resources/tax-library/ departmental-notices/, or contact the Department by calling (317) 232-0129. An extension of time to file the return does not grant an extension of time to pay any tax due; therefore, interest must be calculated. First, check the “Yes” box that follows the sentence “I authorize the Department to discuss my tax return with my personal representative.” Line 49. Late Penalty Enter the computed penalty amount that applies. 14 Next, enter: • The name of the individual designated as the corporation’s personal representative; and • The individual’s email address. The following credits are available to financial institutions. If this area is completed, the Department is authorized to contact the personal representative, instead of the corporation, about this tax return. After the return is filed, the Department will communicate primarily with the designated personal representative on matters concerning the return. This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. Note. The authorization for the Department to be in contact with a personal representative can be revoked at any time. To do so, submit a signed statement to the Department. The statement must include a name, Federal Employer Identification Number of the corporation, and the year of the tax return. Mail the statement to Indiana Department of Revenue, P.O. Box 7206, Indianapolis, IN 46207-7206. Blended Biodiesel Credits 803 Alternative Fuel Vehicle Manufacturer Credit 845 Note. See the section “Restriction for Certain Tax Credits Limited to One per Project” on page 12. This credit has been repealed. However, any previously approved yet unused credit is available to be claimed. Coal Gasification Technology Investment Credit 806 A credit is available for a qualified investment in an integrated coal gasification power plant or fluidized bed combustion technology. It must serve Indiana gas utility and electric utility consumers to qualify. This can include an investment in a facility located in Indiana that converts coal into synthesis gas that can be used as a substitute for natural gas. Officer Information An officer of the organization must sign and date the tax return and enter the officer’s name and title. Please provide a daytime telephone number the Department can call if there are any questions about the tax return. Also, provide an email address if contact via email is desired. You must file an application for certification with the IEDC. If the credit is assigned, it must be approved by the utility regulatory commission and taken in 10 annual installments. The amount of credit for a coal gasification power plant is 10% of the first $500 million invested and 5% for any amount over that. The amount of credit for a fluidized bed combustion technology is 7% of the first $500 million invested and 3% for any amount over that. Paid Preparer Information Fill out this area if a paid preparer completed this tax return. The paid preparer must sign and date the return. In addition, please enter the following: • The paid preparer’s email address; • The name of the firm the paid preparer is employed by; • The paid preparer’s PTIN (personal tax identification number). This must be the paid preparer’s PTIN; do not enter an FEIN or Social Security number; • The paid preparer’s complete address. For more information, visit the Indiana Economic Development Corporation’s website at www.iedc.in.gov or contact them at One North Capitol, Suite 700, Indianapolis, IN 46204. Or, see Information Bulletin #99 available at www.in.gov/dor/ legal-resources/tax-library/information-bulletins/income-taxinformation-bulletins/. Note. Complete this area even if the paid preparer is the same individual designated as the personal representative. Enclose a copy of the utility regulatory commission’s determination and the certificate of compliance issued by IEDC with the return, otherwise the credit will be denied. Mailing Options Please mail completed returns to: Indiana Department of Revenue P.O. Box 7228 Indianapolis, IN 46207-7228 Community Revitalization Enhancement District Credit 808 A state and local income tax liability credit is available for a qualified investment for the redevelopment or rehabilitation of property within a community revitalization enhancement district. To be eligible for the credit, the intended expenditure plan must be approved by the IEDC before the expenditure is made. The credit is equal to 25% of the IEDC-approved qualified investment made by the taxpayer during the tax year. The Department has the authority to disallow any credit if the taxpayer: • Ceases existing operations; • Substantially reduces its operations within the district or elsewhere in Indiana; or • Reduces other Indiana operations to relocate them into the district. 15 Important. If the IEDC has granted a refundable credit under the second test, see the instructions on page 13 for completing Form IT-20FIT, Line 42. The taxpayer can assign
More about the Indiana FIT-20 Booklet Corporate Income Tax Tax Return TY 2020
We last updated the Current Year Financial Institution Tax Forms & Instruction Booklet in August 2021, so this is the latest version of FIT-20 Booklet, fully updated for tax year 2020. You can download or print current or past-year PDFs of FIT-20 Booklet directly from TaxFormFinder. You can print other Indiana tax forms here.
Related Indiana Corporate Income Tax Forms:
|Form Code||Form Name|
|FIT-20 Form||Current Year Financial Institution Tax Forms and Schedules|
Indiana usually releases forms for the current tax year between January and April. We last updated Indiana FIT-20 Booklet from the Department of Revenue in August 2021.
FIT-20 Booklet is an Indiana Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Indiana FIT-20 Booklet
We have a total of ten past-year versions of FIT-20 Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Indiana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.