Indiana Current Year Partnership Return Booklet with Forms and Schedules
Extracted from PDF file 2019-indiana-it-65-booklet.pdf, last modified December 2019
Current Year Partnership Return Booklet with Forms and SchedulesINDIANA 2 0 1 IT-65 Partnership Return Booklet ZZZLQWD[LQJRY Indiana businesses must report and pay sales and withholding taxes electronically ALL businesses in Indiana must file and pay their sales and withholding taxes electronically. Businesses currently filing paper coupons will need to transition to filing via the state’s INtax program or use a third-party vendor to electronically transmit forms ST-103 and WH-1. This is required by Indiana law. Did you know? • Service providers can also use INtax. • We offer a range of sophisticated tutorials to help you learn how to use INtax. • We have a special hotline for questions specifically related to INtax. Call (317) 232-2337. To learn more and get started, visit www.intax.in.gov. INBiz: Your One-Stop Source for your Business INBiz is the state of Indiana’s one-stop resource for registering and managing your business and ensuring it complies with state laws and regulations. Visit this best-in-class portal at www.inbiz.in.gov 2 SP 262 (R22 / 12-19) Indiana Department of Revenue 2019 IT-65 Indiana Partnership Return Booklet What’s New for 2019 Add-backs • Online File and Pay Available through INTIME INTIME, Indiana’s new online tax portal was available for Corporate Customers as of September 3, 2019. INTIME provides the following functionality to customers: • Make payments using a bank account or credit card • View and respond to correspondence from DOR • Request and print return transcripts on-demand • Electronic delivery of correspondence • Online customer service support through secure messaging • Updates have been made to the Bonus Depreciation and Section 179 Expense add-back instructions. See page 8 for more information. The wagering taxes required to be added back as a tax based on or measured by income is being phased out. See page 8 for more information. Credits • • 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: • Gain access to view and manage multiple customers under one login • Ability to file returns, make payments, and view file and pay history for clients • Request electronic power of attorney (ePOA) authorization to view customer accounts • View and respond to correspondence for clients • Secured messaging • • Alternative Fuel Vehicle Manufacturer Tax Credit. This credit has been repealed. Any previously approved yet unused credit is available to be claimed. Headquarters Relocation Credit. Some or all of this credit may be refundable to the owners. See instructions on page 18 for more information. Industrial Recovery Credit. The timeline for claiming this credit has changed. See page 19 for more information. School Scholarship Tax Credit Contribution Ceiling Increased. The total of allowable net contributions to the program has increased to $15 million for the program’s fiscal year of July 1, 2019 through June 30, 2020. School Scholarship Tax Credit Contribution Ceiling Increased The total of allowable net contributions to the program has increased. See page 19 for more information. References to the Internal Revenue Code Public Law (PL) 234-2019, Sec. 8, 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, 2019. For a complete summary of new legislation regarding taxation, please see the Synopsis of 2019 Legislation Affecting the Indiana Department of Revenue at www.in.gov/dor/3656.htm. Industrial Recovery Credit Update The eligibility process for claiming the credit has been modified. See instructions on page 20 for more information. 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 2020. Event details will be listed at www.in.gov/dor/4877.htm. Please come and share feedback or comments about how the department can better administer Indiana tax laws. If not able to attend, please submit feedback or comments in writing to: Indiana Department of Revenue, Commissioner’s Office, MS# 101, 100 N. Senate Avenue, Indianapolis, IN 46204. Schedule IN K-1 Electronic Filing Requirement Beginning with tax years ending after Dec. 31, 2019 (tax year 2019 fiscal year filers), a taxpayer that is required to file twenty-five or more Schedule IN K-1’s must file them in an electronic format. For taxpayers filing on a calendar year basis, this electronic filing requirement begins with tax year 2020. Our homepage provides access to forms, information bulletins and directives, tax publications, email, and various filing options. Visit www.in.gov/dor. Schedule E Update Treatment of certain receipts, including those includable under IRC 965/951A that are treated as a foreign source dividend, are treated differently. See page 14 for information about this and additional updates. Who Must File and When Partnerships conducting business within Indiana must file an annual return (Form IT-65) and information returns (Schedule IN K-1) with the Department of Revenue. These forms must disclose each partner’s distributive share of the partnership income distributed or undistributed. These forms are due on or before the 15th day of the 4th month following the close of the partnership’s tax year. Schedule Composite Update Nonresident partners will need to file Form IT-40PNR if county tax is withheld for them on Schedule Composite. See page 16 for more information. 3 How to Determine the Tax Rate for Calendar-Year, Fiscal-Year, Short-period, and 52-53 Week tax year Taxpayers Enclose with Form IT-65 the first five pages of the U.S. Partnership Return of Income, Form 1065 or 1065B. Also enclose Schedule M-3. Federal Schedules K-1s should not be enclosed but must be made available for inspection upon request by the department. Any partnership doing business in Indiana or deriving gross income from sources within Indiana is required to file a return. In addition, any partnership that has partners residing in Indiana is required to file a return, even if the partnership is not doing business in Indiana. For Indiana adjusted gross income (AGI) tax purposes, the term doing business generally means the operation of any business enterprise or activity in Indiana, including but not limited to the following: • • • • • • • • Pursuant to IC 6-3-2-1(c), the following steps must be used to determine the tax rate if a taxpayer is subject to different tax rates for a taxable period: • Multiply the tax rate in effect on June 30 of the taxable period by the number of days in the taxpayer’s taxable period that occurred before July 1 of the taxable year. • Multiply the tax rate in effect on July 1 of the taxable period by the number of days in the taxpayer’s taxable period that occurred after June 30 of the taxable year. • Add the amounts in Step 1 and Step 2, and then divide the sum by the total number of days in the taxpayer’s taxable year. • Round the rate determined in Step 3 to the nearest 0.01%. The maintenance of an office, a warehouse, a construction site, or another place of business in Indiana; The maintenance of an inventory of merchandise or material for sale, distribution, or manufacture, or consigned goods; The sale or distribution of merchandise to customers directly from company-owned or -operated vehicles when the title of merchandise is transferred from the seller or distributor to the customer at the time of sale or distribution; The rendering of a service to customers in Indiana; The ownership, rental, or operation of a business or property (real or personal) in Indiana; The acceptance of orders in Indiana with no right of approval or rejection in another state; Interstate transportation; or The maintenance of a public utility. General Filing Instructions Liability of the Partnership Partnerships as entities are not subject to income taxes. However, publicly traded partnerships treated as corporations pursuant to IRC Section 7704 are classified for Indiana tax purposes in the same manner as they are classified for federal tax purposes. A limited liability company classified as a corporation for federal tax purposes should file Form IT-20. The term “partnership” includes a syndicate, group, pool, joint venture, limited liability company, limited liability partnership, or other unincorporated organization that is not, within the meaning of Indiana Code (IC) 6-3-1, a corporation, a trust, or an estate. Banks with common trust funds filing U.S. Form 1065 must file partnership Form IT-65 and comply with the provisions of Treas. Reg. 1.6032-1 when reporting for Indiana purposes. Partnerships are considered to be the taxpayer with respect to the payment of amounts required to be withheld at source. See the section titled “Withholding Tax Liabilities of Partnerships.” Partnerships are subject to use tax. Use tax is due on the storage, use, or consumption of tangible personal property purchased in a transaction in Indiana or elsewhere. This does not apply if the transaction is exempt from the sales and use tax by law or the sales tax due and paid on the transaction equals the use tax due. Calculating Corporate Income Tax Rate The corporate AGI tax rate is as follows: See the instructions for the Sales/Use Tax Worksheet on page 9. After June 30, 2018, and before July 1, 2019................................... 5.75% After June 30, 2019, and before July 1, 2020................................... 5.5% After June 30, 2020, and before July 1, 2021................................... 5.25% After June 30, 2021............................................................................. 4.9% An apportionment schedule must be enclosed with the return if the partnership is doing business both within and outside Indiana and has any partners not domiciled in Indiana. See the instructions for Schedule E Apportionment of Income for Indiana on page 14. Any partnership that has nonresident partners must also file a composite return for all its nonresidents. Any partnership that fails to file a composite return that includes all its nonresident partners will be assessed a penalty of $500. How to Determine the Tax Rate For taxpayers whose taxable year begins when one rate is in effect and the taxable year ends when a different rate is in effect, compute the tax as provided below. This includes calendar-year taxpayers, fiscal-year taxpayers, short-period taxpayers, and 52-53 week tax year taxpayers. However, if your taxable year begins and ends during a period when the same rate is in effect (for instance, a fiscal year from July 1, 2018 to June 30, 2019), no proration is necessary. To avoid penalty and interest charges for delinquent filing of returns, a partnership should verify its tax status and withholding responsibilities before commencing business in Indiana. Withholding Tax Liabilities of Partnerships The following instances obligate the partnership to register with the department and become an Indiana withholding agent on behalf of each of the following. 4 Withholding on Employees All withholding monies will be remitted with Form IT-6WTH, and credit for the withholding/composite tax will be reflected on Schedule IN K-1 for each partner. Form IT-6WTH is available by calling the Corporate Tax section at (317) 232-0129. Payments for Form IT6WTH also may be made electronically. For further information, consult Income Tax Information Bulletin #72, which is available at www.in.gov/dor/3618.htm. Partnerships making payments of salaries, wages, tips, fees, bonuses, and commissions that are subject to Indiana state and/or county income taxes and are required by the IRC to withhold federal taxes on those types of payments are also required to withhold for Indiana tax purposes. Withholding on the compensation of nonresident team members of certain professional sports organizations is based on duty days performed in Indiana. Refer to Income Tax Information Bulletin #88 (www.in.gov/dor/3650.htm). If an employee resides in a state that has a reciprocal agreement with Indiana, the employee is exempt from Indiana state income tax but is subject to the relevant county tax. A partnership with an employee withholding liability must register as an Indiana withholding agent. The department assigns an Indiana Taxpayer Identification Number (TID). Individual Partners – A partnership must withhold state adjusted gross income (AGI) tax at the individual income tax rate on the apportioned distributive shares of partnership income (on currentyear earnings derived from Indiana sources) and any other guaranteed payments attributable to Indiana. It must do this each time it pays or credits any of its nonresident partners and part-year resident individual partners. The withholding rate for individuals is 3.23% (.0323). The withholding requirement does not apply to individual partners who are residents of reverse credit states and who are subject to and pay income taxes at rates equal to or greater than Indiana’s individual income tax rate to the resident states. The relevant reverse credit states are: • Arizona; • Oregon; and • Washington, D.C. The partnership has two options in registering as a withholding agent: • Register with the department online using INBiz (www.inbiz.in.gov); or • Visit either the department’s downtown Indianapolis office or one of the district offices located throughout the state to use the department’s kiosks to register online. Payments of amounts withheld must be remitted to the department via electronic method by the due date. If a filing and/or payment of the proper amount of tax withheld is not made by the due date, penalty and interest will be added. A person responsible for remitting payments may be personally subject to criminal prosecution if the failure to pay and/or file a withholding return is due to fraud or tax evasion. Effective Jan. 1, 2013, all entities are required to remit withholding statements electronically by using either a third-party vendor or INtax. The INtax application is Indiana’s free online tool for managing business tax obligations. A partnership must withhold county income tax at the county’s relevant tax rate on each Indiana nonresident partner whose principal place of business or employment on January 1 is located in an Indiana county. See Schedule CT-40, page 2, at www.in.gov/dor/6281.htm to get the county’s tax rate. Trusts and Estates – A partnership must withhold on the amount it pays or credits for the partner’s distributive share derived from Indiana sources for partners that are trusts and estates not domiciled in Indiana. This amount must reflect the ultimate tax liability due Indiana by the respective member or beneficiary because of the partnership’s activities. Withholding on Partners A partnership must withhold state income tax at the appropriate income tax rate on the amount it pays or credits to any of its nonresident partners on the partner’s distributive share of the partnership’s income derived from Indiana sources regardless of whether distributions of property are made to partner and regardless of what of activities the partners may have in Indiana. All withholding will be remitted by using Form IT-6WTH. If a partnership fails to withhold, it will be assessed a penalty. This penalty is 20% plus interest, in addition to the amount withheld or required to be withheld and paid to the department. If a distribution to nonresident partners is made with property other than money, or a gain is realized without the payment of money, the partnership may not release the property or credit the gain until it has funds sufficient to pay the withholding tax due. Note: The withholding provisions do not apply to nonresident partners who are nontaxable trust or estate entities. A partnership must withhold tax on the amount it pays or credits for the partner’s distributive share derived from Indiana sources to a fiduciary. Then the trust or estate must also withhold state income taxes for all its nonresident beneficiaries. Corporate Partners – Partnerships must withhold AGI tax at the corporate tax rate on the amount it pays or credits for the partner’s distributive share derived from Indiana sources to all nonresident corporate partners. This withholding must be an amount reflecting the ultimate Indiana tax liability due by respective partners because of the partnership’s activities. IC 6-3-4-12 provides that all nonresident partners’ distributive shares must be included in a composite return schedule, and the partnership must continue to withhold Indiana adjusted gross income tax for all nonresident partners. There is no provision for a partner to “opt out” of composite filing. Each nonresident partner’s composite tax is calculated at the relevant tax rate. The department has streamlined the procedure for making withholding payments for nonresidents. A corporation is subject to AGI tax at the current rate. See page 3 for the current tax rate and instructions on how to compute the rate. 5 A partnership must withhold and remit the Indiana Financial Institution Tax (FIT) if: • The partnership conducts the business of a financial institution; • The partnership has nonresident corporate partners; and • The partners conduct the business of a financial institution. If a federal extension is not needed, a partnership can request a separate Indiana extension of time to file by writing to Indiana Department of Revenue, Corporate Income Tax, Tax Administration, P.O. Box 7206, Indianapolis, IN 46207-7206. Extensions are applicable to the time for filing the return only and not to any tax liability due. Any payments made after the original due date must include penalty and interest. FIT must be withheld on the respective nonresident corporate partner’s share of partnership income as computed under IC 6-5.5-4. However, if a written declaration that the partner is not subject to the FIT exists, the FIT withholding is not required. Instead, corporate AGI tax must be withheld from the nonresident corporate partner’s distributive share of income apportioned to Indiana. Amended Returns Both the partnership and the partners must file amended Indiana returns within 180 days after the filing of the amended federal return if: • The partnership files an amended federal return; and • The change(s) affects the Indiana income or the taxable income reportable by the partners. Withholding Amounts on Tiered Partnerships/S Corporations A partnership must withhold state income tax at the individual income tax rate on the apportioned distributive shares of partnership income (on current-year earnings derived from Indiana sources) paid or credited to another nonresident partnership or nonresident S corporation. It must do this each time it pays or credits any of its nonresident partners or nonresident S corporations. An adjustment made by the Internal Revenue Service affecting the reportable Indiana income must be reported to Indiana with an amended partnership return. This must be done within 180 days after the adjustment becomes final. Note: Partners not domiciled in Indiana must meet annual filing requirements and remit all unpaid tax, penalties, and interest. Check the box at the top of Form IT-65 if filing an amended return. Accounting Periods and Methods Instructions for Completing Form IT-65 The accounting periods for Form IT-65 and the method of accounting adopted must be the same as used for federal income tax purposes. Filing Period and Identification Use Form IT-65 to file: • A 2019 partnership return for a tax year ending on Dec. 31, 2019; • A short tax year beginning and ending in 2019; or • A fiscal year beginning in 2019 and ending in 2020. Composite Withholding Payments (Form IT-6WTH) A partnership that files a composite return must withhold Indiana state and/or county income taxes from all nonresident partners into the corporate account using Form IT-6WTH. Payment is due the 15th day of the 4th month following the close of the partnership’s tax period. To make additional payments, please contact the Corporate Tax Section at (317) 232-0129 for an additional Form IT-6WTH. Payments for form IT-6WTH also may be made electronically. Check our website for updates. For further information, consult Income Tax Information Bulletin #72 available at www.in.gov/dor/3650.htm and www.in.gov/dor. The total payments are claimed as a credit on line 9 of Form IT-65. For a fiscal or short tax year, fill in both the beginning month, day, and year and the ending month, day, and year at the top of the form. Identification Section Check the box at the top of the form if filing an amended return. For a name change, check the box at the top of the return. The copies of amended articles filed with the Indiana Secretary of State must be enclosed. Extended Filing Due Date The federal identification number (FID) shown in the box at the upper-right corner of the return must be the same as the number used on the U.S. Return of Partnership Income. Please use the correct legal name of the partnership and its current mailing address. The initial due date for filing is the 15th day of the 4th month following the close of the partnership’s tax year. The department accepts the federal extension of time application (Form 7004) or the federal electronic extension. If a taxpayer has an extension, 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 form are considered timely filed. County Code Number. List the two-digit county code number of the county in Indiana where the partnership has a primary business location. See Departmental Notice #1 located at www.in.gov/dor/reference/files/dn01.pdf for a list of the county code numbers. Enter “00” (two zeroes) in the county box located to the immediate right of the number and street if the partnership address lies outside of Indiana. Do not file a separate copy of the federal extension form with the department to request an Indiana extension at the time of requesting the extension. Instead, enclose a copy of the federal extension of time with the state return filing and check the box to question Q on the front of Form IT-65. 6 Line 1. Enter the amount from the U.S. partnership return Schedule K: • Net ordinary business income; • Net income from real estate activities from Form 8825; • Other rental income activities; • Portfolio income and deductions; • Royalties; • Capital gains and losses; • Guaranteed payments; and • Other income. For foreign addresses, please note the following: • The name of the city, town, or village in the box labeled City; • The name of the state or province in the box labeled State; and • The postal code and the 2-digit country code in the box labeled Zip Code. Enter the principal business activity code, from the North American Industry Classification System (NAICS), in the designated block of the return. Use the six-digit activity code reported on the federal partnership income tax return. Total net income (loss) from Schedule K, line 1 through line 11 less line 12, and a portion of line 13 related to investment income (see instructions below). Questions K through U and Other Fill-in Lines All partnerships filing an Indiana partnership income tax return must complete the top portion of the form. This includes questions K through U. Check or complete all the boxes that apply to the return: K. Indicate the date and place the partnership was organized. L. Indicate the partnership’s state of commercial domicile. M. Indicate the year the initial Indiana return was filed. N. Indicate the accounting method used. O. Check the “final return” box only if the partnership is dissolved, liquidated, or has withdrawn from the state. In the event of bankruptcy, Form BC-100 must be timely filed to close out any sales and withholding accounts. Go to www.in.gov/dor/3731.htm to complete this form online. -Select the Composite Return box if filing a composite return for nonresident partners. -Submit a Schedule Composite for nonresident individual/ non-corporate entities or a Schedule Composite-COR for corporate entities domiciled outside of Indiana. P. Enter the total number of partners in the partnership in field one of question P. Enter in the number of all partners who are nonresidents of Indiana in field two of question P. Q. Check the box if the partnership has a valid extension of time or an electronic federal extension of time to file the return. If applicable, enclose a copy of federal Form 7004 when filing the state return. R. Check the box if this is a limited liability company electing partnership treatment on the federal return. S. Check the box if this partnership is a member of any other partnership. T. Check this box if income is reported from disregarded entities. If this box is checked, please enclose a list of the disregarded entities with the return. U. Check this box if claiming a qualified research expense credit and attach the supporting schedule. The Section 179 deduction and that portion of investment expenses included in federal Schedule K, part of line 12, and line 17 relating to investment portfolio (royalty) income, flowing through to federal Schedule E, may be tentatively deducted. Do not deduct other expenses treated as federal itemized deductions. Use the Worksheet for Partnership Distributive Share Income, Deductions, and Credits to help you calculate this figure. The income worksheet must be used if this partnership received any distributive income from one of the following: • An owned partnership interest; • An estate; or • A trust. See the worksheet and instructions on page 12. If filing federal Form 1065B by an electing large partnership, use the amounts from line 1 through 8 of Schedule K. Convert distributive share of income items into a Form 1065 Schedule K format. Carry the figures to Form IT-65 and Schedule IN K-1. Required Indiana State Modifications - Lines 2a through 2d Lines 2a through 2c. Enter any add-backs here. Enter the name of the add-back, its 3-digit code, and its amount. Use a negative sign for negative amounts (-). Attach additional sheets if necessary. 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. 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. Aggregate Partnership Distributive Share Income Note: Round all entries to the nearest whole dollar amount and do not use a comma in dollar amounts of four digits or more. For example, instead of entering “3,455” enter “3455.” 7 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 add-back until the end of the 15-year recovery period. Information Bulletin #118 (www.in.gov/dor/3650.htm) explains the required modification on the allowance of depreciation for state tax purposes. New. 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/3650.htm for additional information. 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 add-back on the 2023 state tax return. Add-back for Section 179 Expense Excess (3-digit code: 105) – 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. The following add-backs and deductions should be entered on lines 2a through 2d. Add-back for Certain Taxes Deducted from Federal AGI (3-digit code: 100) – The add-back of all state taxes based on or measured by income, levied by any state, deducted on the federal return. 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. Wagering taxes. The portion of wagering taxes required to be added back as a tax based on or measured by income is being reduced (phased out) each year for eight years. The percentage of taxes required to be added back is determined by the first date of the taxpayer’s taxable year, and is determined as follows: 2019 – 87.5% ; 2020 – 75%; 2021 – 62.5%; 2022 – 50%; 2023 – 37.5% 2024 – 25.0%; 2025 – 12.5%; 2026 and later – no add back required 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. For example, Casino X remits $10,000,000 in riverboat wagering taxes in 2019. Individual owns 10% of Casino X. Individual’s share of Casino X’s income taxes is $1,000,000. Instead of individual adding back the full $1,000,000, Individual will add back $875,000. New. 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/3650.htm for additional information. Note. Income, losses and/or expenses from other schedules and forms may flow through to federal Schedules C, E and F. For example, partnership income from federal Schedule K-1 (Form 1065) may be included on federal Schedule E, while expenses from federal Form 8829 may be included on federal Schedule C. Make sure to check these schedules and forms for any deduction that needs to be added back. Deduction for Interest on U.S. Government Obligations (3-digit code: 610) – Deduct interest income, less related expenses, from certain obligations of the U.S. government included as income on the federal return. See Income Tax Information Bulletin #19 available at www.in.gov/dor/3650.htm for a list of eligible items. Add-back for Bonus Depreciation (3-digit code: 104) – An amount attributable to bonus depreciation in excess of any regular depreciation that would be allowed if an election under Internal Revenue Code (IRC) Section 168(k) had not been made as applied to property in the year that it was placed into service. Taxpayers that own property for which additional first-year special depreciation for qualified property was allowed in the current taxable year or in an earlier taxable year must add or subtract an amount necessary to make the AGI equal the amount computed without applying any bonus depreciation. The first-year special depreciation includes 100% bonus depreciation. The subsequent depreciation allowance must be calculated on the state’s stepped-up basis until the property is disposed. Enclose a statement to explain the adjustment. Add-back for Deferral of Business Indebtedness Discharge and Reacquisition (3-digit code: 107) – Add back the deduction for deferral of business indebtedness discharge and reacquisition. Enter an amount equal to the amount claimed as a deferral of income arising from business indebtedness discharged in connection with the reacquisition after Dec. 31, 2008, and before Jan. 1, 2011, of an applicable debt instrument (as provided in Section 108(i) of the IRC), for federal income tax purposes. If a deferred amount was added back previously, deduct the amount of deferred income recognized for federal purposes in the current period. 8 Add-back of OOS Municipal Obligation Interest (3-digit code: 137) – Interest earned from a direct obligation of a state or political subdivision other than Indiana (out of state, or OOS) is taxable by Indiana if the obligation is acquired after Dec. 31, 2011. Interest earned from obligations held or acquired before Jan. 1, 2012, is not subject to Indiana income tax and should not be reported as an add-back. Note: Individuals or entities that have purchased Hoosier Lottery prizes from a winning ticket holder for valuable consideration are not eligible for this deduction. Infrastructure Fund Gift Deduction (3-digit code: 631) - Shareholders or partners may be eligible to claim a deduction if a contribution has been made to a regional development infrastructure fund. Record the amount on lines 19 – 23 of the IN K-1. Note: Interest earned from obligations of Puerto Rico, Guam, Virgin Islands, American Samoa, or Northern Mariana is not included in federal gross income and is exempt under federal law. There is no addback for interest earned on these obligations. For more information, see Information Bulletin #19 available at www.in.gov/dor/3650.htm. Filers should keep detailed records of the contribution as the department can ask filers to provide this information at a later date. Line 2d. Enter the total amount of add-backs and subtractions from any additional sheets. If more than five modifications are needed, attach additional sheets detailing them. Total the amounts from the additional sheets and enter the total here (use a negative sign to denote a negative amount). Federal Repatriated Dividend Deduction Add-Back (3-digit code: 139) - Add back the deduction taken on the IRC Transition Tax Statement, Line 3 using code 139. Report the addback to the beneficiaries using code 139 on Schedule IN K-1. For nonresident individuals, include only the apportioned amount of the addback. Line 3. Add lines 1 through 2d. Apportionment of Income Partnerships deriving income from sources within and outside Indiana and having non-Indiana-domiciled partners or non-unitary corporate partners must complete line 4. Excess Federal Interest Deduction Modification (3-digit code: 142) - IRC Section 163(j) limits the federal interest deduction for most business interest to 30% of adjusted taxable income plus business interest. However, Indiana decoupled from this provision. Subtract an amount equal to the amount disallowed as a federal deduction for excess business interest in the year in which the interest was first paid or accrued. Add back any amount of excess taxable income (as defined in IRC Section 163(j)(4)(C)) determined at the entity level. Line 4. Enter the Indiana apportionment percentage if the partnership has any multistate business activities. If apportioning income, enter the Indiana percentage (rounded to two decimal places) from line 9 of Schedule E, Apportionment of Income for Indiana. Do not enter 100%. Indiana Lottery Winnings Annuity Deduction (3-digit code: 629) - If a taxpayer receives proceeds from a winning Hoosier Lottery ticket for a lottery held prior to July 1, 2002, those proceeds may be deducted from the taxpayer’s Indiana adjusted gross income. This deduction applies only to prizes won from the Hoosier Lottery Commission; proceeds from other state lotteries or from other gambling sources, such as casinos, are not deductible. In addition, proceeds from winning Hoosier Lottery tickets for lotteries held after June 30, 2002, are not deductible. Before continuing to lines 5 through 16, complete Schedule IN K-1 for each partner. 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 IT-65, line 5. If the amount is negative, enter zero and put no entry on line 5 of Form IT-65........................................................................................................... 4 9 Summary of Calculations for Form IT-65 Sales/Use Tax Worksheet - IC 6-2.5-3-2 imposes a use tax on the use, storage, or consumption of tangible personal property in Indiana that was purchased or rented in a retail transaction, wherever located, and sales tax was not paid. This rate is 7%. Examples of taxable items include: • Magazine subscriptions; • Office supplies; • Electronic components; and • Rental equipment. Line 11. Enter the amount of Economic Development for a Growing Economy (EDGE) credit being claimed from line 19 of Schedule IN-EDGE if not passing through to partners on Schedule IN K-1. Complete Schedule IN-EDGE and enclose it with the return. Otherwise, this credit will be denied. Line 12. Enter the amount of EDGE-R credit being claimed from line 19 of Schedule IN-EDGE-R if not passing through to partners on Schedule IN K-1. Complete Schedule IN-EDGE-R and enclose it with the return. Otherwise, this credit will be denied. Note: A registered retail sales merchant or out-of-state use tax agent for Indiana must report nonexempt purchases used in the Indiana business. This is reported on Form ST-103, Indiana Annual, or Monthly Sales and Use Tax Voucher. If use tax is not paid by the original due date of the return, interest will be added to the amount due. A 10% penalty or $5, whichever is greater, is charged on each unpaid use tax liability. Line 13. Enter the total amount of credits claimed from Schedule IN-OCC, and enclose Schedule IN-OCC with the return. Otherwise, these credits will be denied. If filing this schedule with Form IT-65, only reflect the credit amounts from Schedule IN K-1s on behalf of the entity’s partners who are included on the composite return. Do not include credits from the IN K-1s that belong to partners who are not included on the composite return. Enter the combined pro rata credits on one line of the IN-OCC; do not enter a line for each composite member. The total amount of credit for the members on the composite return cannot exceed the entity’s total tax due. In addition, sales and use tax cannot be offset by these nonrefundable credits if included in the total tax due. If an individual income tax return is being filed for a nonresident member included on the Schedule Composite, the nonresident member should use the 4-digit code provided on Schedule IN K-1, not the 3 digit code utilized on the pass-through entity’s income tax return. Caution: Do not report totals from Form ST-103 on this worksheet or on Form IT-65. Line 14. Subtract lines 8 through13 from line 7. If a balance due remains, proceed to lines 15 through 17. Line 5. Enter the use tax due from the Sales/Use Tax worksheet located on page 9. Line 15. Enter the total interest due. Any property purchased free of tax by use of an exemption certificate may be subject to the use tax. In addition, any property purchased out of state or exempt from Indiana sales or use tax and converted to a nonexempt use by the business is subject to the use tax at the time of conversion. Complete the Sales/Use Tax Worksheet below to compute any sales/use tax liability. For more information about use tax see the department’s website available at www.in.gov/dor/, or call (317) 232-0129. Line 6a. Enter the total tax liability of the nonresident members from line 15F of Schedule Composite (column D plus column E). Enclose Schedule Composite. Line 6b. Enter the total tax liability of the nonresident corporate entity(ies) from line 29D of Schedule Composite-COR. Enclose Schedule Composite-COR. Line 8. Enter the total amount of pass-through withholding. Enclose Schedule IN K-1 from the paying entity. Line 9. Enter the total composite withholding payments from Form IT-6WTH. Amounts withheld from nonresident individual partners included in the composite return must be remitted using Form IT-6WTH. Note. Do not claim withholding with Form IT-6WTH until you have remitted the withholding to DOR. Line 10. Enter any other payments and credits belonging to the partnership. A detailed explanation must be enclosed for any credits claimed on this line. Caution: Two separate calculations of interest and penalty might be required: • Interest is computed on the net amount of the composite tax on line 14 paid after the 15th day of the 4th month following the end of the partnership’s taxable year. Interest is calculated from the day following the due date for payment of the composite tax to the actual date the balance is paid with Form IT-65. • Interest on use tax is calculated on the amount of use tax on line 14 that is paid after the original due date of Form IT-65 return. See Departmental Notice #3 available at www.in.gov/dor/3618.htm for the current interest rate or contact the department by calling (317) 232-0129. Line 16. Enter the total penalty due. The penalty for late payment is 10% of the amount (but not less than $5) of any composite tax due on line 14 paid after the 15th day of the 4th month following the end of the partnership’s taxable year. (See the caution note for line 15.) The penalty is still due on use tax paid after the original due date of the return. 10 If a return showing no liability on line 7 is filed late, the penalty for failure to file by the due date is $10 per day the return is past due, up to a maximum of $250. In addition, a separate $10 penalty is assessed on each Schedule IN K-1 information return that is filed late. Note: No penalty is due on composite withholding tax if at least 80% of the withholding tax for the current year, or 100% of the prior year’s withholding tax is remitted by the 15th day of the 4th month following the end of the tax year. Penalty is applicable if all remaining tax and interest due is not paid by the extended due date. Line 17. A penalty of $500 is assessed to any partnership that fails to file a composite return for all its nonresident partners (PL 211-2007 SEC. 27, 44, 58). If all nonresident partners are not included on the composite return, please remit that penalty here. Line 18.: If line 14 is greater than zero, add lines 14 – 17 and enclose a separate remittance for the total amount owed for each Form IT-65 filed. Please pay in U.S. funds. If paying by check, make check payable to Indiana Department of Revenue. Line 19. If the total of lines 8 through 13 exceeds line 7, subtract the total of lines 15 through 17 from line 14. If the result is less than 0, this is the net overpayment. If penalties and interest are due because of a delinquent filing or payment, the overpayment must be reduced by these charges. If the result is a balance due, enter the difference on line 18. An overpayment credit may not be carried over to the following year, so any overpayment amount will be refunded. Certification of Signatures and Authorization Section Sign, date, and print the 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. Personal Representative Information Typically, the department contacts a taxpayer if we have any questions or concerns about the tax return. If the taxpayer wants the department to be able to discuss the tax return with someone else (e.g., the person who prepared it or a designated person), this area must be completed. First, check the “Yes” box that follows the sentence “I authorize the department to discuss my tax return with my personal representative.” Next, enter: • The name of the individual designating as a personal representative; and • The individual’s email address. If this area is completed, the department is authorized to contact the personal representative, instead of the taxpayer, about this tax return. After the return is filed, the department will communicate primarily with the designated personal representative for any matters concerning this return. Note: The authorization for the department to be in contact with your personal representative may be revoked at any time. To do so, tell us in a signed statement. Include the taxpayer name, federal identification number, and the year of the tax return. Mail the statement to Indiana Department of Revenue, P.O. Box 7206, Indianapolis, IN 46207-7206. Officer Information An officer of the organization must sign and date the tax return and enter the officer’s name and title. Please enter a daytime telephone number where the department may call if there are any questions about the tax return. Also, enter your email address to be contacted via email. 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 FID or Social Security number; • The paid preparer’s complete address. Note: Complete this area even if the paid preparer is the same individual designated as the personal representative. Mailing Options If taxes are owed, please mail the completed return to: Indiana Department of Revenue P.O. Box 7205 Indianapolis, IN 46207-7205 If taxes are not owed, please mail the completed return to: Indiana Department of Revenue P.O. Box 7147 Indianapolis, IN 46207-7147 Instructions for Schedule IN K-1 Enclose a copy of each partner’s Schedule IN K-1 with Form IT-65.* Also, provide a completed copy of Schedule IN K-1 to each partner. *New. Beginning with tax years ending after Dec. 31, 2019, a taxpayer that is required to file 25 or more Schedule IN K-1s must file the Schedule IN K-1s in an electronic format. For taxpayers filing on a calendar year basis, this electronic filing requirement begins with tax year 2020. 11 Worksheet for Partnership Distributive Share Income, Deductions and Credits Use this worksheet to compute the entry for line 1 of Form IT-65 and to assist in computing amounts reported on Schedule IN K-1. Enter the total distributive share of income from each item as reportable on Form 1065, Schedule K. Do not complete Column B and C entry lines unless the partnership received distributive share or tiered income from other entities. A. Partnership Income All Sources Distributive Share Amounts: Partnership’s Distributive Share of Items 1. 2. 3. 4. 5. 6a. 7. 8. 9a. 10. 11. Ordinary business income (loss)..................................................... Net rental real estate income (loss)................................................ Other net rental income ................................................................. Guaranteed payments .................................................................... Interest Income............................................................................... Ordinary dividends.......................................................................... Royalties......................................................................................... Net Short-term capital gain (loss) ................................................... Net long-term capital gain (loss) .................................................... Net IRC Section 1231 gain (loss) ................................................... Other income (loss) ........................................................................ Less allowable deductions for state tax purposes: B. Distributions from Partnerships/ Estates/Trusts Everywhere Enter for line 14B below total distributive share income received by the partnership from all other non-unitary partnerships, estates, and trusts. Enter for line 15B an amount equal to required state modifications for Indiana Adjusted Gross Income. C. Distributions Attributed to Indiana Enter for line 14C below, total distributive share income received by the partnership from other partnerships, estates, and trusts that were derived from or allocated to Indiana. Enter for line 15C an amount equal to the Indiana modifications to adjusted gross income attributed to Indiana. 12. IRC Section 179 expense deduction 1.......................................... 13A. Portion of expenses related to investment portfolio income including investment interest expense and other (federal non-itemized) deductions............................................................... 13B. Other information from line 20 of federal K-1 related to investment interest and expenses not listed elsewhere ................ 14. Carry total on line 14A to Form IT-65 line 1, on front page of return ....................................................................................... 14A 14B 14C 15. Total of Indiana state modifications to distributive share income (see line 2d, Form IT-65)............................................................................................... 15B 15C 16. Net other Indiana adjusted gross income distributions from partnerships, estates, and trusts (add line 14C and 15C).................................................................................................................... 16C 17. Enter amount of Indiana pass-through credits attributed from other partnerships, estates, and trusts, if any................................................................................................................................................................. 17C Worksheet for Attributing Partnership Income for Unitary Corporate Partners Use the worksheet whenever partnership income is being distributed to a corporate partner having a unitary relationship with the partnership. A unitary business relationship means maintaining business activities or operations that are of mutual benefit, dependent upon, or contributory to one another in transacting business between a corporate partner and the partnership. Unity may be established whenever there is unity of operation and use evidenced by centralized management or executive force, centralized purchasing, advertising, accounting, or other controlled interaction between a corporate partner and the partnership. If a corporate partner and a partnership maintain a unitary business relationship as described above, the partnership distribution shall be distributed to the partner without any apportionment by the partnership. If the partner derives income from sources both within and outside Indiana and is required to apportion its income, the partner’s apportionment factor shall include the partner’s proportionate share of the apportionment factor of the partnership. Use the following table to show apportionment factor’s values from the partnership assigned to the unitary corporate partner. Partnerships deriving income from sources both within and outside Indiana or having any corporate partners must complete the Apportionment Schedule E. Enter the partner’s pro rata amounts as determined by the partnership entity’s completed Apportionment Schedule E. Duplicate this worksheet for each corporate partner. (These amounts are to be included with the corporate partner’s own apportionment factor.) Apportionment Schedule E: Receipts Factors Total from Indiana Sources Line 1A Total from All States Line 1B 12 Part 1 – Partner’s Identification Section Complete a separate Schedule IN K-1 to identify each partner. Check the box if filing an amended return. Line 1. Enter the name of the partner (individual, entity, trust name, etc.). Line 2. Enter the partner’s Social Security number if an individual or the partner’s federal identification number (FID) if the partner is another entity. Line 3. Enter the applicable pro rata percentage of the partner’s interest in the partnership. The percentage should be adjusted to an annual rate if necessary. Note: The 3-digit codes utilized on behalf of each partner on Schedule IN-OCC towards composite tax should be reflected as 4-digit codes on Part 2 of Schedule IN K-1. Any pro rata portion of the partner’s credit above the 4-digit amount previously utilized towards composite tax should be reported on Part 2 of Schedule IN K-1 as a 3-digit code and the remaining amount reflected in the amount claimed column. Example: Company A used $400 of the partner’s $700 total Hoosier Business Investment Credit to offset his tax liability on the composite filing. The partner has $300 remaining credit. The IN K-1 will breakdown the credit as follows: Line 4. Enter the partner’s state of residence or commercial domicile. Line 5. Enter the name of the entity that remitted actual payment of the withholding. Line 6. Enter the FID of the paying entity. Note: Do not obscure any digits when entering the FID number. Line 7. Enter the amount of distributive share. This amount should include all Indiana add-backs and deductions. Line 8. Enter the amount of Indiana state tax withheld. This amount should only include payments made into the corporate account and withholding amounts passed through by another entity. Line 9. Enter the amount of Indiana county tax withheld. Part 2 – Pro Rata Share of Indiana Pass-through Tax Credits from Partnership If the partnership has available any eligible Indiana credits flowing through to the partners, enter the following: • Federal ID number from the entity that the credit was awarded to. If the credit is passed through from another entity enter the FID from Schedule IN K-1; • The credit’s certification year; • For credit codes 820, 839, 849, 857, 858, 860, 1820, 1849, 1858, and 1860, enter the credit’s certification, project, or PIN number; • The credit’s 3- or 4-digit credit code; and • The pro rata amount of credits allotted to each partner. A completed IN-OCC credit schedule with Form IT-65 to support the credit distribution for certified credits must be enclosed, otherwise the credits will be denied. See the descriptive list of pass-through tax credits that may be available to a pass-through entity on page 16. Each credit is assigned a 3- or 4-digit code number. This should be used for identification purposes when reporting and claiming these credits. For more information, see Income Tax Information Bulletin #59 available at www.in.gov/dor/3650.htm. 3- or 4- Digit Code Amount Hoosier Business Investment Credit – Composite 1820 $400 Hoosier Business Investment Credit 820 $300 Credit Name If the partner has other taxable Indiana-source income, Form IT40PNR, reporting all Indiana-source income (including the income taxed on the composite return) should be filed. When completing the IN-OCC, the partner will be able to use up to $700 of the HBI credit, using the amount associated with the 4-digit number first. For example, if the total state tax liability is $500, “HBI 1820 $400” will be listed on Schedule IN-OCC, and the remaining amount is then reported as needed as “HBI 820 $100.” A 3-digit code 820 in the amount of $200 remaining will be available to carryforward. Credits reported on Part 2 of Schedule IN K-1 that are used to offset tax liabilities will be reported on the following lines on Form IT-65: • Any credits not requiring an IN EDGE, IN EDGE-R, or IN-OCC schedule will be reported on line 10; • EDGE credit code 839 will be reported on line 11; • EDGE-R credit code 857 will be reported on line 12; and • IN-OCC credit codes 820, 849, 858, 860, 1820, 1849, 1858, 1860 will be reported on line 13. Part 3 – Distributive Share Amount Complete lines 1 through 14 for the partner. Also provide the partner with a Schedule IN K-1 showing the partner’s share of income, credits, and modifications. If filing federal Form 1065-B, convert taxable income distributions to federal Form 1065 Schedule K-1 format. Line 1 through line 13b. For full-year Indiana resident partners, complete these lines as shown on the federal Schedule K-1, Form 1065 or Form 8865. For most corporate partners and all nonresident individual partners, the federal Schedule K-1 amounts should be multiplied by the apportionment percentage calculated on Schedule E. See the instructions beginning in the next column. Enter the apportioned amounts on lines 1 through 13b. If any entries on lines 2 – 10 represent nonbusiness income to the partnership, these amounts are allocated to the appropriate state. 13 Line 6, Ordinary dividends, corresponds to line 6a on the federal K-1. Line 9, Net long-term capital gain (loss), corresponds to line 9a on the federal K-1. On line 13a or 13b, include investment interest expenses attributed to royalty income. Also include all other federal deductions. However, do not include those deductions treated as itemized deductions. Do not report any other type of investment interest expense, itemized deduction, or carryover loss on this line. Note: If the partnership has received any distributions from other entities having income previously apportioned to Indiana, use the following methodology below to report distributive share income for Schedule IN K-1. Alternative Completion of Schedule IN K-1 Information for Part 3 An alternative application of Schedule IN K-1 must be used for the following: • Members who are nonresident individuals; • Corporate partners; and • Other partnerships if they had income from outside Indiana. Use the following method to complete Schedule IN K-1 when the partnership had any apportioned income from outside Indiana or is otherwise required to complete the Indiana apportionment schedule. Modify each required Schedule IN K-1 line by recalculating the pro rata share of total partnership income reported on line 1 of Form IT-65. Include all required Indiana modifications to AGI. Use the pro rata amount from line 14A on the Worksheet for Partnership Distributive Share Income, Deductions, and Credits by following these steps: Step 1. Deduct from the above pro rata share the respective pro rata amount of line 14B and line 15B of the worksheet. Step 2. Multiply the result by the Indiana apportionment percent reported on line 4 of Form IT-65. This can also be found on line 9 of Schedule E. This amount should reflect the partner’s proportionate share of this partnership’s activity in Indiana. Step 3. Add to the above amount the pro rata share of any other (entity) source income this partnership received that was previously apportioned or allocated as distributive share income derived from Indiana. This can be found on line 16C of the worksheet. The result is the modified Indiana partnership income from Indiana sources. It should be reported on the appropriate lines of Schedule IN K-1 of nonresident individuals, corporations, and partnerships for AGI purposes. Also use the Worksheet for Attributing Partnership Income to Unitary Corporate Partners to compile additional information for reporting distributive share income. Certain corporate partners require these additional income figures from the partnership to properly report distributive share incomes and to compute Indiana state income tax liabilities as a result of the partnership’s activity in Indiana. Part 4 – State Modifications Lines 15 – 23. Enter the Indiana modifications from the front of Form IT-65, lines 2a through 2c (and any additional sheets) as percentage applied. In the case of nonresident individuals, enter them as apportioned. List the pro rata share amount of each modification on the appropriate line. (Use a negative sign to denote negative amounts.) Line 24. Enter the total distributive share of modifications. Add lines 15 through 23. Use a negative sign to denote negative amounts. Carry this total to column B of Schedule Composite. Instructions for Schedule E, Apportionment of Income for Indiana Complete the apportionment of income schedule whenever the corporation: • Has income derived from sources both within and outside Indiana; and • Has any nonresident partners. The apportionment percentage determines the Indiana net income of the nonresident individual partners, trusts, and estates that pass through as a result of the partnership’s activities everywhere. Note: Interstate transportation companies should consult Schedule E-7 for details concerning apportionment of income. This schedule is available at www.in.gov/dor/6525.htm. Part I – Apportionment of Adjusted Gross Income Sales/Receipts: The sales factor is a fraction. The numerator is the total receipts of the taxpayer in Indiana during the tax year. The denominator is the total receipts of the taxpayer in all jurisdictions during the tax year. In the case of certain receipts, all or a portion of the receipts are not included. • For receipts includible under IRC section 965 or GILTI (IRC Section 951A), the amount included as a receipt is the amount included in adjusted gross income minus any amount claimed as a foreign source dividend under IC 6-32-12. • Receipts do not include deemed foreign dividends under IRC section 965 or GILTI. • For receipts from the sale of securities, including stocks, bonds, options, and future and forward contracts, only the net gain from the sale is treated as a receipt. • For receipts from hedging or similar transactions, only the net gain resulting from both sets of transactions is treated as a receipt. The numerator of the receipts factor must include the following to the extent included in the receipts numerator: • All sales made in Indiana; • All sales made from Indiana to the U.S. government; • All receipts from sales of business property in Indiana; and • All interest, dividend, or other intangible income earned in Indiana. 14 • The numerator contains intangible income attributed to Indiana, including interest from consumer and commercial loans, installment sales contracts, and credit and debit cards as prescribed under IC 6-32-2.2. Total receipts include gross sales of real and tangible personal property less returns and allowances. Sales of tangible personal property are in Indiana if the property is delivered or shipped to a purchaser within Indiana regardless of the f.o.b. point or other conditions of sale. For tax years beginning on or after Jan. 1, 2016, Indiana no longer requires the inclusion of “throwback” sales in the numerator of the receipts factor. Sales or receipts not specifically attributed above shall be attributed as follows: • Gross receipts from the sale, rental, or lease of real property are in Indiana if the real property is located in Indiana; Receipts from other services and other intangibles are attributed to Indiana if the benefit of the service or intangible is received in Indiana. Please see [regulations] for further information on whether the receipts from a particular transaction are attributed to Indiana. Sales to the United States Government: The United States government is the purchaser when it makes direct payment to the seller. A sale to the United States government of tangible personal p
More about the Indiana IT-65 Booklet Corporate Income Tax Tax Return
We last updated the Current Year Partnership Return Booklet with Forms and Schedules in March 2020, and the latest form we have available is for tax year 2019. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Indiana Department of Revenue. You can print other Indiana tax forms here.
Other Indiana Corporate Income Tax Forms:
|Form Code||Form Name|
|Form NP-20||Nonprofit Organization's Annual Report|
|IT-20S Booklet||Current Year S Corporation Income Tax Booklet with Forms and Schedules|
|IT-65 Booklet||Current Year Partnership Return Booklet with Forms and Schedules|
|IT-20S Form||Current Year S Corporation Income Tax Forms and Schedules|
|Form AD-19||Affidavit for Reinstatement of Domestic Corporation|
Indiana usually releases forms for the current tax year between January and April. We last updated Indiana IT-65 Booklet from the Department of Revenue in March 2020.
IT-65 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 IT-65 Booklet
We have a total of nine past-year versions of IT-65 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.