§ 6-3-4-13.5 — Income withholding; first payment of prize money; racing event at qualified motorsports facility

Indiana § 6-3-4-13.5

• Jurisdiction: Indiana
• Art. 3: STATE INCOME TAXES
• Ch. 4: Returns and Remittances

Text

5. (a) The following definitions apply
throughout this section:
(1) "Initial recipient" means a person or entity to whom prize
money is paid by a payor.
(2) "Payor" means a promoter, sanctioning body, or designee of
the promoter or sanctioning body that first pays prize money to a
race team or any other person or entity. The term does not include
a subsequent person or entity who pays or distributes any part of
the prize money.
(3) "Prize money" with respect to a racing event at a qualified
motorsports facility means any purse or other amounts earned for
placement or participation in a race or part of a race, including
qualification. The term does not include amounts earned based on
placement or participation in more than one (1) race unless the
races are conducted at a qualified motorsports facility.
(4) "Qualified motorsports facility" has the meaning set forth in
IC 5-1-17.5-14.
(5) "Race team" has the meaning set forth in IC 6-3-2-3.2(a).
(6) "Ultimate recipient" means the person or entity to whom any
tax withheld under this section is to be credited for purposes of
this article or IC 6-5.5. The term may apply to an initial recipient.
(b) Whenever a payor pays prize money to an initial recipient, the
payor shall deduct and retain from the prize money the applicable
amount prescribed in the withholding instructions described in section
8 of this chapter. The following provisions apply to a payor and the
money required to be deducted and retained by the payor under this
section:
(1) Money deducted and retained by a payor under this section
immediately becomes the money of the state and every payor who
deducts and retains money under this section holds the money in
trust for the state.
(2) The provisions of IC 6-8.1 relating to additions to tax in case
of delinquency and penalties apply to a payor under this section.
For these purposes, the payor shall be considered the taxpayer and
any amount required to be remitted to the department under this
section shall be considered to be the tax of the payor.
(3) The payor is liable to the state for the payment of the tax
required to be deducted and retained under this section. The payor
is not liable to any initial recipient or ultimate recipient for the
amount deducted from the payment of prize money and paid to
the department in compliance, or intended compliance, with this
section.
(c) A payor shall remit to the department the amount required to be
deducted and retained under subsection (b) not later than thirty (30)
days after the end of the month in which the prize money is paid. At the
time of the remittance, the payor shall provide to the department a list
of all initial recipients and the amount withheld on behalf of each
initial recipient on forms prescribed by the department.
(d) Not later than thirty (30) days after the end of the calendar year
for which tax is withheld under this section, an initial recipient shall
provide a statement to each ultimate recipient and to the department
listing the amounts withheld under subsection (b) on behalf of the
ultimate recipients. The statement must be made in the manner
prescribed by the department. A statement from the initial recipient to
the ultimate recipient is evidence of tax withheld by the payor in favor
of the ultimate recipient unless the statement from the initial recipient
is determined to be erroneous or fraudulent.
(e) This section does not impose a duty to withhold amounts from
prize money on an entity other than a payor. However, an initial
recipient or ultimate recipient may otherwise have a duty to withhold
amounts from prize money under sections 8, 12, 13, or 15 of this
chapter.

Legislative History

As added by P.L.146-2020, SEC.26.