§ 6-3-4-15.1 — Prescribe procedures

Indiana § 6-3-4-15.1

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

Text

1. For purposes of IC 6-3-4-12, IC 6-3-4-13,
and IC 6-3-4-15, the department may:
(1) prescribe procedures by which a pass through entity remits tax
on behalf of partners, shareholders, and beneficiaries who are
considered residents for purposes of those sections in the same
manner as tax is remitted for partners, shareholders, and
beneficiaries who are considered nonresidents for purposes of
those sections, provided that such procedures do not relieve filing
requirements otherwise applicable to partners, shareholders, and
beneficiaries who are considered residents for purposes of those
sections;
(2) prescribe special procedures for persons or entities that are
otherwise subject to withholding under those sections but who
may have circumstances such that a standard tax computation
may result in excess withholding;
(3) prescribe procedures for individuals and trusts that are
residents for part of the taxable year and nonresidents for part of
the taxable year;
(4) prescribe procedures by which an entity subject to those
sections may request alternative withholding arrangements,
provided that such arrangements do not jeopardize the tax
otherwise due under IC 6-3 or IC 6-5.5; and
(5) prescribe procedures and guidelines by which a partner,
shareholder, or beneficiary may elect to not be subject to
withholding, in whole or in part, provided that:
(A) the election by the partner, shareholder, or beneficiary lists
the conditions of the election and that the election is signed
under penalty of perjury prior to the due date for the pass
through entity to remit tax for the taxable year;
(B) the election states that partner, shareholder, or beneficiary
has adequate funds to remit any tax due under this article or IC 6-5.5;
(C) the election provides any periods for which withholding is
not required or is reduced;
(D) the election provides that the partner, shareholder, or
beneficiary agree to be subject to the jurisdiction of the state of
Indiana and shall be liable to file any returns otherwise due
under this article or IC 6-5.5, including any composite and
withholding returns, and to remit any tax otherwise due,
including any interest or penalties due on any tax due;
(E) the election provides that the election is subject to
department approval and that the department may revoke the
election at any time for any reason; and
(F) the election is attached to the returns of the pass through
entity and of the partner, shareholder, or beneficiary required
under this article or IC 6-5.5.
A failure by the pass through entity to obtain an election for a
taxable year or to attach the election to the pass through entity's
return for a taxable year shall be treated as if the election was not
made for the taxable year.

Legislative History

As added by P.L.159-2021, SEC.16. Amended by P.L.137-2022, SEC.40.