DISCLAIMER: Information Bulletins are intended to provide non-technical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate statutes, rules and court decisions. Any information that is not consistent with the law, regulations or court decisions is not binding on either the Department or the taxpayer. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein.

SUBJECT: Indiana Corporate Estimated Income Tax Payments

REFERENCES: IC 6-2.3-6-1; IC 6-3-4-4.1; IC 6-5.5-6-3; IC 6-8.1-6-1

INTRODUCTION

Form IT-6 should be used by all corporations required to file Indiana corporate adjusted gross estimated income tax returns. This return must be filed by the twentieth day of the fourth, sixth, ninth and twelfth month of the taxpayer's taxable year.

Pre-printed IT-6 forms should be checked for accuracy. It is very important that the federal identification number, name and address are correctly printed on the form. If information is incorrect, make corrections on the Form IT-6, and complete the name and address change coupon and return it to the Department of Revenue, System Services, P.O. Box 6197, Indianapolis, IN 46206-6197. This will ensure proper crediting and quicker processing of your estimated payments.

I. Filing Requirements

Corporations must make estimated payments if the adjusted gross income tax exceeds $2,500 for the taxable year.

Taxpayers should note that refunds reflected on the annual corporate income tax return may be applied to the next taxable year's estimated liability by entering the amount to be credited on the designated line of the annual return. An overpayment of estimated payments must be claimed on the annual return to obtain a refund.

Once a check is remitted for the remainder of a year's estimated income tax liability, no further estimated returns should be filed with the Department after the date of payment. All checks remitted to the Department should be accompanied by a return or a complete explanation for the payment. A zero liability for a quarter does not require Form IT-6 to be filed.

As of Jan. 1, 2008, if a taxpayer's estimated liability exceeds $5,000 per estimating period, the taxpayer is required to remit the tax by electronic funds transfer. If the estimated payment is made by electronic funds transfer, the taxpayer is not required to file Form IT-6. Questions relating to electronic funds transfer payments should be directed to (317) 232-5500.

II. Extension Payment Using Form IT-6

The Department recognizes the Internal Revenue Service application for automatic extension of time to file. It is not necessary to request a separate Indiana extension if you have a federal extension of time. Returns posted within 30 days after the last date indicated on the federal extension form will be considered filed on a timely basis. A copy of the federal extension form must be attached to the Indiana annual return when filed. If a federal extension is not needed, a corporation may request a separate Indiana extension of time to file. To request an Indiana extension of time to file contact the Indiana Department of Revenue, Data Control Business Tax, Returns Processing Center, 100 N. Senate Avenue, Indianapolis, IN 46204. 90 percent of the tax reasonably expected to be due must be prepaid prior to the original due date. Form IT-6 should be used to make an extension payment. This payment will be processed as a "fifth" estimated payment. (See Income Tax Information Bulletin #15 for more details.)

III. Adjusted Gross Income Tax

Corporations whose estimated adjusted gross income tax exceeds $2,500 for the taxable year must pay estimated adjusted gross income tax. When computing the estimated adjusted gross income tax for the taxable year, the adjusted gross income tax rate is 8.5 percent of Indiana adjusted gross income after apportionment.

IV. Financial Institutions Tax & Utility Receipts Tax

Corporations subject to the financial institutions tax (IC 6-5.5) and the utility receipts tax (IC 6-2.3) are subject to the same estimated filing thresholds as corporations subject to the corporate adjusted gross income tax.

V. Penalties

Corporations required to estimate their income taxes will be subject to a 10 percent underpayment penalty if they fail to file estimated tax payments or fail to remit a sufficient amount of estimated tax. The required estimate should exceed the annualized income installment calculated in the manner provided by Section 6655(e) of the Internal Revenue Code as applied to the corporation's liability, or 25 percent of the final tax liability for the prior taxable year. If either one of these conditions are met, there will be no penalty assessed for the estimated period.

If you have any questions concerning the filing of the estimated return, or if you need to obtain an IT-6 booklet, please do not hesitate to contact the Indiana Department of Revenue.

____________________

John Eckart

Commissioner