DISCLAIMER: Information Bulletins are intended to provide nontechnical 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 inconsistent with the law, regulations, or court decisions is not binding on either the Department or the taxpayer. Therefore, information provided in this Bulletin should only serve as a foundation for further investigation and study of the current law and procedures related to its subject matter.

SUBJECT: Extension of Time to File Indiana Corporation Income Tax Returns and Recognition of the Federal Extension of Time to File Indiana Corporation Income Tax Returns

REFERENCES: IC 6-8.1-6-1; IC 6-8.1-10-2.1

INTRODUCTION

The purpose of this Bulletin is to explain the steps necessary to get a valid Indiana extension of time to file an Indiana corporate income tax return.

I. EXTENSION OF TIME TO FILE

The Indiana Department of Revenue accepts the approved federal Form 7004 (Application for Automatic Extension of Time to File Corporation Income Tax Return). It is not necessary to request a separate extension of time to file for Indiana filing purposes if a federal extension has been approved. The Indiana corporation income tax return will be accepted as timely if it is filed within 30 days after the expiration date of the federal extension. The federal extension is an automatic 6 month extension. A copy of the approved Federal Extension Application must be attached to the return.

If an extension of time to file is not being requested from the Internal Revenue Service, or if an extension is being sought for a period in excess of the 30 days past the expiration date of a federal extension, a special extension of time to file must be requested. The written request for a special extension of time to file must be made prior to the original due date or before the current extension of time expires. This request should contain an explanation as to why the extension is being sought and for what period. The request for a special extension of time to file should be sent to:

The Tax Administration Division will issue a letter of approval or denial.

A corporation must pay, by the original due date for filing its return, at least 90 percent of the tax that is reasonably expected to be due. Any amount due should be sent to the Tax Administration Division as a fifth quarter estimated payment on Form IT-6.

II. PENALTIES

A 10 percent penalty will be assessed against a taxpayer who files his Indiana corporation income tax return past the due date of the return and does not attach a valid extension of time to file or has not prepaid at least 90 percent of the tax reasonably expected to be due by the original due date. The penalty is imposed under IC 6-8.1-10-2.1.

III. INTEREST

Any tax that remains unpaid during an extension period accrues interest in accordance with IC 6-8.1-6-1(d). The interest rate changes annually. Please refer to Departmental Notice #3. The interest should be added to the amount shown as due on the tax return.

_____________________

John Eckart

Commissioner