Instructions For Form Fit-20 - Indiana Financial Institution Tax Return - 2011 Page 3
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28Annual Public Hearing
File the general Indiana corporate adjusted gross income tax
return, Form IT-20, if for the taxable year you do not meet the
In accordance with the Indiana Taxpayer Bill of Rights, the Indiana
80% threshold of gross income derived from activities that
Department of Revenue will conduct an annual public hearing
constitute the business of a financial institution. This form is
on Tuesday, June 5, 2012. Please come and share your ideas on
available from the Department’s website at
how the Department can better administer Indiana tax laws.
The hearing will be held from 9 a.m. to 11 a.m. in the Indiana
Government Center South, Conference Center, Room 1, 402
Due Date of Return
W. Washington St., Indianapolis, Indiana. If you are unable
to attend, please submit your concerns in writing to: Indiana
The annual return is due on or before the 15th day of the fourth
Department of Revenue, Commissioner’s Office, 100 N. Senate
month following the close of the corporation’s tax year.
Ave., Indianapolis, IN 46204.
Utility Services Use Tax
General Filing Requirements for FIT-20 Forms and
Effective July 1, 2006, an excise tax known as the utility services
Schedules
use tax is imposed on the retail consumption of utility services in
Indiana at the rate of 1.4% where the utility receipts tax is not paid
Copies of pages 1 through 4 of the corporation’s federal income tax
by the utility providing the service.
return must be enclosed with Form FIT-20 along with Schedule
M-3 and the extension of time to file form. This requirement is
You may be liable for this tax if you purchase utility services
made under the authority of Indiana Code (IC) 6-5.5-6-5.
from outside Indiana (or anywhere if for resale) and become the
end user in Indiana of any part of the purchase. The person who
References to the Internal Revenue Code
consumes the utility service is liable for the utility services use tax
Public Law (PL) 229-2011, SEC. 83 updates references to the
based on the price of the purchase. Unless the seller of the utility
Internal Revenue Code (IRC) in certain Indiana tax statutes. For
service is registered with the Department to collect the utility
tax year 2011, any reference to the Internal Revenue Code and
services use tax on your behalf, you are required to remit this tax
subsequent regulations means the Internal Revenue Code of 1986,
on Form USU-103. For more information, refer to Commissioner’s
as amended and in effect on Jan. 1, 2011.
Directive #32, at
For a complete summary of new legislation regarding taxation,
Apportionment of Adjusted Gross Income
please see 2011 Summary of State Legislation Affecting the
Resident financial institutions are treated the same as nonresident
Department of Revenue at
financial institutions for the purposes of the financial institution
tax by providing that the tax is imposed on the apportioned
Who Must File Form FIT-20
Indiana income of financial institutions.
IC 6-5.5-2-1 imposes an 8.5% financial institution tax on the
adjusted gross income of any corporation transacting the business
The law employs a single-factor receipts formula to determine the
of a financial institution, including a holding company, a regulated
percentage of the taxpayer’s income subject to the tax. The single-
financial corporation, a subsidiary of a holding company or
factor formula is derived by dividing the gross receipts attributable
regulated financial corporation, or any other corporation carrying
to transacting business in Indiana by the total receipts from
on the business of a financial institution. Any taxpayer who is
transacting business in all taxing jurisdictions.
subject to tax under IC 6-5.5 is exempt from Indiana’s adjusted
gross income tax.
Nexus Rules
The law is based on the ability of a corporation under modern
A resident taxpayer is a taxpayer who is commercially domiciled
technology to transact the business of a financial institution in
in Indiana and transacts the business of a financial institution in
Indiana, regardless of the principal location of its offices and
Indiana.
employees.
A nonresident taxpayer is a taxpayer who is not commercially
A taxpayer is transacting business in Indiana for purposes of the
domiciled in Indiana but transacts the business of a financial
franchise tax when it satisfies any of the following eight tests:
institution in this state.
(1) Maintains an office in Indiana;
(2) Has an employee, a representative, or an independent
The financial institution tax extends to both resident and
contractor conducting business in Indiana;
nonresident financial institutions and to all other corporate entities
(3) Regularly sells products or services of any kind or nature
when 80% or more of its gross income is derived from activities
to customers in Indiana who receive the product or service
that constitute the business of a financial institution. The
in Indiana;
business of a financial institution is defined as activities authorized
(4) Regularly solicits business from potential customers in
by the federal reserve board; the making, acquiring, selling, or
Indiana;
servicing of loans or extensions of credit; acting as an agent, a
(5) Regularly performs services outside Indiana that are
broker, or an advisor in connection with leasing real and personal
consumed within Indiana;
property that is the economic equivalent of an extension of credit;
or operating a credit card, debit card, or charge card business.
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