Instructions For Form Fit-20 - Indiana Financial Institution Tax Return - 2011 Page 5
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28Extensions for Filing
Unity of ownership exists for a corporation if it is a member of a
group of two or more business entities, 50% of whose voting stock
The Department accepts the federal extension of time application
is owned by a common owner or owners or by one or more of the
(Form 7004) or the federal electronic extension. If you have one,
member corporations of the group.
you do not need to contact the Department prior to filing your
annual return. Returns postmarked within 30 days after the last
The taxpayer designated as the reporting member of a unitary
date indicated on the federal extension will be considered timely
group shall file a combined return that includes all operations of
filed. If you do not need a federal extension of time but need one
the unitary business. List members included in the combined
for filing your state return, submit a letter requesting such an
return by completing FIT-20 Schedule H on page 4 of the
extension to the Department prior to the due date of your annual
return. See page 18, Instructions for Filing a Combined Return.
return.
Partnerships
To request an Indiana extension of time to file, contact the Indiana
Department of Revenue, Data Control Business Tax, Returns
Partnerships and trusts as entities are not subject to the franchise
Processing Center, 100 N. Senate Ave., Indianapolis, IN
tax. However, partnerships and trusts having corporate partners or
46204-2253.
corporate grantors and beneficiaries where the entity is conducting
the business of a financial institution are required to file a
If you have a valid extension of time or a federal electronic
partnership return, Form IT-65.
extension to file, you must check box V-1 on the front of the
return. If applicable, enclose a copy of the federal extension of time
The following guidelines should be considered when preparing
when filing your state return.
an informational return for a financial institution that is a
partnership:
An extension of time granted under IC 6-8.1-6-1 waives the late
(1) If the entity is a partnership and has nonresident corporate
payment penalty for the extension period on the balance of tax
partners, the partnership is required to withhold and
due provided 90% of the current year’s total tax liability is paid on
remit the nonresident corporation’s tax liability on its
or prior to the original due date. Form FT-QP should be used to
apportioned income if the nonresident corporation is
make an extension payment for your taxable year. This payment
not otherwise a taxpayer for purposes of the tax. The
will be processed as a “fifth” estimated payment. Use the preprinted
apportioned income attributable to the partner is the same
extension form included with your previous estimated coupon
percentage as its distributive share. If the corporate partner
packet or the blank FT-EXT form at the end of the booklet.
is otherwise subject to the franchise tax, the corporate
partner is responsible for the tax in accordance with its
Note: Any tax paid after the original due date must include
percentage share of the partnership’s adjusted gross income
interest. Interest on the balance of tax due must be included with
or apportioned income.
the return when it is filed. Interest is computed from the original
due date until the date of payment. In October of each year, the
(2) If a resident corporate partner is not otherwise subject to
Department establishes the interest rate for the next calendar year.
the tax, the corporate partner must pay the tax liability
See Departmental Notice #3 at
for
attributable to its partnership income. The income
interest rates.
attributed to the corporate partner’s share that has been
subject to the franchise tax would not be included in the
income calculation for purposes of the Indiana adjusted
Amended Returns
gross income tax.
A taxpayer must notify the Department within 180 days of
alterations or modifications to its federal income tax return
(3) If a corporation is a financial institution that is also a
(federal adjustment, RAR, etc.) as finally determined, by amended
partner in a partnership and the partnership is transacting
Form FIT-20. (The previous requirement was notification within
the business of a financial institution in Indiana, the
120 days.)
partner is a taxpayer for purposes of the financial
institution franchise tax.
To amend a previously filed Form FIT-20, you must file a corrected
copy of the original form. Check box A1 at the top of the form
Example: A bank in Maine is a partner with a bank in Indiana
if you are filing an amended return. To claim a refund of an
to make loans to Indiana borrowers. The only activity of the
overpayment, file the return within three years from the latter of
Maine bank is its involvement in the partnership. The partnership
the date of overpayment or the due date of the return.
is required to withhold the Maine bank’s share of the financial
institution tax.
IC 6-8.1-9-1 entitles a taxpayer to claim a refund because of a
reduction in tax liability resulting from a federal modification. The
United States Government Obligations
claim for refund should be filed within six months from the date of
modification by the Internal Revenue Service. If an agreement to
Although interest earned on U.S. obligations is not subject to
extend the statute of limitations for an assessment is entered into
income taxation, it is not preempted by federal law from being
between the taxpayer and the Department, the period for filing a
included in the tax base of a franchise tax. Therefore, interest from
claim for refund is likewise extended.
U.S. obligations is not to be subtracted from federal taxable income
in determining the tax base of the franchise tax.
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