Form It-20s - Indiana S Corporation Income Tax Return - 2014 Page 22
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32Part II - Business/Other Income Questionnaire
However, it is subject to any “passive activity” loss limitations
pursuant to IRC Section 469 and capital loss limitations
Complete all applicable questions in this section. If income is
imposed on noncorporate taxpayers by IRC Section 1211;
apportioned, list:
(b) No deduction is permitted for interest paid on investment
(a) All business locations where the corporation has operations;
indebtedness under IRC Section 163(d);
(b) The nature of the business activity at each location, including
(c) No deduction is permitted for carryover of net operating
whether a location:
losses or capital losses;
1. Accepts orders in that state;
(d) No personal exemption is permitted;
2. Is registered to do business in that state; or
(e) No deduction is allowed for charitable contributions allowed
3. Files income tax returns in other states.
or allowable pursuant to IRC Section 170;
(c) Whether property in the other states is owned or leased.
(f) No credit is permitted for taxes paid to other states;
(g) No credit carryovers are permitted; and
You must enclose the completed Schedule E, Apportionment of
(h) All other credits that flow through to shareholders on a pro
Income, with your return.
rata basis are limited to the shareholder’s state income tax
liability. See the list of Pass-through Tax Credits on page 18.
Instructions for Form IT-20SCOMP,
An S corporation filing a composite return is liable not only for
Composite Return
the tax shown on the return. It is also liable for any additional tax,
An S corporation that has any shareholders who are nonresidents
interest, and penalty as a result of a subsequent audit or examination.
of Indiana must file a composite return and include all its qualified
nonresident individual shareholders. A penalty of $500 will be
The S corporation should send a copy of the general Indiana filing
assessed to any S corporation that fails to file a composite return that
requirements to each nonresident shareholder.
includes all qualified nonresident shareholders.
Completing the Form
The name of all nonresident individual shareholders who have opted
Indicate the name of each nonresident individual shareholder.
out of the composite filing or should be excluded from the composite
Subject to the limitations and conditions specified in the filing
filing must be listed on the IT-20SCOMP. The box must be checked
requirements, separately compute the state tax liabilities and credits
indicating the shareholder has been excluded from the composite filing.
on the composite return attributable to each qualifying shareholder.
Schedule IT-20SCOMP must be filed with and have the same due
Column E. If a nonresident individual is engaged in principal work
date as the S corporation return. If the Internal Revenue Service
activity in an adopting county on January 1, the county tax should
allows the S corporation an extension to file its income tax return,
be calculated. Multiply column C by the applicable nonresident
the due date for its Indiana return is automatically extended for the
county tax rate. Use Departmental Notice #1 to determine whether a
same period, plus 30 days.
composite member is subject to a county tax. Use the county income
tax chart for Form IT-40PNR to verify the county’s tax rate. Get this
Composite income means each nonresident shareholder’s distributive
form from our website at You can also
share of income derived from sources within Indiana as determined
call our main tax line at (317) 232-0129.
by the use of the apportionment formula described in IC 6-3-2-2(b)
plus Indiana modifications.
Column F. The amount of tax liability for each qualifying
shareholder is limited to the respective amount of tax minus the
Filing Requirements
amount of credit (column D + column E).
Any shareholder within the following categories must, in all cases, be
Column G. Check the box in this column if the shareholder is
excluded from the composite return:
excluded the composite return due to opting out of the composite
(a) Any partnership or fiduciary;
filing or qualifying for the exclusions for filing on the composite.
(b) Any shareholder who received a distribution(s) during the
year in excess of his or her distributive share of net ordinary
Note: You do not need to enclose a federal Schedule K-1 for each
income from the S corporation; or
shareholder. However, it must be made available for inspection upon
(c) Any shareholder who sold any portion of his or her interest in
request by the department.
the corporation during the year.
(d) Any shareholder who provided the S corporation with the
If you have any questions, call the department at (317) 232-0129.
IN-COMPA to opt out of the composite filing. The
S corporation does not need to enclose the affidavit with its
return; however, it must be made available upon request by
the department.
The following limitations and conditions apply to each shareholder
included as a member in the composite return:
(a) Any short-term capital gain (loss) plus any long-term capital
gain (loss) specifically allocated for a shareholder is allowed.
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