Form It-20np - Consumer'S Use Tax Worksheet For Line 19 (Page 2 of 7) in pdf

If any part of the gross income received by such organi-

overpayment, the return must be filed within three years from

zations is used for the private benefit or gain of any member,

the latter of the date of overpayment or the due date of the

trustee, shareholder, employee, or associate, such organiza-

return.

tion will not be granted an exemption. The term “private

Estimated Quarterly Tax Payments

benefit or gain” shall not include reasonable compensation

paid to employees for work or services actually performed.

All not-for-profit organizations whose gross income tax

(B) Certain Specific Wholly-Exempt Organizations:

liability exceeds $1,000 for a taxable year, or adjusted gross

1. Hospitals licensed by the Indiana State Board of

income tax exceeds the gross tax by $1,000 annually, or

Health;

supplemental net income tax liability exceeds $1,000 annually,

2. Shared hospital service organizations exempt from

must file quarterly estimated tax payments.

federal income tax by I.R.C. 501(c)(3) or (e);

The estimated tax payment is submitted with an Indiana

3. Labor unions;

estimated quarterly return, Form IT-6, or by electronic funds

4. Churches;

transfer when the average quarterly liability exceeds $10,000.

5. Monasteries;

If the organization has overpaid estimated payments, a credit

6. Convents;

must be claimed on the annual return, Form IT-20NP, to obtain

7. Schools that are part of the public school system of

a refund or to carryover the excess to the following year’s

Indiana;

estimated tax account. If an estimated account needs to be

8. Parochial schools regularly maintained by recognized

established, obtain Form E-6 to remit the initial payment and

religious denominations; and

to request preprinted quarterly estimated IT-6 returns.

9. Trusts created for the purpose of paying pensions to

The quarterly due dates for estimated tax payments for

members of any particular profession or business who

calendar year organizations are April 20, June 20, September

have created the trust for the purpose of paying pen-

20 and December 20 of the taxable year. Fiscal year and short

sions to each other;

tax year filers must remit by the twentieth day of the fourth,

To preserve the exemption, a specific group or organiza-

sixth, ninth, and twelfth months of their tax period. For further

tion cannot be organized or maintained for private gain or

instructions, refer to Income Tax Information Bulletin #11.

profit.

Penalty for Underpayment of Estimated Taxes

For additional filing requirements of not-for-profit organi-

zations obtain Income Tax Information Bulletin #17 and Form

Organizations required to estimate their income taxes will

IT-35AR by writing the Department, or by calling (317) 232-

be subject to a ten percent (10%) underpayment penalty if

2188.

they fail to timely file estimated tax payments or fail to remit

a sufficient amount. To avoid the penalty, the required

Extensions

quarterly estimate must be at least twenty percent (20%) of

The Department recognizes the Internal Revenue Ser-

the total income tax liability for the current taxable year or

vice application for automatic extension of time to file, Form

twenty-five percent (25%) of the organization’s final income

2758 and/or Form 7004. Please forward a copy of your

tax liability for the previous tax year. The penalty for the

federal extension to the Not-for-Profit Section to pre-

underpayment of estimated tax is assessed on the difference

vent revocation of your exemption. Indicate your not-

between the actual amount paid by the organization for each

for-profit registration number on your request for an

quarter and twenty-five percent (25%) of its final income tax

extension of time to file.

liability for the current tax year. Refer to the instructions for

A copy of the federal extension must also be attached to

Schedule IT-2220, Penalty for the Underpayment of Corpo-

the Indiana return. Returns postmarked within thirty (30) days

rate Income Taxes, which is available from the Department

after the last date indicated on the federal extension will be

upon request.

considered timely filed. If a federal extension is not needed, a

Use Schedule IT-2220 to show an exception to the

taxpayer may request, in writing, an Indiana extension of time

penalty if the not-for-profit organization underpaid its income

to file from the Indiana Department of Revenue, Compliance

tax for any quarter. If an exception to the penalty is not met,

Division, Not-for-Profit Section, Indiana Government Center

payment of the computed penalty must be included with the

North, Room N203, 100 N. Senate Avenue, Indianapolis,

return.

Indiana 46204-2253.

Electronic Funds Transfer Requirements

Penalty for late payment will not be imposed if at least

90% of the tax due is paid by the original due date. The

Effective January 1, 1998, I.C. 6-2.1-5-1.1 and I.C. 6-3-

extension payment should be sent with Indiana Form IT-6 as

4-4.1 require that if a not-for-profit organization’s:

a fifth quarter estimated tax payment.

1. Estimated quarterly gross and/or adjusted gross in

come tax liability for the current year; or

Amended Returns

2. Average estimated quarterly gross and/or adjusted

To amend a previously filed Form IT-20NP, a corrected

gross income tax liability for the preceding year;

copy of the original form must be filed with “AMENDED”

exceeds $10,000, the organization shall make its quarterly

marked clearly at the top of the form. To claim a refund of an

estimated payments by electronic funds transfer (as defined

Form It-20np - Consumer'S Use Tax Worksheet For Line 19 Page 2

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