Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet

The state tax return is due on the fifteenth day of the fourth month

The USU-103 return is due monthly by the thirtieth day following

following the close of the entity’s tax year.

the end of each month.

Accounting Methods and Taxable Year

Political Organization

The Department requires the use of the method of accounting

(IRC section 527)

State Return(s) to File

that is used for federal income tax purposes. The taxable year

Filing federal Form 1120-POL, file

Form IT-20

for the unrelated business income tax must be the same as the

accounting period adopted for federal adjusted gross income tax

purposes. If the apportionment provisions do not fairly reflect

Political organizations ﬁling federal Form 1120POL or 1120H are

the organization’s Indiana income, the taxpayer must petition the

not considered nonproﬁt organizations. They must ﬁle as regular

Department for permission to use an alternative method.

corporations on Form IT-20.

Due Date for Filing Form IT-20NP

The state tax return is due on the fifteenth day of the fourth month

The Form IT-20NP return is due on or before the fifteenth day of

following the close of the organization’s tax year.

the ﬁfth month following the close of the tax year.

Religious or Apostolic Organization

When an organization does not ﬁle a federal return pursuant to

(exempt under section 501(d))

State Return(s) to File

the Internal Revenue Code, its tax year shall be the calendar year

Filing federal Form 1065, file

Form IT-65

unless permission is otherwise granted.

Exempt Organization

Religious or apostolic organizations ﬁling federal Form 1065 must

The unrelated business income of an exempt organization is subject

also ﬁle state Form IT-65.

to the AGI tax and must be reported on Form IT-20NP. If any part

of the gross income received by such an organization is used for the

The state partnership return is due on the fifteenth day of the fourth

private beneﬁt or gain of any member, trustee, shareholder, employee,

month following the close of the organization’s tax year.

or associate, the organization will not be granted an exemption.

The term “private beneﬁt or gain” does not include reasonable

Other Related Income Tax Filing

compensation paid to employees for work or services actually

performed.

Requirements of a Nonprofit Organization

To preserve the exemption, a speciﬁc group or organization

Utility Receipts Tax Form URT-1

cannot be organized or maintained for private gain or proﬁt.

IC 6-2.3-2-1 imposes a utility receipts tax of 1.4 percent on the

gross receipts from the retail sale of utility services. The utility

Charity Gaming Activities

services subject to tax include electrical energy, natural gas, water,

If your organization conducts bingo games, rafﬂes, charity game

steam, sewage, and telecommunications.

nights, or other games of chance, you need to know the licensing,

reporting, and withholding rules. Legal charity gaming is limited

Gross receipts are defined as the value received for the retail sale

to bingo; rafﬂes; door prizes; charity gaming nights; a festival

of utility services. If you have more than $1,000 in gross receipts

event; and the sale of pull tabs, punchboards, and tip boards. Each

from the sale of utility services, you might be required to file

of these activities requires notiﬁcation and/or licensing.

Form URT-1 (Utility Receipts Tax Return) in addition to the

annual Form IT-20 and 20NP. Refer to Commissioner’s Directive

All nonproﬁt organizations planning to conduct charity gaming

#18 at for further information.

activities must register with the Indiana Gaming Commission by

ﬁling Form CG-QA, Charity Gaming Qualiﬁcation Application.

The URT-1 return is due on the fifteenth day of the fourth month

Activities such as auctions, midway-style games, and games of

following the close of the taxpayer’s tax year.

skill are not regulated by the charity gaming law. Contact:

Indiana Gaming Commission

Utility Services Use Tax Form USU-103

101 W. Washington Street

Your organization might be subject to an excise tax of 1.4

East Tower, Suite 1600

percent on the consumption of utility services if you purchase

Indianapolis, IN 46204

utility services from outside Indiana and become the end user

317-23-BINGO (317-232-4646)

in Indiana. Utility services use tax (USUT) is due if the utility

Web address:

receipts tax is not payable by the seller. The person who consumes

the utility service in Indiana is liable for the USUT tax based on

the price of the purchase. Unless the seller of the utility service

is registered with the Department to collect the USUT on your

behalf, you must pay the tax on Form USU-103. For more

information refer to Commissioner’s Directive #32, available at

Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet - 2011 Page 4

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