Section 6-3-4-4.1 - Estimated payments; declaration of estimated tax; electronic funds transfer(a) Any individual required by the Internal Revenue Code or this section to file estimated tax returns and to make payments on account of such estimated tax shall file estimated tax returns and make payments of the tax imposed by this article to the department at the time or times and in the installments as provided by Section 6654 of the Internal Revenue Code. However, the following apply to estimated tax returns filed and payments made under this subsection: (1) In applying Section 6654 of the Internal Revenue Code for the purposes of this article, "estimated tax" means the amount which the individual estimates as the sum of the amount of the adjusted gross income tax imposed by this article for the taxable year and the sum of the amount of local income tax under IC 6-3.6, minus the amount which the individual estimates as the sum of any credits against the tax provided by IC 6-3-3, IC 6-3.1, and IC 6-3.6, other than the amounts of tax withheld under this chapter.(2) Estimated tax for a nonresident alien (as defined in Section 7701 of the Internal Revenue Code) must be computed by applying not more than one (1) exclusion under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4), regardless of the total number of exclusions that IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4) permit the taxpayer to apply on the taxpayer's final return for the taxable year.(b) Every individual who has adjusted gross income subject to the tax imposed by this article and from which tax is not withheld under the requirements of this chapter shall make a declaration of estimated tax for the taxable year. However, no such declaration shall be required if the estimated tax can reasonably be expected to be less than one thousand dollars ($1,000). In the case of an underpayment of the estimated tax as provided in Section 6654 of the Internal Revenue Code, there shall be added to the tax a penalty in an amount prescribed by IC 6-8.1-10-2.1(b).(c) Every corporation subject to the adjusted gross income tax liability imposed by this article shall be required to report and pay an estimated tax equal to the lesser of: (1) twenty-five percent (25%) of such corporation's estimated adjusted gross income tax liability for the taxable year; or(2) the annualized income installment calculated in the manner provided by Section 6655(e) of the Internal Revenue Code as applied to the corporation's liability for adjusted gross income tax. A taxpayer who uses a taxable year that ends on December 31 shall file the taxpayer's estimated adjusted gross income tax returns and pay the tax to the department on or before April 20, June 20, September 20, and December 20 of the taxable year. If a taxpayer uses a taxable year that does not end on December 31, the due dates for filing estimated adjusted gross income tax returns and paying the tax are on or before the twentieth day of the fourth, sixth, ninth, and twelfth months of the taxpayer's taxable year. The department shall prescribe the manner and forms for such reporting and payment.
(d) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b) shall be assessed by the department on corporations failing to make payments as required in subsection (c) or (f). However, no penalty shall be assessed as to any estimated payments of adjusted gross income tax which equal or exceed: (1) the amount calculated under subsection (c); or(2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year. In addition, the penalty as to any underpayment of tax on an estimated return shall only be assessed on the difference between the actual amount paid by the corporation on such estimated return and twenty-five percent (25%) of the corporation's final adjusted gross income tax liability for such taxable year. A payment required to be made in the manner prescribed in subsection (f), but not paid in such a prescribed manner, shall be subject to the penalty provided in IC 6-8.1-10-2.1(b)(5).
(e) The provisions of subsection (c) requiring the reporting and estimated payment of adjusted gross income tax shall be applicable only to corporations having an adjusted gross income tax liability which, after application of the credit allowed by IC 6-3-3-2 (repealed), shall exceed two thousand five hundred dollars ($2,500) for its taxable year.(f) If the department determines that a corporation's:(1) estimated quarterly adjusted gross income tax liability for the current year; or(2) average estimated quarterly adjusted gross income tax liability for the preceding year; exceeds five thousand dollars ($5,000), after the credit allowed by IC 6-3-3-2 (repealed), the corporation shall pay the estimated adjusted gross income taxes due by electronic funds transfer (as defined in IC 4-8.1-2-7) or by delivering in person or overnight by courier a payment by cashier's check, certified check, or money order to the department. The transfer or payment shall be made on or before the date the tax is due.
(g) If a corporation's adjusted gross income tax payment is made by electronic funds transfer, the corporation is not required to file an estimated adjusted gross income tax return.(h) An individual filing an estimated tax return and making an estimated tax payment under this section must designate: (1) the portion of the estimated tax payment that represents estimated state adjusted gross income tax liability; and(2) the portion of the estimated tax payment that represents estimated local income tax liability under IC 6-3.6. The department shall adopt guidelines and issue instructions as necessary to assist individuals in making the designations required by this subsection.
(i) For a corporation required to make estimated payments under this section: (1) if a corporation has a current taxable year or a previous taxable year that is less than twelve (12) months, the penalty under this section shall be computed in a manner consistent with Section 6655 of the Internal Revenue Code, including regulations promulgated thereunder; and(2) the department may adopt rules or issue guidelines related to the application of payments withheld on behalf of the corporation under this chapter or IC 6-5.5-2-8.Amended by P.L. 159-2021,SEC. 12, eff. 7/1/2021.Amended by P.L. 197-2016, SEC. 24, eff. 1/1/2017.As added by P.L. 278-1993 (ss), SEC.23. Amended by P.L. 18-1994, SEC.9; P.L. 19-1994, SEC.8; P.L. 85-1995, SEC.10; P.L. 8-1996, SEC.5; P.L. 260-1997 (ss), SEC.51; P.L. 28-1997, SEC.14; P.L. 2-1998, SEC.32; P.L. 192-2002 (ss), SEC.80; P.L. 1-2003, SEC.36; P.L. 269-2003, SEC.9; P.L. 211-2007, SEC.24; P.L. 131-2008, SEC.15; P.L. 146-2008, SEC.319; P.L. 1-2009, SEC.50.