Indiana § 6-3-4-15.1 - Prescribe procedures

§ 6-3-4-15.1. Prescribe procedures

Sec. 15.1. For purposes of IC 6-3-4-12, IC 6-3-4-13, and IC 6-3-4-15, the department may:

(1) prescribe procedures by which a pass through entity remits tax on behalf of partners, shareholders, and beneficiaries who are considered residents for purposes of those sections in the same manner as tax is remitted for partners, shareholders, and beneficiaries who are considered nonresidents for purposes of those sections, provided that such procedures do not relieve filing requirements otherwise applicable to partners, shareholders, and beneficiaries who are considered residents for purposes of those sections;

(2) prescribe special procedures for persons or entities that are otherwise subject to withholding under those sections but who may have circumstances such that a standard tax computation may result in excess withholding;

(3) prescribe procedures for individuals and trusts that are residents for part of the taxable year and nonresidents for part of the taxable year;

(4) prescribe procedures by which an entity subject to those sections may request alternative withholding arrangements, provided that such arrangements do not jeopardize the tax otherwise due under IC 6-3 or IC 6-5.5; and

(5) prescribe procedures and guidelines by which a partner, shareholder, or beneficiary may elect to not be subject to withholding, in whole or in part, provided that:

(A) the election by the partner, shareholder, or beneficiary lists the conditions of the election and that the election is signed under penalty of perjury prior to the due date for the pass through entity to remit tax for the taxable year;

(B) the election states that partner, shareholder, or beneficiary has adequate funds to remit any tax due under this article or IC 6-5.5;

(C) the election provides any periods for which withholding is not required or is reduced;

(D) the election provides that the partner, shareholder, or beneficiary agree to be subject to the jurisdiction of the state of Indiana and shall be liable to file any returns otherwise due under this article or IC 6-5.5, including any composite and withholding returns, and to remit any tax otherwise due, including any interest or penalties due on any tax due;

(E) the election provides that the election is subject to department approval and that the department may revoke the election at any time for any reason; and

(F) the election is attached to the returns of the pass through entity and of the partner, shareholder, or beneficiary required under this article or IC 6-5.5.

A failure by the pass through entity to obtain an election for a taxable year or to attach the election to the pass through entity's return for a taxable year shall be treated as if the election was not made for the taxable year.

As added by P.L.159-2021, SEC.16. Amended by P.L.137-2022, SEC.40.