Trusts or estates; distribution of income to nonresident
beneficiaries; deduction, retention, and pay over of tax due;
returns required
Sec. 15. (a) A trust or estate shall, at the time that it distributes
income (except income attributable to interest or dividends) to a
nonresident beneficiary, deduct and retain therefrom the amount
prescribed in the withholding instructions referred to in section 8 of
this chapter. The trust or estate so distributing income to a
nonresident beneficiary:
(1) is liable to this state for the tax which it is required to deduct
and retain under this section and is not liable to the beneficiary
for the amount deducted from the distribution and paid to the
department in compliance, or intended compliance, with this
section; and
(2) shall pay the amount deducted to the department before the
thirtieth day of the month following the distribution, unless an
earlier date is specified by section 8.1 of this chapter.
(b) A trust or estate shall, at the time that it makes a payment to
the department under this section, deliver to the department a return
which shows the total amounts distributed to the trust's or estate's
nonresident beneficiaries, the amount deducted from the distributions
under this section, and any other information required by the
department. The trust or estate shall file the return on the form
prescribed by the department. A trust or estate which makes the
deduction and retention required by this section shall furnish to its
nonresident beneficiaries annually, but not later than thirty (30) days
after the end of the trust's or estate's taxable year, a record of the
amount of tax deducted and retained from the beneficiaries. The trust
or estate shall furnish the information on the form prescribed by the
department.
(c) The money deducted and retained by a trust or estate under
this section is money of this state. Every trust or estate which deducts
and retains any money under this section shall hold the money in
trust for this state until it pays the money to the department in the
manner and at the time provided in this section. The department may
require a trust or estate to post a surety bond to protect this state with
respect to money deducted and retained by the trust or estate under
this section. The department shall determine the amount of the surety
bond.
(d) The provisions of IC 6-8.1 relating to penalties or to additions
to tax in case of a delinquency apply to trusts and estates which are
subject to this section. For purposes of this subsection, any amount
deducted, or required to be deducted and remitted to the department,
under this section is considered the tax of the trust or estate, and with
respect to that amount, it is considered the taxpayer.
(e) Amounts deducted from distributions to nonresident
beneficiaries under this section during a taxable year of the trust or
estate are considered a partial payment of the tax imposed on the
nonresident beneficiary for his taxable year within or with which the
trust's or estate's taxable year ends. The department shall accept a
return made by the trust or estate under subsection (b) as evidence of
the amount of tax deducted from the income distributed to a
nonresident beneficiary.
(f) This section does not relieve a nonresident beneficiary of his
duty to file a return at the time required under IC 6-3. The
nonresident beneficiary shall pay any unpaid tax at the time
prescribed by section 5 of this chapter.
As added by Acts 1977(ss), P.L.4, SEC.13. Amended by Acts 1979,
P.L.68, SEC.6; Acts 1982, P.L.49, SEC.6; P.L.2-1982(ss), SEC.12.
Last modified: May 28, 2006