Estimated payments; declaration of estimated tax; electronic funds
transfer
Sec. 4.1. (a) This section applies to taxable years beginning after
December 31, 1993.
(b) Any individual required by the Internal Revenue Code 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, 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 amount of the
adjusted gross income tax imposed by this article for the taxable
year, minus the amount which the individual estimates as the sum of
any credits against the tax provided by IC 6-3-3.
(c) 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 section 8 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 four hundred dollars ($400). 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).
(d) 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 twenty-five percent (25%) of such
corporation's estimated adjusted gross income tax liability for the
taxable year. 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.
(e) The penalty 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 (d) or (g). However, no penalty shall be
assessed as to any estimated payments of adjusted gross income tax
which equal or exceed:
(1) twenty percent (20%) of the final tax liability for such
taxable year; 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.
(f) The provisions of subsection (d) 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 one thousand dollars ($1,000) for its taxable
year.
(g) 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, before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten thousand dollars ($10,000), 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.
(h) 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.
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.
Last modified: May 28, 2006