Partnerships; grantor or beneficiary of a trust; information
return; withholding
Sec. 8. (a) If a corporation is:
(1) transacting the business of a financial institution (as defined
in IC 6-5.5-1-17(d)); and
(2) is a partner in a partnership or the grantor and beneficiary of
a trust transacting business in Indiana and the partnership or
trust is conducting in Indiana an activity or activities that would
constitute the business of a financial institution if transacted by
a corporation;
the corporation is a taxpayer under this article and shall, in
calculating the corporation's tax liability under this article, include
in the corporation's adjusted or apportioned income the corporation's
percentage of the partnership or trust adjusted gross income or
apportioned income.
(b) A partnership or trust covered by subsection (a):
(1) shall file an information return on an appropriate schedule,
with capital and operating losses, modifications, and credits
required by this article and any other items specified in the
return form by the department. If the taxpayer is a nonresident,
or is a member of a unitary group with nonresident members
filing a combined return, the return must show the
apportionment percentage and supporting amounts necessary to
compute the tax under IC 6-5.5-4. A partner's percentage share
of the receipts of a taxpayer, for the purpose of apportionment,
shall be calculated by using the partner's share of the
partnership adjusted gross income;
(2) is subject to the provisions of IC 6-5.5-7-3 relating to
taxpayers and IC 6-5.5-7-4 relating to persons when filing the
information return; and
(3) shall withhold from all nonresident corporate partners or
beneficiaries an amount prescribed in withholding instructions
issued by the department. The amount required to be withheld
shall be based upon the rate of tax prescribed in IC 6-5.5-2,
unless the partner or beneficiary provides the partnership or
trust with a written declaration that the partner or beneficiary is
not subject to the tax. In such a case the amount withheld shall
be the amount prescribed in the withholding instructions issued
by the department based upon the Indiana adjusted gross
income tax rates. The department shall issue procedures and
directions for the withholding required by this subsection that
are similar to those contained in IC 6-3-4 concerning the
withholding of taxes.
As added by P.L.21-1990, SEC.26. Amended by P.L.68-1991, SEC.9.
Last modified: May 28, 2006