SOURCE: Page 9, line 31; (07)MO048008.9. -->
Page 9, between lines 31 and 32, begin a new paragraph and insert:
SOURCE: IC 6-3-4-4.1; (07)MO048008.6. -->
"SECTION 6. IC 6-3-4-4.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE DECEMBER 16, 2007]: 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) If an individual is not a citizen of the United States, the
individual shall include with the estimated tax the amounts
attributable to income that are excluded from the individual's
adjusted gross income:
(1) for a spouse under IC 6-3-1-3.5(a)(3);
(2) under IC 6-3-1-3.5(a)(4)(A);
(3) under IC 6-3-1-3.5(a)(4)(C); and
(4) under IC 6-3-1-3.5(a)(5)(A).
The individual shall indicate on the individual's estimated tax
returns that the individual is not a citizen of the United States.
(c) (d) 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) (e) 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.
(e) (f) 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) (e) or (g). (h). However, no penalty shall
be assessed as to any estimated payments of adjusted gross income tax
which equal or exceed:
twenty percent (20%) of the final tax liability for such taxable
year; the annualized income installment calculated under
subsection (e); 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) (g) The provisions of subsection (d) (e) 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) (h) 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;
before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten five thousand dollars ($10,000),
($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.
(h) (i) 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.
SOURCE: IC 6-3-4-8; (07)MO048008.7. -->
SECTION 7. IC 6-3-4-8 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2008]: Sec. 8. (a) Except as provided in
every employer making payments of
wages subject to tax under this article, regardless of the place where
such payment is made, who is required under the provisions of the
Internal Revenue Code to withhold, collect, and pay over income tax
on wages paid by such employer to such employee, shall, at the time of
payment of such wages, deduct and retain therefrom the amount
prescribed in withholding instructions issued by the department. The
department shall base its withholding instructions on the adjusted gross
tax rate for persons, of the employee,
on the total
rates of any
is subject to under
IC 6-3.5, and
on the total amount of exclusions the
is entitled to under IC 6-3-1-3.5(a)(3) and IC 6-3-1-3.5(a)(4). If the
employee is not a citizen of the United States, the employee shall:
(1) request withholding as if the employee were single,
regardless of the employee's actual marital status;
(2) request withholding as if the employee did not have
dependents, regardless of whether the employee actually has
(3) write "noncitizen" on the form prescribed by the
department to determine the employee's exemptions.
employer making payments of any wages:
(1) shall be liable to the state of Indiana for the payment of the tax
required to be deducted and withheld under this section and shall
not be liable to any
for the amount deducted
wages and paid over in
compliance or intended compliance with this section; and
(2) shall make return of and payment to the department monthly
of the amount of tax which under this article and IC 6-3.5 the
employer is required to withhold.
An employer shall pay taxes withheld under subsection
during a particular month to the department no later than thirty (30)
days after the end of that month. However, in place of monthly
reporting periods, the department may permit an employer to report and
pay the tax for:
(1) a calendar year reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed ten dollars ($10);
(2) a six (6) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed twenty-five dollars ($25);
(3) a three (3) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed seventy-five dollars ($75).
An employer using a reporting period (other than a monthly reporting
period) must file the employer's return and pay the tax for a reporting
period no later than the last day of the month immediately following
the close of the reporting period. If an employer files a combined sales
and withholding tax report, the reporting period for the combined
report is the shortest period required under this section, section 8.1 of
this chapter, or IC 6-2.5-6-1.
For purposes of determining whether an employee is subject
to taxation under IC 6-3.5, an employer is entitled to rely on the
statement of an employee as to the employee's county of residence as
represented by the statement of address in forms claiming exemptions
for purposes of withholding, regardless of when the employee supplied
the forms. Every employee shall notify the employee's employer within
five (5) days after any change in the employee's county of residence.
A county that makes payments of wages subject to tax under
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election
officer imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and
retain from the wages the amount prescribed in withholding
instructions issued by the department.
Every employer shall, at the time of each payment made by
the employer to the department, deliver to the department a return upon
the form prescribed by the department showing:
(1) the total amount of wages paid to the employer's employees;
(2) the amount deducted therefrom in accordance with the
provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom
in accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and
deducted therefrom in accordance with this section; and
(5) any other information the department may require.
Every employer making a declaration of withholding as provided in this
section shall furnish the employer's employees annually, but not later
than thirty (30) days after the end of the calendar year, a record of the
total amount of adjusted gross income tax and the amount of each
income tax, if any, imposed under IC 6-3.5, withheld from the
employees, on the forms prescribed by the department.
All money deducted and withheld by an employer shall
immediately upon such deduction be the money of the state, and every
employer who deducts and retains any amount of money under the
provisions of this article shall hold the same in trust for the state of
Indiana and for payment thereof to the department in the manner and
at the times provided in this article. Any employer may be required to
post a surety bond in the sum the department determines to be
appropriate to protect the state with respect to money withheld pursuant
to this section.
The provisions of IC 6-8.1 relating to additions to tax in case
of delinquency and penalties shall apply to employers subject to the
provisions of this section, and for these purposes any amount deducted
or required to be deducted and remitted to the department under this
section shall be considered to be the tax of the employer, and with
respect to such amount the employer shall be considered the taxpayer.
In the case of a corporate or partnership employer, every officer,
employee, or member of such employer, who, as such officer,
employee, or member is under a duty to deduct and remit such taxes
shall be personally liable for such taxes, penalties, and interest.
Amounts deducted from wages of an employee during any
calendar year in accordance with the provisions of this section shall be
considered to be in part payment of the tax imposed on such employee
for the employee's taxable year which begins in such calendar year, and
a return made by the employer under subsection
accepted by the department as evidence in favor of the employee of the
amount so deducted from the employee's wages. Where the total
amount so deducted exceeds the amount of tax on the employee as
computed under this article and IC 6-3.5, the department shall, after
examining the return or returns filed by the employee in accordance
with this article and IC 6-3.5, refund the amount of the excess
deduction. However, under rules promulgated by the department, the
excess or any part thereof may be applied to any taxes or other claim
due from the taxpayer to the state of Indiana or any subdivision thereof.
No refund shall be made to an employee who fails to file the
employee's return or returns as required under this article and IC 6-3.5
within two (2) years from the due date of the return or returns. In the
event that the excess tax deducted is less than one dollar ($1), no
refund shall be made.
(i) (j) This section shall in no way relieve any taxpayer employee
from the taxpayer's employee's obligation of filing a return or returns
at the time required under this article and IC 6-3.5, and, should the
amount withheld under the provisions of this section be insufficient to
pay the total tax of such taxpayer, employee, such unpaid tax shall be
paid at the time prescribed by section 5 of this chapter.
(j) (k) Notwithstanding subsection (b), (c), an employer of a
domestic service employee that enters into an agreement with the
domestic service employee to withhold federal income tax under
Section 3402 of the Internal Revenue Code may withhold Indiana
income tax on the domestic service employee's wages on the employer's
Indiana individual income tax return in the same manner as allowed by
Section 3510 of the Internal Revenue Code.
(k) (l) To the extent allowed by Section 1137 of the Social Security
Act, an employer of a domestic service employee may report and remit
state unemployment insurance contributions on the employee's wages
on the employer's Indiana individual income tax return in the same
manner as allowed by Section 3510 of the Internal Revenue Code.
(l) (m) The department shall adopt rules under IC 4-22-2 to exempt
an employer from the duty to deduct and remit from the wages of an
employee adjusted gross income tax withholding that would otherwise
be required under this section whenever:
(1) an employee has at least one (1) qualifying child, as
determined under Section 32 of the Internal Revenue Code;
(2) the employee is eligible for an earned income tax credit under
(3) the employee elects to receive advance payments of the earned
income tax credit under IC 6-3.1-21 from money that would
otherwise be withheld from the employee's wages for adjusted
gross income taxes; and
(4) the amount that is not deducted and remitted is distributed to
the employee, in accordance with the procedures prescribed by
the department, as an advance payment of the earned income tax
credit for which the employee is eligible under IC 6-3.1-21.
The rules must establish the procedures and reports required to carry
out this subsection.
(m) (n) A person who knowingly fails to remit trust fund money as
set forth in this section commits a Class D felony.".
SOURCE: Page 15, line 6; (07)MO048008.15. -->
Page 15, between lines 6 and 7, begin a new paragraph and insert:
SOURCE: ; (07)MO048008.19. -->
"SECTION 19. [EFFECTIVE JULY 1, 2007] IC 6-3-4-4.1, as
amended by this act, applies to taxable years beginning after
December 15, 2007.