Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet - 2012 Page 10
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22Please review the revised Schedule IT-20NOL and its instructions
from the ST-103 on this worksheet or on Form IT-20NP. You can
before entering an amount on line 11.
find additional information regarding sales/use tax for nonprofit
organizations in Sales Tax Information Bulletin #10
Line 12. Taxable Indiana unrelated business income – Subtract
( ) or by calling (317) 232-0129.
line 11 from line 10.
Line 17. Enter the total use tax and unrelated business income tax
Line 13. Total taxable income from other forms – Enter any
from lines 15 and 16.
income from Form 1120-POL.
Credits and Payment Computation
Line 14. Subtotal – Add line 12 and line 13.
Line 18. Enter the total amount of estimated quarterly income tax
payments made for the calendar year 2012 or for a fiscal tax year
Indiana adjusted gross income tax for taxable year – Multiply
beginning in 2012 and ending in 2012. Itemize each payment in
the amount on line 14 by 8 percent if not otherwise qualified
the spaces provided.
for a reduced rate of tax. (Note: Beginning on July 1, 2012, the
corporate tax rate began decreasing by 0.5% each year. It will
Line 19. Enter the total amount paid with valid extension.
decrease until July 1, 2015, when it will be 6.5%.)
Line 20. Enter the amount of prior-year overpayment credit.
Qualified taxable income derived from a designated Indiana
Military Base Enhancement Area (MBEA) is subject to tax at the
Line 21. Claim any other allowable tax liability credit by entering
rate of 5 percent. If line 14 is a loss figure, enter zero.
the name, credit ID code number, and amount. The total of
nonrefundable tax liability credit is limited to the amount of
If you qualify as an MBEA taxpayer under IC 6-3-2-1.5, complete
income tax on line 15, unless otherwise noted. If your claim
and enclose a copy of Schedule M, Alternate Adjusted Gross
exceeds the amount of your tax liability, you must adjust by
Income Tax Calculation and check question box K (Schedule
recalculating the credit to the amount you may apply. See the
M) on the front of Form IT-20NP. This form is available in the
section “Other Tax Liability Credits” on page 17. Refer to Income
current-year Indiana Corporate Income Tax Booklet, which can
Tax Information Bulletin #59 at for
be found online at
more information about Indiana tax credits available to taxpayers.
Enter the total computed adjusted gross income tax based on your
Also, this line may include a refundable Economic Development
Indiana taxable unrelated business income reported on line 14.
for a Growing Economy (EDGE) job retention credit. EDGE
credit information is listed on page 19. Note: A business is no
Summary of Calculations
longer required to have at least 35 employees to qualify for an
Line 16. IC 6-2.5-3-2 imposes a use tax at the rate of 7 percent on
EDGE credit for job retention.
the use, storage, and consumption of tangible personal property
in Indiana when sales tax was not paid at the point of purchase
A detailed explanation or supporting schedule must be enclosed
and no exemption from tax exists. Nonprofit organizations qualify
with the return for any credits claimed on line 21. If you have state
for exemption from use tax under the following conditions:
credit for withholding on Form WH-18, claim Indiana credit by
(1) The nonprofit organization is exempt from the gross retail
enclosing copy C with the return and using credit ID code 841 on
sales tax under IC 6-2.5-5-22 through 26; (2) The property
this line.
or service is used to further its nonprofit purpose; or (3) The
organization is not operated predominantly for social purposes.
Line 22. Add the total credits (lines 18 through 21). Note that
certain credits may not exceed the amount of tax liability on lines
Purchases of tangible personal property to be used by
15 and 16.
organizations operated predominately for social purposes are
subject to use tax. If more than 50 percent of the expenditures
Line 23. Balance of net tax due. If line 17 is greater than line 22,
are for or related to social activities such as food and beverage
enter the difference.
services, golf courses, swimming pools, dances, parties, and
Line 24. Enter the amount of calculated penalty for the
other similar social activities, the organization is considered to
be predominately operated for social purposes. In no instance
underpayment of income taxes from Schedule IT-2220. Enclose
will purchases for the private benefit of any member of the
a completed Schedule IT-2220, which is available from the
organization or any other individual, such as meals or lodging,
Department upon request. Corporations required to make
be eligible for exemption.
quarterly estimated payments are permitted to use the annualized
income installment method calculated in the manner provided by
If you are a registered merchant for Indiana, you must report
IRC Section 6655(e) as applied to the corporation’s adjusted gross
nonexempt purchases on Form ST-103, Indiana Sales/Use Tax
income tax liability. If using this method, please check the box on
Return. If you are not required to file Form ST-103, or have failed
this line and enclose a copy of your calculations when filing your
to properly include all taxable purchases on the ST-103 return,
tax return. The Department will review each request on a case-by-
complete the Sales/Use Tax Worksheet on page 2 of the return and
case basis.
report the tax due on this line. Caution: Do not report the totals
10
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