Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet - 2012 Page 4
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22The tax return on unrelated business income (Form IT-20NP) and
Form URT-1 (Utility Receipts Tax Return) in addition to the
annual report (Form NP-20) are due on the fifteenth day of the fifth
annual Form IT-20 and 20NP. Refer to Commissioner’s Directive
month following the close of the organization’s tax year. The URT-1
#18 at for further information.
tax return is due on the fifteenth day of the fourth month following
The URT-1 return is due on the fifteenth day of the fourth month
the close of the organization’s tax year.
following the close of the taxpayer’s tax year.
Homeowner’s Association
Utility Services Use Tax Form USU-103
(IRC section 831)
State Return(s) to File
Your organization might be subject to an excise tax of 1.4
Filing Form 1120-H, file
Form IT-20
percent on the consumption of utility services if you purchase
utility services from outside Indiana and become the end user
in Indiana. Utility services use tax (USUT) is due if the utility
A condominium management, residential real estate
receipts tax is not payable by the seller. The person who consumes
management, or timeshare association is subject to tax as a
the utility service in Indiana is liable for the USUT tax based on
corporation if it elects to be treated as a homeowner’s association.
the price of the purchase. Unless the seller of the utility service
These are not considered nonprofit organizations for Indiana
is registered with the Department to collect the USUT on your
tax purposes. Therefore, they must file as for-profit corporations
behalf, you must pay the tax on Form USU-103. For more
using Form IT-20.
information, refer to Commissioner’s Directive #32, available at
.
The state tax return is due on the fifteenth day of the fourth month
following the close of the entity’s tax year.
The USU-103 return is due monthly by the thirtieth day following
the end of each month.
Political Organization
(IRC section 527)
State Return(s) to File
Accounting Methods and Taxable Year
Filing federal Form 1120-POL, file
Form IT-20
The Department requires the use of the method of accounting
that is used for federal income tax purposes. The taxable year
for the unrelated business income tax must be the same as the
Political organizations filing federal Form 1120POL or 1120H are
accounting period adopted for federal adjusted gross income tax
not considered nonprofit organizations. They must file as regular
purposes. If the apportionment provisions do not fairly reflect
corporations on Form IT-20.
the organization’s Indiana income, the taxpayer must petition the
Department for permission to use an alternative method.
The state tax return is due on the fifteenth day of the fourth month
following the close of the organization’s tax year.
Due Date for Filing Form IT-20NP
The Form IT-20NP return is due on or before the fifteenth day of
Religious or Apostolic Organization
the fifth month following the close of the tax year.
(exempt under section 501(d))
State Return(s) to File
When an organization does not file a federal return pursuant to
Filing federal Form 1065, file
Form IT-65
the Internal Revenue Code, its tax year shall be the calendar year
unless permission is otherwise granted.
Religious or apostolic organizations filing federal Form 1065 must
also file state Form IT-65.
Exempt Organization
The unrelated business income of an exempt organization is
The state partnership return is due on the fifteenth day of the fourth
subject to the AGI tax and must be reported on Form IT-20NP.
month following the close of the organization’s tax year.
If any part of the gross income received by such an organization
is used for the private benefit or gain of any member, trustee,
Other Related Income Tax Filing
shareholder, employee, or associate, the organization will not be
granted an exemption. The term “private benefit or gain” does not
Requirements of a Nonprofit Organization
include reasonable compensation paid to employees for work or
services actually performed.
Utility Receipts Tax Form URT-1
IC 6-2.3-2-1 imposes a utility receipts tax of 1.4 percent on the
To preserve the exemption, a specific group or organization
gross receipts from the retail sale of utility services. The utility
cannot be organized or maintained for private gain or profit.
services subject to tax include electrical energy, natural gas, water,
steam, sewage, and telecommunications.
Charity Gaming Activities
If your organization conducts bingo games, raffles, charity game
Gross receipts are defined as the value received for the retail sale
nights, or other games of chance, you need to know the licensing,
of utility services. If you have more than $1,000 in gross receipts
reporting, and withholding rules. Legal charity gaming is limited
from the sale of utility services, you might be required to file
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