Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet

Instructions for Completing

quarterly estimated IT-6 returns. For further instructions, refer to

Information Bulletin #11 at

Form IT-20NP

Penalty for Underpayment of Estimated Taxes

Filing Period and Identiﬁcation

Organizations estimating their income taxes are subject to

a 10 percent underpayment penalty if they fail to timely ﬁle

File a 2012 Form IT-20NP return for a taxable year ending

estimated tax payments or fail to remit a sufﬁcient amount. To

Dec. 31, 2012, a short tax year beginning in 2012 and ending in

avoid the penalty, the required quarterly estimated payments

2012, or a ﬁscal tax year beginning in 2012 and ending in 2013.

must be at least 20 percent of the total income tax liability for

For a short or ﬁscal tax year, at the top of the form ﬁll in the

the current taxable year or 25 percent of the organization’s ﬁnal

beginning month and day and the ending date of the taxable year.

income tax liability for the previous tax year. The penalty for

the underpayment of estimated tax is assessed on the difference

The identiﬁcation section of the return must be completed

between the actual amount paid by the organization for each

regarding the tax year, name, address, county, date organized,

quarter and 25 percent of its ﬁnal income tax liability for the

federal identiﬁcation number, business activity code number,

current tax year. Refer to the instructions for Schedule IT-2220,

and telephone number. Please use the full legal name of the

Penalty for the Underpayment of Corporate Income Taxes, which

organization and its current mailing address.

is available online at

For foreign addresses, please note the following:

Use Schedule IT-2220 to show an exception to the penalty if the

•

Be sure to enter the name of the city, town, or village in

nonproﬁt organization underpaid its income tax for any quarter. If

the box labeled City;

an exception to the penalty is not met, payment of the computed

•

Be sure to enter the name of the state or province in the

penalty must be included with the return. The required estimate

box labeled State; and

should exceed the annualized income installment calculated in

•

Be sure to enter the postal code and the 2-digit country

the manner provided by IRC Section 6655(e) as applied to the

code in the box labeled ZIP Code.

corporation’s liability or 25 percent of the final tax liability for the

prior taxable year. If either of these conditions is met, no penalty

For a name change, check the box at the top of the return and

will be assessed for the estimated period.

enclose copies of the amended Articles of Incorporation 4162 or

Amended Certiﬁcate of Authority ﬁled with the Indiana Secretary

Electronic Funds Transfer Requirements

of State with the return. The federal identiﬁcation number

A nonproﬁt organization’s quarterly estimated tax must be

shown in the box in the upper-right corner of the return must be

remitted by EFT if the amount of tax on unrelated business

accurate and the same as used for federal purposes.

income of the organization exceeds an average liability of $5,000

per quarter (or $20,000 annually). Because there is no minimum

Enter the number of your business activity code in the designated

amount of payment, the Department encourages all taxpayers not

box under the federal identiﬁcation number. Use the six-digit

required to remit by EFT to participate voluntarily in our EFT

principal business activity code derived from the North American

program.

Industry Classiﬁcation System (NAICS), as reported on your

federal (Form 990-T) income tax return. You can find a listing of

Note: Taxpayers remitting by EFT should not ﬁle quarterly IT-6

these codes online at

coupons. The amounts are reconciled when ﬁling the annual

income tax return.

Other Unrelated Business Activity numbers that might be

applicable:

If the Indiana Department of Revenue notiﬁes an organization of

900000

Unrelated debt-ﬁnanced activities (other than

its requirement to remit by EFT, the organization must:

rental or real estate)

1. Complete and submit the EFT Authorization Agreement

900001

Investment Activities by Section 501(c) (7), (9), or

(Form EFT-1); and

(17) organizations

2. Begin remitting tax payments via EFT by the date/tax

900002

Rental of tangible personal property

period speciﬁed by the Department.

900003

Passive income activities with controlled

organizations

Failure to comply will result in a 10 percent penalty on each

900004

Exploited exempt activities

quarterly estimated income tax liability not sent by EFT. Note:

999999

Unclassiﬁed establishments (unable to classify)

The Indiana Code does not require the extension of time to

ﬁle payment or ﬁnal payment due with the annual return to be

A condensed list is published as part of the Indiana Business Tax

paid by EFT. You must be certain to claim any EFT payment as

Application, Form BT-1. This form is available online at

an extension or estimated payment credit. Do not ﬁle a return

indicating an amount due if you have paid, or will pay, any

remaining balance by EFT.

If you determine you meet the requirements to remit by EFT,

contact the Department’s EFT Section, by calling (317) 232-5500.

Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet - 2012 Page 6

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