Sec. 18. (a) If a partnership or tiered partner is required to issue a report, issue an amended statement, or issue other information to a partner, owner, or beneficiary under this chapter, and does not issue such report, statement, or information within the period such issuance is required under this chapter, the partnership or tiered partner shall be liable for any tax that otherwise may be due from the partner, owner, or beneficiary, notwithstanding any other provision in IC 6-3 or IC 6-5.5. The tax rate under this section shall be computed at the highest rate for the taxable year under:

(1) IC 6-3-2-1(a), plus the highest rate imposed in any county under IC 6-3.6;

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Terms Used In Indiana Code 6-3-4.5-18

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(2) IC 6-3-2-1(b); or

(3) IC 6-5.5-2-1;

unless the partnership or tiered partner can establish that a lower rate should apply, the partnership or tiered partner has made an election to be subject to tax under sections 6, 8, or 9 of this chapter, or to the extent the partnership, tiered partner, or the department can determine that the tax was otherwise properly reported and remitted. Such tax shall be considered to be due on the due date of the partnership’s or tiered partner’s return for the taxable year, determined without regard to extensions.

     (b) If a partnership or tiered partner issues the report, amended statement, or other information:

(1) to an address that the partnership or tiered partner knows or reasonably should know is incorrect; or

(2) if the report, amended statement, or other information not described in subdivision (1) is returned and the partnership or tiered partner:

(A) fails to take reasonable steps to determine a proper address for reissuance within thirty (30) days after the report, amended statement, or other information is returned; or

(B) takes such steps and fails to reissue the report, amended statement, or other information to a proper address within thirty (30) days after the report, amended statement, or other information is returned;

such report, amended statement, or other information shall be considered to have not been issued for purposes of this section.

     (c) The department may issue a proposed assessment under this section not later than three (3) years after the department receives a return or amended return from the partnership or tiered partner for which the partnership or tiered partner fails to issue reports, amended statements, or other information, or from the date a partnership is required to issue partner level adjustments reports to its partners.

     (d) If:

(1) a direct or indirect partner files and remits the tax otherwise due under this section, the assessment to the partnership or tiered partner under this section shall be reduced by the portion of the tax attributable to the direct or indirect partner; and

(2) a partnership or tiered partner files and remits the tax under this section, such tax shall be treated as payment of tax to the direct or indirect partners. However, in no event shall the direct or indirect partners be permitted a refund of tax paid by a partnership or tiered partner under this section unless otherwise permitted under this chapter or IC 6-8.1-9-1.

     (e) Nothing in this section shall be construed to relieve a partnership or tiered partner from any duty to issue a report, amended statement, or other information otherwise required under this chapter or under any other provision of IC 6-3 or IC 6-5.5. If a partnership or tiered partner issues a report, amended statement, or other information provided under this chapter after the date otherwise required for issuance, the department may grant relief to any tiered partner, direct partner, or indirect partner affected by the late issuance, including extension of applicable deadlines.

As added by P.L.159-2021, SEC.18. Amended by P.L.137-2022, SEC.50; P.L.138-2022, SEC.8; P.L.178-2022(ts), SEC.9; P.L.201-2023, SEC.99.