Indiana DP-1

This article provides a detailed step-by-step guide on completing the Indiana Form DP-1 for Direct Payment Authorization, allowing businesses to remit use tax directly to the state.

Indiana Form DP-1 (State Form 22917) is an application used by businesses to apply for a Direct Payment Authorization permit from the Indiana Department of Revenue. This permit allows retail merchants, who are registered to collect sales and use tax, to remit use tax directly to the state instead of paying sales tax to suppliers. Direct Payment Permits are issued under specific conditions, such as the regular purchase of substantial quantities of tangible personal property, which may be used for either exempt or nonexempt purposes. This system ensures that merchants can manage their tax responsibilities more efficiently by reporting and paying use tax on applicable transactions directly to the state.

How to File Indiana Form DP-1

To file the Indiana Form DP-1, you must be a registered retail merchant with the Indiana Department of Revenue. Each business location must submit a separate application. The completed application must be signed and sent to the Indiana Department of Revenue. Ensure all required information is filled out accurately to avoid delays or rejections. Once approved, the direct payment permit allows businesses to file and pay use tax directly, rather than paying sales tax to their suppliers.

How to Complete Indiana Form DP-1 Line-by-Line Instructions

How to Complete Indiana Form DP-1: Line-by-Line Instructions

Section 1: Business Information

  1. Federal Identification Number (9 digits)
    • Line 1: Enter your business’s Federal Identification Number (FEIN), a 9-digit number issued by the IRS.
  2. Indiana Taxpayer Identification Number (TID) (10 digits)
    • Line 2: Enter your Indiana Taxpayer Identification Number (TID), a 10-digit number provided by the Indiana Department of Revenue.
  3. Location Number (3 digits)
    • Line 3: Provide your 3-digit business location number. Each business location requires a separate application.
  4. Business Entity Legal Name
    • Line 4: Enter the legal name of your business entity (for sole proprietors, list the last name followed by the first name).
  5. DBA (Doing Business As)
    • Line 5: Enter your business’s “Doing Business As” (DBA) name, if applicable.
  6. Mailing Address
    • Line 6: Provide your business’s mailing address, including the city, state, and ZIP code.
  7. Location Address (if different)
    • Line 7: If your business location address is different from the mailing address, provide the physical location address here.
  8. City, State, Zip Code
    • Line 8: Enter the city, state, and ZIP code of your business location.

Section 2: Description of Tangible Personal Property

  1. Description of Tangible Personal Property to be Purchased
    • Line 9: Describe the tangible personal property that will be purchased under the Direct Payment Permit. This could include items like equipment, inventory, or other taxable goods that will be used for business purposes.

Section 3: Certification and Signature

  1. Certification of Information
  • Line 10: Read the certification statement, which confirms that the information provided is accurate. You are also agreeing to report and pay Indiana use tax on any nonexempt transactions that were made using a direct payment certificate.
  1. Signature of Authorized Signer
  • Line 11: The business owner or authorized signatory must sign the application to certify the accuracy of the information. Include your title (e.g., owner, officer) next to your signature.
  1. Date of Signature
  • Line 12: Enter the date (in mm/dd/yyyy format) when the application is signed.
  1. Printed Name of Authorized Signer
  • Line 13: Provide the printed name of the authorized signer who completed the form.
  1. Telephone Number
  • Line 14: Enter a contact telephone number for any questions regarding the application.
  1. Email Address
  • Line 15: Enter the email address where you can be contacted regarding your direct payment permit application.

Additional Information Regarding Direct Payment Permits

  • Eligibility Requirements: You must be a registered retail merchant with the Indiana Department of Revenue to apply for a Direct Payment Authorization. The taxpayer must regularly purchase substantial quantities of tangible personal property that may be used for both exempt and nonexempt purposes.
  • Conditions for Issuance: The permit is issued only if the taxpayer cannot reasonably determine the exempt or nonexempt use of the property at the time of purchase and agrees to maintain adequate records.
  • Revocation: Direct payment authorization can be revoked at any time by the department. Also, the authorization will be revoked if your Registered Retail Merchant Certificate expires.
  • Restrictions: Direct payment authorization cannot be used for the purchase of utilities, motor vehicles requiring licensing, or property purchased in Indiana for storage in Indiana but used outside the state.
  • Use Tax Reporting: Tax due must be reported and paid monthly on Form ST-103.
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