The Indiana Form IN-MSID-A, officially titled “Motorsports Investment District Income – Entity,” is a specialized tax document designed for the unique financial ecosystem surrounding the Indianapolis Motor Speedway. This form serves as a crucial evidentiary record for race teams and associated entities that distribute prize money or other income derived from activities within the designated Motorsports Investment District (MID). Its primary function is to act similarly to a W-2 or 1099, but specifically for the racing industry in this district; it verifies the amount of income paid to a recipient and, more importantly, proves the exact amounts of Indiana state and local income taxes that were withheld from those payments. When a race team or commercial entity pays out winnings to drivers, crew members, or other businesses, they must withhold the appropriate taxes to satisfy state requirements. By providing this completed form to the recipient, the issuer allows that individual or business to claim those withheld amounts as a credit on their own annual tax return, ensuring they are not taxed twice on the same earnings and helping the Indiana Department of Revenue accurately track the economic impact of the motorsports district.
How To File Form Indiana IN-MSID-A
The filing process for Form IN-MSID-A involves two distinct steps: distribution to the recipient and submission to the state. As the issuer (typically a race team), you must provide a completed copy of this form to every individual or entity from whom you withheld tax on prize money or MID-related income. This copy enables the recipient to attach it to their personal or business state income tax return (such as Form IT-40 or IT-20) to substantiate their tax credits. Simultaneously, you must ensure that the information on this form is reported to the Indiana Department of Revenue. This is generally done annually, often accompanying your annual withholding reconciliation filings, to ensure the state’s records match the credits being claimed by the recipients.
How To Complete Indiana IN-MSID-A Form
ISSUER’S Name, Street Address, City Or Town, State, ZIP Code
In the top-left section, enter the full legal name and complete mailing address of the entity that is issuing the payment. This is typically the race team or business organization that originally withheld the taxes from the prize money.
ISSUER’S FEIN
Directly below the issuer’s name block, provide the Federal Employer Identification Number (FEIN) of the issuing entity. This nine-digit number ensures the tax authorities can correctly link the form to your business tax accounts.
RECIPIENT’S FEIN Or SSN
In the box to the right of the issuer’s FEIN, enter the taxpayer identification number for the person or entity receiving the income. This will be either a Federal Employer Identification Number (FEIN) for a business recipient or a Social Security Number (SSN) for an individual recipient.
RECIPIENT’S Name, Street Address, City Or Town, State, ZIP Code
In the large block on the left side, accurately type or print the full name and current address of the individual or entity who received the income. Ensure this matches the information used on their tax return to prevent processing delays.
1. State Income
In Box 1, report the total gross amount of income earned by the recipient from sources within the Motorsports Investment District. This is the amount before any taxes or deductions were taken out.
2. State Income Tax Withheld
In Box 2, enter the specific dollar amount of Indiana state income tax that you withheld from the gross income reported in Box 1. This figure represents the credit the recipient will claim on their state tax return.
3. Indiana State ID Number
In Box 3, provide the 10-digit Indiana Taxpayer Identification Number (TID) associated with the issuer’s withholding account. This number identifies your specific state tax account to the Department of Revenue.
4. Local Income
In Box 4, list the portion of the gross income from Box 1 that is subject to local county taxes. In most cases involving the Motorsports Investment District, this figure will be identical to the amount entered in Box 1.
5. Indiana County Code
In Box 5, enter the two-digit code corresponding to the Indiana county where the tax was withheld. Since the Motorsports Investment District is located in Marion County, this code is typically “49,” but you should verify the correct county jurisdiction for the specific activity.
6. Local Income Tax Withheld
In Box 6, record the exact amount of county or local income tax that was withheld from the payment. This amount allows the recipient to claim credit for local taxes paid.
CORRECTED (If Checked)
Mark this checkbox only if you are filing this form to amend or fix errors on a previously filed Form IN-MSID-A.
VOID (If Checked)
Select this checkbox if you need to cancel a previously issued form entirely, effectively treating it as if it were never filed.