Indiana IN-PTET

This article provides a comprehensive guide to Indiana's IN-PTET Form, explaining what it is, how to file it, and offering detailed, line-by-line instructions for completing it.

The Indiana IN-PTET Form, officially titled the “Pass-Through Entity Tax Election,” is a document used by eligible partnerships and S corporations in Indiana to elect to be subject to the state’s Pass-Through Entity Tax (PTET). This tax allows pass-through entities to pay state income tax at the entity level, potentially reducing the federal tax burden on individual owners by allowing them to claim a federal deduction for state taxes paid at the entity level. The election, once made, is irrevocable for the taxable year it applies to, and the form must be filed with the Indiana Department of Revenue. The IN-PTET Form is applicable for taxable years beginning in 2022 and beyond, with specific instructions for filing based on the type of entity and the tax year in question. Entities must retain a signed copy of the form for their records as proof of their election.

How to File Indiana IN-PTET Form

To file the Indiana IN-PTET Form, an eligible partnership or S corporation must complete the form and submit it to the Indiana Department of Revenue either via mail or email. The mailing address is P.O. Box 7119, Indianapolis, IN 46207-7119, and the email address is [email protected]. The form must be filed for each taxable year the election applies to, and the election cannot be revoked once made for that year. Entities should ensure the form is accurately completed and retain a signed copy as proof of their election.

How to Complete Indiana IN-PTET Form Line-by-Line Instructions

How to Complete Indiana IN-PTET Form: Line-by-Line Instructions

Part One: Instructions

  • This section provides an overview of the form’s purpose and filing process. It clarifies that the form is for partnerships and S corporations electing to be subject to the Pass-Through Entity Tax (PTET).
  • Remember to mail the completed form to the designated address or email it to the provided email address. Retain a signed copy of the completed form for your records.

Part Two: Entity Information

  1. Entity Name: Enter the full legal name of the pass-through entity (partnership or S corporation) electing to pay the PTET.
  2. Federal Employer Identification Number (FEIN): Provide the entity’s FEIN.
  3. Entity Type: Check the applicable box to indicate whether the entity is a partnership or an S corporation.
  4. Taxable Year of Election:
    • Start Date: Enter the start date of the taxable year for which the election is being made, in MM/DD/YYYY format.
    • End Date: Enter the end date of the taxable year, also in MM/DD/YYYY format.
    • Note: Do not enter a start date for a taxable year beginning in 2021 or earlier, as the election is only applicable for tax years starting in 2022 or later.
  5. Resident Direct Owners’ Tax Computation: Indicate how the entity is computing the tax for resident direct owners by checking one of the following boxes:
    • Before Allocation and Apportionment: Select this option if the owner’s entire share of the entity’s income is subject to tax.
    • After Allocation and Apportionment: Select this option if only the portion of the owner’s income that is apportioned or allocated to Indiana is subject to tax.
    • No Resident Direct Partners or Shareholders: Select this option if the entity has no resident direct owners.

Part Three: Attestation

  1. Election Statement: This section includes a declaration that the entity elects to be subject to the Pass-Through Entity Tax under Indiana Code 6-3-2.1 for the taxable year. The election is irrevocable for the taxable year.
  2. Authorized Representative:
    • Signature: The authorized individual who can bind the entity must sign the form.
    • Date: Enter the date the form is signed.
    • Printed Name: Print the name of the authorized individual signing the form.
    • Title: Provide the title of the authorized individual (e.g., Partner, Manager, President, etc.).

Mailing Instructions

  • Mailing Address: Send the completed form to:
    • Indiana Department of Revenue
      P.O. Box 7119
      Indianapolis, IN 46207-7119
  • Email Submission: Alternatively, email the form to [email protected].

Additional Considerations

  1. Irrevocability of Election: Once the election is made for a taxable year, it cannot be revoked. Ensure that the decision to elect PTET is well-considered before submitting the form.
  2. Filing Requirements for Tax Years:
    • For tax years beginning in 2022, refer to specific instructions for Schedule Composite/Composite-COR.
    • For tax years beginning in 2023 or later, consult the instructions for filing Form IT-20S (S corporations) or Form IT-65 (partnerships).
  3. Retention of Records: Keep a signed copy of the form on file as proof of election in case of audit or verification by the Indiana Department of Revenue.
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