The Indiana Form MF-135 is a formal financial document known as an “Irrevocable Standby Letter of Credit.” It serves as a guarantee of payment to the Indiana Department of Revenue. Typically used by businesses dealing in gasoline or special fuels, this form is issued by a bank on behalf of a taxpayer (the Applicant). Its purpose is to secure the payment of taxes, penalties, and interest that the taxpayer may owe. If the taxpayer fails to pay these obligations after receiving a pre-warrant notice, the Department of Revenue can “draw” upon this letter of credit to collect the funds directly from the bank. Essentially, it acts as a security bond to ensure the state receives its due tax revenue.
How To File Indiana MF-135 Form
This form is not filled out by the taxpayer alone; it requires significant involvement from a financial institution. The taxpayer (Applicant) must arrange for their bank (Issuing Bank) to complete and sign the document. Once the bank has issued the Letter of Credit, it must be notarized. The original, completed document should then be submitted to the Indiana Department of Revenue. The form includes provisions for automatic renewal each year unless the bank provides specific written notice to cancel it.
How to Complete Indiana MF-135 Form
Instructions For The Header Section
Applicant Information
Enter the full legal name of the taxpayer applying for the credit in the “Applicant’s Name” field. You must also provide the “Applicant’s License Account Number” for Gasoline or Special Fuel.
Bank Information
Enter the full name, address, and telephone number of the Issuing Bank. You must also include the bank’s Federal Employer Identification Number (FEIN).
Letter of Credit Details
The bank must assign a unique “Irrevocable Standby Letter of Credit Number” and enter it in the designated space. Additionally, specify the “Effective Date” and the “Expiration Date” of the credit.
Instructions For The Body Of The Letter
Issuing Statement
The form contains a statement where the bank officially issues the credit. In the blanks provided, enter:
- The name of the Issuing Bank.
- The name and address of the Applicant (the taxpayer).
- The total dollar amount of the credit, written out in both numbers and words (e.g., “$50,000” and “Fifty Thousand”).
Drafting Clause
This section specifies how the state can collect the money. Fill in the name of the Issuing Bank and the Applicant’s Name in the clause: “drawn under [Issuing Bank Name] Letter of Credit for [Applicant’s Name].”
Certification of Non-Payment
This part outlines the conditions under which the state can draw funds. You must specify:
- The Applicant’s name again.
- The specific “Type of Tax” covered (e.g., Gasoline Tax).
- The “Indiana Code Reference” that authorizes the tax.
- The maximum “Aggregate Amount” that can be drawn, which should match the total amount of the letter of credit.
Renewal And Cancellation Terms
Automatic Renewal
The form states that the Letter of Credit will automatically renew for one-year periods. No action is needed to renew.
Cancellation Notice
If the bank chooses not to renew, they must notify the Indiana Department of Revenue by certified mail at least 180 days before the expiration date. In the blanks provided for this section, simply re-enter the name of the Issuing Bank.
Instructions For Execution And Notarization
Bank Authorization
The form must be signed by an authorized officer of the bank. Enter the date of signing.
- Issuing Bank: Print the bank’s name.
- By: The bank officer must sign their name.
- Officer of Bank: Print the officer’s name.
- Title: Print the officer’s official job title.
Notary Acknowledgement
This section is for the Notary Public. They will complete the “State of” and “County of” fields. The Notary must witness the bank officer’s signature and then sign and seal the document themselves, verifying the date and their commission expiration date. The name of the bank officer who appeared before the notary must be written in the “personally appeared by” line.