INDIANA — As the extension filing season approaches, the Indiana Department of Revenue is reminding businesses and tax preparers that all nonresident partners, shareholders, or beneficiaries must be included in pass-through entity composite returns, even if the entity is reporting a loss. Failure to do so will result in an automatic $500 penalty per pass-through entity.
How to Avoid Penalties
To avoid the penalty, filers should ensure that the number of nonresidents reported in the header of the return matches the total number of entity owners on Schedule Composite, Schedule PTET, and/or Schedule Composite-COR. The appropriate schedule(s) must also be included with the return and completed with the individual’s SSN or the corporation’s FEIN, regardless of whether the entity has income or a loss.
Additionally, partnerships and S corporations that have elected or intend to elect PTET for the 2025 tax year are required to make quarterly estimated payments. The payment due dates are April 21, 2025, June 20, 2025, September 22, 2025, and December 22, 2025.
District Offices Transition to Appointment-Only
In an effort to streamline services, nine Indiana Department of Revenue (DOR) district offices are transitioning to an appointment-only system, which will eliminate walk-in services. Appointments can be scheduled online and are available on Tuesdays and Thursdays. The Columbus, Muncie, Terre Haute, Kokomo, and Lafayette offices have already made the switch. The following offices will transition to appointment-only on September 2:
- Evansville
- Fort Wayne
- South Bend
