New Indiana Tax Laws Affect Non Profits
The Indiana General Assembly recently passed new legislation affecting nonprofit organizations. New laws affecting Indiana taxes and tax filings for non profit organization are summarized below.
Form NP-20R, Nonprofit Organization’s Report will be required to be filed every five years instead of every year. Form NP-20 will still need to file for tax year 2021 in calendar year 2022 Thereafter, the due date for the new Form NP-20R will be based on the last two digits of an organization’s federal employer identification number (FEIN). Form NP-20R will be due on:
May 15, 2024, if the organization does not have a FEIN or if the organization’s FEIN ends in 00 through 24.
May 15, 2025, if the organization’s FEIN ends in 25 through 49.
May 15, 2026, if the organization’s FEIN ends in 50 through 74.
May 15, 2027, if the organization’s FEIN ends in 75 through 99.
After filing on the date shown above based on an organizations FEIN, an organization will be required to file Form NP-20R by May 15 every fifth year thereafter. If an organization has unrelated business income in a tax year, the organization will still need to file Form IT-20NP for each tax year with unrelated business income of $1,000 or more.
Beginning January 1, 2023, exemption certificates will no longer be mailed and will be available only through the Indiana Department of Revenue’s e-services portal.
Effective July 1, 2022, nonprofits must collect state gross retail sales tax after exceeding $20,000 in sales during a calendar year.