State & Local Tax Impacts of COVID-19 for Indiana – 2020

Thoughtware Alert Published: Dec 11, 2020 | Updated: May 05, 2021

Information current as of December 31, 2020.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Indiana

  • The DOR is extending filing and payment deadlines to align with the IRS. Corporate and individual tax returns and payments, along with estimated payments originally due by April 15, are now due on or before July 15. Corporate income tax returns and payments originally due on May 15 are now due August 17. All other tax return filings and payment due dates remain unchanged.
    • Governor Eric Holcomb announcement, March 19, 2020.
  • Indiana has suspended the deadline for property tax exemption applications due to COVID-19 until June 30 from April 1.
    • Governor’s Executive Order 20-12, March 26, 2020.
  • The Department of Insurance (DOI) will modify its own internal policies by implementing a 60-day grace period relating to renewals and cancellations for all licensees, certificate holders and registrants. This includes premium tax and surplus lines premium tax filings and the DOI will waive any penalty related to late payment during this period.
    • Indiana DOI Bulletin 252, March 26, 2020.
  • Indiana has officially announced its tax relief package, including: 1) requiring the DOR to provide a time extension related to all income tax liabilities; 2) reminding taxpayers that property taxes remain due on May 1, but counties are to waive penalties on payments made after the due date; 3) providing a use tax exemption on donations of medical supplies or other goods by manufacturers in furtherance of the COVID-19 pandemic, subject to the approval of the DOR; 4) clarifying that the DOR may waive any penalties and interest that are directly related to taxes; and 5) requiring the Bureau of Motor Vehicles' commissioner to extend the deadline for vehicle registration renewals by suspending administrative penalty fees.
    • Governor's Executive Order 20-05, March 19, 2020.
  • Indiana will exempt manufacturers making donations of medicine, medical supplies, or other eligible items to fight the COVID-19 pandemic in Indiana from use tax.
    • Indiana DOR Notice, April 6, 2020.
  • Indiana issued clarifications related to the COVID-19 tax changes. The first estimated payment, normally due in April, will now be due after the second estimated payment, which still remains due in June. The DOR will not use an employee's relocation that is the direct result of temporary remote work requirements arising from and during the COVID-19 pandemic health crisis as the basis for establishing Indiana nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporary relocated employee.
    • Indiana DOR Notice, April 6, 2020.
  • Indiana-based IFTA licensees who file quarterly motor carrier fuel tax returns may delay the first quarter’s return, ordinarily due April 30, 2020, to May 31, 2020.
    • Indiana DOR Notice, March 31, 2020.
  • Indiana will not use an employee’s relocation, that is the direct result of temporary remote work requirements arising from and during the COVID-19 pandemic health crisis, as the basis for establishing Indiana income tax nexus or for exceeding the protections provided by P.L. 86-272 for the employer of the temporary relocated employee.
    • Indiana DOR COVID-19 FAQs, April 10, 2020.
  • Indiana has waived certain property tax assessments and fees. Beginning May 12, and for 60 days, counties must waive penalties on special assessments and fees that are included on property tax bills and collected as part of the property tax payment. This includes applying the waiver to conservancy district assessments for exceptional benefits, ditch and drain assessments, solid waste management fees, and stormwater assessment fees, as well as, any fee or special assessment imposed by the local government and paid along with the May 11 installment of property taxes.
    • Governor’s Executive Order 20-21, April 15, 2020.
  • Indiana has extended the May 15 deadline for submitting business personal property returns, compliance statements, and property tax incentive applications to June 15. Applicants for a new, transfer, or renewal alcoholic beverage permit may submit the property tax clearance Form 1 without the embossed seal for the duration of the emergency.
    • Governor’s Executive Order 20-23, April 23, 2020.
  • Indiana provided additional extensions for the filing and payment of certain individual and corporate tax returns to provide further relief during the COVID-19 health crisis. These extensions are in addition to those previously announced on March 19, 2020. July 15, 2020, is the new extended due date for individual estimated payments originally due on June 15, 2020, the deadline for filing a claim for refund of income tax set to expire between April 1 and July 14, 2020, and corporate estimated payments due on April 20, May 20 or June 22, 2020. Corporate tax returns (IT-20, IT-41, IT-65, IT-20S, FIT-20, IT-6WTH and URT-1) originally due on May 15, June 15 or July 15, 2020, are now due on August 17, 2020.
    • Governor’s Executive Order 20-27, May 8, 2020.
    • Indiana DOR Notice, May 11, 2020.
  • Indiana issued information on the resumption of programs and initiatives that had been temporarily modified due to the coronavirus pandemic. Between July and October, the DOR will resume sending bills and notices for outstanding tax liabilities and unfiled returns, as well as the timing for legal protests, request protest hearings, and offers in compromise. The DOR also will resume the processing of Registered Retail Merchant Certificates and involuntary collections actions (including levies) for selected cases.
    • Indiana DOR “Back on Track,” July 30, 2020.

For more information, reach out to your BKD Trusted Advisor or use the Contact Us form below.

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