Section 45IAC3.1-1-65. Exempt organizations and income; report

   Exempt Organizations. Organizations exempt from Federal income tax under IRC §501 (a) are exempt from adjusted gross income tax. However, this exemption extends only to income of such organizations which is not taxable for Federal tax purposes. Thus organizations subject to tax under IRC §511 on their unrelated business income are also subject to adjusted gross income tax on such income.

  Exempt organizations are required to file an annual report by the fifteenth day of the fifth month following the close of the tax year. Those organizations having unrelated business income must report such income by filing an annual income tax return no later than the time the annual report is due. The organization must make quarterly payments of adjusted gross income tax and file quarterly income tax returns if its adjusted gross income tax liability exceeds its gross income tax liability by $1000. See Regulation 6-3-4-4 (020) [45 IAC 3.1-1-92].

  For the supplemental net income tax liability of exempt organizations having unrelated business income, see Regulation 6-3-2-3.1 (010) [45 IAC 3.1-1-68]. (Department of State Revenue; Reg 6-3-2-3(a)(010); filed Oct 15, 1979, 11:15 am: 2 IR 1533; errata, 2 IR 1743)