New Form NP-20R Due May 15

Posted on Wednesday, January 17, 2024

On July 1, 2023, the rules for sales tax affecting nonprofits in Indiana changed.  Prior to July 1, 2023, nonprofit organizations were required to file Form NP-20, Nonprofit Organization’s Annual Report, annually with the Indiana Department of Revenue.  The form was required so that an organization could continue to be exempt from paying Indiana sales tax and was due on the 15th day of the 5th month following the end of the tax year.  So the form was due on the same date that an organization’s Form 990, Return of Organization Exempt From Income Tax, was due with the IRS.

The changes on July 1, 2023, replaced Form NP-20 with NP-20R, Nonprofit Organization’s Report.  The NP-20R is required to be filed by nonprofit organizations so that they can continue to be exempt from Indiana sales tax, the same as Form NP-20. However, Form NP-20R is due on May 15 every 5 years, regardless of when your fiscal year-end is.  The due date for all organizations is May 15.

During the transition to the new form, the State has released a schedule of when nonprofits will start filing the new Form NP-20A. Organizations that do not have an EIN or have an EIN that ends in 00 through 24 must file their first Form NP-20A by May 15, 2024.  These organizations must file the form by May 15, 2024, and then will file the form every 5 years going forward.  Other organizations will file their first NP-20A based on the following schedule and then every 5 years:

• May 15, 2025, if your organization’s EIN ends in 25 through 49.
• May 15, 2026, if your organization’s EIN ends in 50 through 74.
• May 15, 2027, if your organization’s EIN ends in 75 through 99.

The new Form NP-20R must also be filed electronically through your organization’s INTIME account.  If you do not already have an INTIME account set up, you should set one up now.  In addition to Form NP-20R, you must also upload your most recent Form 990 through INTIME when filing.

Failure to file Form NP-20R will result in the cancellation of your organizations' sales tax exemption.

The Indiana Department of Revenue is sending reminders to organizations that must file by May 15, 2025, so if your organization receives one, make sure you file appropriately.

Contributed by: Carrie Minnich, MAcct, CPA | Partner | DWD CPAs & Advisors

Posted in Mission Minded Nonprofits

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