Indiana Sales Tax Update for Nonprofits

Posted on Wednesday, November 09, 2022

In 2022, the State of Indiana made some changes to sales taxes for nonprofit which we shared in our blog, Indiana Sales Tax Changes for Nonprofits. Recently they have provided some additional information on the changes and many nonprofit organizations have received letters from the State noting these changes.

In the past, nonprofit organizations were required to file Form NP-20, Nonprofit Organization's Annual Report, each year with the Indiana Department of Revenue to maintain their sales tax exemption. This form could be filed on paper or electronically through the organization's INTIME account. Organizations still need to file Form NP-20 for the 2021 tax year due in 2022. However, after filing the Form NP-20 due in 2022, Form NP-20 will no longer be filed. Form NP-20R, Nonprofit Organization's Report, will be required instead. The first due date for an organization's NP-20R is based on the last two digits of its EIN.

If your organization does not have an EIN or your EIN ends in 00 through 24, your first Form NP-20R is due May 15, 2024.
If your organization's EIN ends in 25 through 49, your first NP-20R is due May 15, 2025.
If your organization's EIN ends in 50 through 74, your first NP-20R is due May 15, 2026.
If your organization's EIN ends in 75 through 99, your first NP-20R is due May 15, 2027.

After the date shown above, your next NP-20R is due by May 15th every fifth year. Also, form NP-20R must be filed electronically through your organization's INTIME account. If your organization does not currently have an INTIME account, now would be a good time to set one up.

If you organization fails to file the required form by the due date, your sales tax exemption will expire and you will be required to pay sales tax.

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

Posted in Mission Minded Nonprofits

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