Bapple and Bapple, Inc. is a Certified Public Accounting Firm located in Crown Point, Indiana. Our firm has been helping clients with their accounting needs and concerns since 1985.
Our office of trained professionals work hard to meet and exceed our clients' expectations.
To Our Business Clients,
On February 22, 2023 A new tax law was signed by the governor with changes to pass-through entity taxes. This law was made retroactive to the 2022 tax year and, therefore, affects the returns currently being filed.
https://iga.in.gov/legislative/2023/bills/senate/2
This Law allows a pass-through entity ( S-Corporations, Partnerships, Estates, and Trusts) to elect to pay the income tax calculated on the total Indiana income on behalf of the shareholder, member, or partner. These payments will be reported on the 2022 K-1s and provide a credit to the individual for their Indiana state tax liability.
If the entity has income in 2022 this method would provide more benefit to the owners.
This is an election that each company can make annually and is not required.
This requires those entities that wish to make the election and make payments directly to Indiana for the owners, file an extension for 2022 in order to take advantage of the new tax law.
As always, we are happy to discuss this change and help clients resolve any new items that arise. Please reach out to our office if there is anything we can do to help with this or other tax questions and concerns.