Pass Through Entity Tax Election
Today Indiana Governor Eric Holcomb signed Senate Bill 2 into law which provides a Federal tax savings opportunity to Indiana taxpayers who own a pass-through entity filing as an S-Corporation or a Partnership. The opportunity is called the Pass Through Entity Tax election (PTET).
We were thoroughly engaged in Senate Bill 2 and are ready to ensure all clients maximize their savings opportunity. Our team is trained on how to identify when this election opportunity exists and when it is cost beneficial to make this election.
We will be directly contacting clients to discuss the mechanics of this election and to discuss how the tax savings work.
Due to the potential savings for Indiana Taxpayers, this bill was fast tracked and systems are currently being updated to allow for reporting on the 2022 Indiana tax return. We expect the Indiana Department of Revenue and tax software providers will be ready by April 1st, 2023 to receive returns with this new election. This does mean many returns will be extended and filed after the due date in order to capture this tax savings. It is preferable to report this on an originally filed tax return in lieu of an amended tax return.
If you have any questions regarding how this will impact your taxes please do not hesitate to contact us.