How does a company claim withholding tax credits?
• Withholding tax credits require multiple steps to claim. First, Form IT-WH must be filed at least 30 days prior to the date the tax return will be filed on which the tax credits will be claimed. Then, the return is filed on which the credit is actually claimed. Once the tax return is received, DOR will review the return within 90 days and make a determination as to the amount of withholding credit that is available. Once a determination is made, a letter will be sent to the taxpayer notifying them of the amount of withholding credit allowed and when and how the credit may be claimed against future withholding payments. NOTE: The withholding credit does not refund any taxes previously paid.
