1. (a) The following definitions apply to this section:

   1. (1) "Direct owner" means a person, corporation, or other entity that owns an interest in a pass through entity without owning the interest through another entity.

   2. (2) "Owner" means:

      1. (A) a partner in a partnership, including a member of a limited liability company;
      2. (B) a shareholder in a corporation described in IC 6-3-2-2.8 (2); or
      3. (C) a beneficiary of an estate or trust.
   3. (3) "Pass through entity" has the meaning set forth in IC 6-3-1-35 .
2. (b) The department may disclose return information or liabilities related to a return by a pass through entity filed under IC 6-3 or IC 6-5.5 to a direct owner of the pass through entity, but only to the extent necessary for the direct owner to determine the direct owner's tax due or filing requirements under IC 6-3 or IC 6-5.5 . For purposes of this subsection, a withholding tax return other than a return filed under IC 6-3-4-12 , IC 6-3-4-13 , or IC 6-3-4-15 is not a return of a pass through entity permitted to be disclosed.
3. (c) The department may disclose the information from another taxpayer's return to a taxpayer, but only to the extent necessary to determine the requesting taxpayer's income, deductions, credits, or other attributes affecting the requesting taxpayer's liability for a listed tax.

4. (d) If the department determines that a taxpayer is personally liable for a listed tax of another taxpayer or is liable for a listed tax as a transferee of another taxpayer, the department may disclose:

   1. (1) any information related to the other taxpayer, but only to the extent the taxpayer is personally liable for the liabilities of the other taxpayer; and
   2. (2) any information related to amounts collected or relieved from collection with regard to the liability that the department determines is owed by the taxpayer.

As added by P.L.205-2025, SEC.23.