2015 General Update. Program Department of Revenue Overview Legislation by Tax Type Electronic...

2015 General Update

Program

• Department of Revenue Overview• Legislation by Tax Type • Electronic Mandates • Electronic Services • Tips • Contact Us• Questions

Wednesday, May 3, 2023

Overview

Department of Revenue Mission • To collect the legally required taxes in a fair, consistent, and

efficient manner and to provide accurate, timely, and reliable funding and information to state and local constituents


Taxes Administered by the Department

• Aircraft License Excise• Alcoholic Beverage• Auto Rental Excise• Cigarette• Commercial Motor Vehicle Excise• Controlled Substance Excise• Corporate Income• County Adjusted Gross Income• County Economic Development Income• County Innkeeper’s• County Option Income• Environmental

• Estate • Fiduciary • Financial Institutions• Fireworks • Fuel • Gasoline • General Skipping Transfer• Individual Income • Malt Beverage


Overview

Taxes Administered by the Department

• Marine Fuel • Marion County Admissions • Motor Carrier Fuel • Motor Carrier Surcharge• Motor Vehicle Excise • Pari-mutuel Admissions• Pari-mutuel Wagering• Petroleum Severance• Prepaid Sales• Public• Public Utility (Railroad Car

Companies/Railroads)

• Riverboat Admissions• Riverboat Wagering• Sales & Use• Tire Fee • Tobacco• Utility Receipts • Withholding


Overview

Individual Income Tax


Individual Income Tax Legislation Impacting 2015

• Adoption Credit• Credit is the lesser of 10% of the federal adoption credit or $1,000 per

qualifying child• Civil Service Annuity Deduction Increase

• Deduction increases from $2,000 to $8,000 for 2015 tax year• Deduction will further increase to $16,000 for 2016 and beyond• Deduction expands to include a surviving spouse

• Credit for Local Taxes Paid Outside Indiana• Credit may be used to offset the County Economic Development

Income Tax

Changes Effective Jan. 1, 2015



• Lake County Residential Income Tax Credit Calculation Change• The income limitation qualifier has changed from having earned

income of less than $18,600 to having adjusted gross income of less than $18,600

• Public K-12 Education Fund Donation• Adds a tax refund check-off for funding public education for

kindergarten through grade 12• Public School Educator Expense Credit

• An educator employed by an Indiana school corporation is entitled to a nonrefundable tax credit equal to the lesser of $100 or the total amount expended for certain classroom supplies during a tax year




• Repealed Credits: • Blended Biodiesel Credit. Carryforward of existing credit available.• Ethanol Production Credit. Carryforward of existing credit

available.• New Employer Credit. Carryforward of existing credit available.• Riverboat Building Credit. Carryforward of existing credit

available.• Prison Investment Credit. No carryforward provision.• Voluntary Remediation Credit. No carryforward provision.




• Statute of Limitations Change• The statute of limitations for a refund claim of overpayment of

withholding taxes has been extended from two to three years (HEA 1472, Sec. 17)

• Tax Rate Reduction Reminder• Individual income tax rate has been reduced from .034 to .033

for 2015 and 2016



Individual Income TaxNew Legislation

• Repealed Add-Backs• Discharge of debt of a principle residence• Lump sum distribution from federal Form 4972• Qualified disaster assistance property• Qualified refinery property• Qualified film or television production• Qualified preferred stock• Certain trade or business deductions based on employment of unauthorized alien

• Repealed Credits• County credit for the elderly• Historic Building Rehabilitation Credit (carryforward of existing credit available)



Individual Income Tax New Legislation

• Repealed Deductions• Insulation Deduction repealed• Law Enforcement Reward Deduction repealed• Lottery Winnings Deduction partially repealed

• Repeals for the first $1,200 of winnings of each Indiana lottery winning event• Medical Care Savings Account Deduction

• Repeals the Indiana deduction for funds put in a medical care savings account by an employer for an employee that are not exempt for federal tax

• Non-Indiana Locality Earnings Deduction• Solar-powered Roof Vents or Fans Deduction



Individual Income Tax New Legislation

• Miscellaneous• School Scholarship Credit

• Annual contribution ceiling increased from $8,500,000 to $9,500,000

Changes effective Jan. 1, 2016


Corporate Income Tax


Corporate Income Tax Legislation Impacting 2015

• Recycling Exemption• The recycling exemption is amended to exclude any collection of

recycling materials from the definition of “recycling,” not limited to collection by licensed motor vehicles. “Occupationally engaged in recycling” is defined to engage in recycling with the intention of doing so at a profit. “Recycling cart” is defined to be a manually propelled container with a capacity of not more than 100 gallons. The double direct test for property acquired to be used in recycling is eliminated.

Changes Effective July, 1 2015


Corporate Income Tax Legislation Impacting 2015

• Composite Return Filing Requirement Changes• A pass-through entity is not required to withhold tax or file a composite

return for a nonresident member if the entity is a publicly traded partnership; meets the IRC Section 7704(c) exception; and agrees to file an annual information return reporting the name, address, and TID number for each member.

• A trust or an estate is required to file a composite return on behalf of all nonresident beneficiaries.

• Extension of Time to File• If an S corporation is given an extension of time to file its annual return, it is

automatically given an extension to file its withholding return for nonresident shareholders.



Corporate Income TaxNew Legislation

• Several add-backs and modifications are eliminated • Adjustment to depreciation for qualified disaster assistance property• Adjustment to depreciation for qualified refinery property• Adjustment to amortization for qualified film or production expenses• Adjustment for losses from the sale or exchange of preferred stock in the Federal

National Mortgage Association or Federal Home Loan Mortgage Corporation claimed as ordinary losses

• Adjustment for capital gain portion of a lump sum distribution • Adjustment for election under Section 179C of the IRC and wages,

reimbursements, or other payments made for services if the person was prohibited from being hired as an employee because the person was an unauthorized alien



Corporate Income Tax New Legislation

• New Credit• A for-profit hospital subject to the AGI tax and that meets certain

requirements is eligible for a credit for 10% of the property taxes paid in Indiana for the taxable year the property was used as a hospital.

• Sales Tax Exemption• The sales tax exemption for agricultural machinery, tools, and

equipment is expanded to include material-handling equipment purchased for transporting materials into such activities from an onsite location.



Sales and Use Tax


Sales and Use Tax Legislation Impacting 2015

• Recycling Exemption• The recycling exemption is amended to exclude any collection

of recycling materials from the definition of “recycling,” not limited to collection by licensed motor vehicles. “Occupationally engaged in recycling” is defined to engage in recycling with the intention of doing so at a profit. “Recycling cart” is defined to be a manually propelled container with a capacity of not more than 100 gallons. The double direct test for property acquired to be used in recycling is eliminated.

Changes Effective July 1, 2015


Sales and Use Tax New Legislation

• Sales Tax Exemption • The sales tax exemption for agricultural machinery, tools, and

equipment is expanded to include material-handling equipment purchased for transporting materials into such activities from an onsite location.

• Apportionment Update• The “throwback rule” is eliminated for apportioning income to

Indiana if the taxpayer is not taxable in the state of the purchaser.



Other Taxes


Other Taxes Legislation Impacting 2015

• Aircraft• An aircraft that has a total time in service exceeding 50 hours is

no longer considered in inventory and is subject to registration and all applicable taxes

Changes Effective July 1, 2015


Other Taxes New Legislation

• Aircraft• The annual registration date for aircraft is the last day of

December instead of the last day of February

Changes effective Jan. 1, 2016


MiscellaneousSame-Sex Marriage Tax Filing Guidance

• Couples in same-sex marriages should file with Indiana using the same filing status they used when filing their federal income tax return


MiscellaneousForm WH-18 no longer available

• The Indiana Miscellaneous Withholding Tax Statement for Nonresidents, WH-18, is obsolete as of tax year 2015. Corporations should use the newly revised Schedule IN K-1 to replace the WH-18 for nonresident shareholders and partners claiming withholding paid into the corporate account with the IT-6WTH or corporate return.

• Schedule IN K-1 is not yet available for electronic filing purposes.

Taxpayers filing Form IT-40PNR and claiming a pass-through entity withholding credit (from a Schedule IN K-1) will need to file paper tax returns and enclose the IN K-1s.


Electronic Mandates


Electronic Mandates Alcohol, Other Tobacco Products, and Cigarette Taxes

• As of July 1, 2014, all businesses in Indiana must file and pay their alcohol excise taxes, cigarette taxes, and other tobacco product (OTP) taxes electronically. Any informational returns that do not require a tax payment also must be filed electronically.


Electronic Mandates Sales and Withholding Taxes

• All Indiana businesses are required by law to report and remit sales tax and withholding tax electronically.

• The department has discontinued mailing coupons for sales and withholding. Moreover, the coupons are not available upon request. Taxpayers should register for INtax or begin using a third-party agent. Taxpayers can request an exemption from this mandate if they meet certain requirements. They should contact the department at (317) 232-2337 and obtain an Exemption Request form (BT-EX).


Electronic Mandates Fuel Taxes

• All motor carriers are required by law to file and pay their fuel taxes electronically.

• Carriers can use the Indiana Fuel Tax System to comply. The system offers motor carriers the ability to manage all their transactions with the Motor Carrier Division online and in one place.


Electronic Services


Electronic Services

IT-20S and IT-65 Online Filing • The department has completed its modernized electronic filing

(MeF) for the IT-20S and is working to offer MeF for the IT-65 return in 2015.

Food and Beverage Tax Online • Taxpayers can file and pay food and beverage tax through INtax.County Innkeeper’s Tax Online • Taxpayers can file and pay county innkeeper's tax through INtax.


Electronic Mandates INtax

• INtax has been upgraded to make filing and paying faster and simpler.


Electronic Mandates INtax• Some of the enhanced features include

• Faster system processing thanks to updated technology• Improved instruction alerts• Consolidated screens resulting in fewer clicks


Electronic Mandates INtax

• INtax continues to provide business taxpayers and preparers with direct access to all business tax accounts, instant access to file and pay Indiana taxes, complete account history, and more.

• New guides are available for taxpayers and tax professionals. Visit http://www.in.gov/dor/4336.htm for these resources.


Electronic Mandates Online Payment Plan Tool – INtax Pay

• Individuals who have received a bill after the tax season ends may be able to set up a payment plan for an individual liability online: • Taxpayer must owe more than $100.• Taxpayer must pay 20% down.• Taxpayer must have the case number found on the bill.• Visit www.intaxpay.in.gov.


Electronic Mandates ePay Online Application

• ePay is the Department of Revenue’s electronic tax payment service where practitioners can • Check balances• Make payments online for a balance due• Make payments online for one or more liabilities or cases• Manage estimated tax installment payments or view

payment history• Schedule an eCheck payment for up to 90 days in the future


Tips


Tips Audit Procedures and Policies

• The department cannot provide work papers by jump drive. Work papers will be sent via secure email.

• The department cannot accept data on a jump drive. Data must be submitted via CD-ROM or secure email.

• Power of Attorneys will receive the audit report via secure email, not in the mail.

• The audit report structure includes a table of contents.


Tips Secure Email

• The department uses DataMotion, a secure email feature that enables employees to securely email sensitive information.

• Recipients of a secure email must create a DataMotion site account and log in to see the message.

• Secure emails will be kept on the DataMotion site for one year, after which they will be archived for seven years.


Tips Tax Presentations

• Free tax presentations are available throughout the state for clients and practitioners.

• These presentations cover a wide variety of topics, including taxes for convenience store owners and new and small business owners.

• View a list of upcoming presentations at www.in.gov/dor/5176.htm.


Tips Software Identifies Non-Filers

• The department uses a software program to identify taxpayers who should have filed an Indiana return but did not.

• These taxpayers may receive a letter informing them of their filing requirement.

• If they have not filed within 30 days after receiving the letter, they may receive a BIA bill.


Tips Other Tips

• Include all necessary schedules when submitting paper returns. • Income statements must be included with a paper return to claim

Indiana credit for state and/or local withholding. • Do not black out the 1D barcode found at the bottom of some

forms. • Only use forms that were provided by the department or certified

preparation software. • Trust tax must be submitted electronically unless an exemption

has been issued.


Tips Mailing Instructions

Income tax returns• Payments:

P.O. Box 7224Indianapolis, IN 46207-7224

• Others: P.O. Box 40 Indianapolis, IN 46206-0040


Form WH-3• Refunds:


• Others: P.O. Box 6108Indianapolis, IN 46206-6108

Tips Power of Attorney (Form POA-1)

• Fax: (317) 615-2605• Email: [email protected] • Mail: Indiana Department of Revenue



Tips Automatic Updates

• The State of Indiana offers GovDelivery’s Email and Digital Subscription Management service. This tool makes it much easier for tax professionals to get the information they need.

• To register:• Visit the department’s home page: www.in.gov/dor.• Click the “! Subscribe for e-mail updates” link.• Follow the registration steps.


2016 Due Date Table for Individual Income Tax Filers


Date Form Type/Filing/Payment Activity

01/15/16 Farmer/fisherman (2/3rd rule): only one est. payment due

02/01/16 File IND return, pay tax due, no 4th installment payment due

03/01/16 Farmer/fisherman (2/3rd rule): file return/pay by March 1, no est. tax due

04/18/16* IT-40; IT-40EZ; IT-40PNR; IT-40ES; ES-40 (1st est. installment period); IT-9

06/15/16 IT-40ES; ES-40 (2nd est. installment period)

06/30/16 SC-40; IT-40/IT-40PNR filing due date if claiming unified tax credit for the elderly (not including extensions)

09/15/16 IT-40ES; ES-40 (3rd est. installment period)

11/14/16 State filing due date if filing under extension (federal Form 4868 and/or IT-9)

01/17/17 IT-40ES; ES-40 (4th est. installment period)

*Due to Emancipation Day

Contact Us


Contact Us


Practitioner Hotline (800) 462-6320 (enter 4367)

www.in.gov/dor/3863.htm

Individual Income Tax Questions

(317) 232-2240 www.in.gov/dor/4703.htm

Business Tax Questions (317) 233-4015 www.in.gov/dor/3335.htm

Corporate Income Tax (317) 232-0129 www.in.gov/dor/3335.htm

INtax Hotline (317) 232-2337 www.in.gov/dor/4336.htm

Streamlined Sales Tax (317) 233-4015 www.in.gov/dor/3341.htm

Automated Line Information

(317) 233-4018

Collection/Liability Inquiries

(317) 232-2165 www.in.gov/dor/3959.htm

Motor Carrier Services (317) 615-7200 www.in.gov/dor/4106.htm

Tax Forms Order Line (317) 615-2581 www.in.gov/dor/3489.htm

Contact Us

Bloomington District Office414 Landmark Ave.

Bloomington, IN 47403(812) 339-1119

(812) 330-1804 fax

Clarksville District Office1200 Madison St., Suite E.

Clarksville, IN 47131(812) 282-7729

(812) 282-0574 fax

Columbus District Office3520 Two Mile House Rd.

Columbus, IN 47201(812) 376-3049

(812) 372-7368 fax

Evansville District Office500 S. Green River Rd.

Ste. 202, Goodwill BuildingEvansville, IN 47715

(812) 479-9261(812) 471-8189 fax

Fort Wayne District Office1415 Magnavox Way, Ste. 100

Ft. Wayne, IN 46804(260) 436-5663

(260) 434-1380 fax

Indianapolis Taxpayer Services100 N. Senate, IGCN Rm N105

Indianapolis, IN 46204 (317) 232-2240

(317) 232-1021 fax

Kokomo District Office117 E. Superior St.Kokomo, IN 46901

(765) 457-0525(765) 452-0559 fax

Lafayette District Office100 Executive Dr., Ste. B

Lafayette, IN 47905(765) 448-6626

(765) 448-2760 fax

Merrillville District Office1411 E. 85th Ave.

Merrillville, IN 46410(219) 769-4267

(219) 769-9363 fax

Muncie District Office3640 N. Briarwood Lane, Ste. 5

Muncie, IN 47304(765) 289-6196

(765) 286-7346 fax

South Bend District Office105 E. Jefferson Blvd., Ste. 350

South Bend, IN 46601(574) 291-8270

(574) 291-8658 fax

Terre Haute District Office30 N. 8th St., 3rd FloorTerre Haute, IN 47807

(812) 235-6046(812) 235-2352 fax

District Office business hoursare 8:00 a.m. to 4:30 p.m.

Monday – Friday Wednesday, May 3, 2023

Contact Us

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• Follow us on Twitter• @INDeptofRevenue

• Feedback:• Form suggestions• Website suggestions• Experience with the department• [email protected]


Questions?


Thank you!


2015 General Update. Program Department of Revenue Overview Legislation by Tax Type Electronic...

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