Sales Tax Updates in Indiana

Tax Professionals' Resource
December 18, 2012 — 1,177 views  
Become a Bronze Member for monthly eNewsletter, articles, and white papers.

Following are recent Indiana sales and use tax updates:

Pay System

The Indiana Department of Revenue's electronic tax payment system is called ePay. ePay can be accessed 24 hours per day, and both individuals and businesses can use it to pay taxes owed. The system is set up to accept Visa, MasterCard, Discover or even e-checks. Both payment status checks and summaries of taxes due can be viewed at ePay. ePay accepts bill payments, estimated payments, extension payments and individual income tax payments.

New Business INtax Requirement

Since January 1, 2010, any new businesses that register with the Indiana Department of Revenue are required to use the INtax system to file sales and use tax returns. With INtax, a business can:

- Correspond online with the Department of Revenue.
- Register an additional or new business.
- Schedule future tax payments
- View tax balances at any time

Collection Agency News

The department has contracted with three licensed collection agencies. Premiere Credit of North America, NCO Financial Services and United Collections Bureau are now able to legally apply levies and wage garnishments.

Student Loan interest Add-Back

There is now specific information available on how to figure the student loan interest add-back. No add-back was required for 2010, but there are qualifiers that must be used to figure phase-out ranges for tax years 2011 and beyond.

Tax Rate Changes

County income taxes for Carroll, Hendricks, Martin, Tipton and Jasper counties have changed recently. A PDF is available to check these rates online.

More Than 25 Employees?

Any employer with more than 25 employees must file their WH-3 and WH-2 forms electronically. The WH-3 form is a reconciliation form for county and state withholding taxes.

Online Inquiry Center

There is now an online inquiry center where tax professionals can sign up for tax practitioner news and updates. Specific questions can be sent directly to the Tax Professional area where they will be answered in a timely manner.

Form IT-40EZ Issue

Form IT-40EZ unfortunately no longer supports the earned income credit or EIC. Now, anyone who files form IT-40EZ must file the Indiana form IT-40 in order to claim the Indiana earned income credit. Those who are seeking quick refunds should consider the use of INfreefile or other available electronic filing methods.

Delinquent Businesses

Indiana law requires online posting of all businesses whose registered retail merchant certificates have been allowed to expire due to failure to pay sales tax. This list is available to anyone.

 

Tax Professionals' Resource