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2016 General Update  Agenda Indiana Department of Revenue Overview 2016 General Update  Agenda Indiana Department of Revenue Overview

2016 General Update Agenda Indiana Department of Revenue Overview - PowerPoint Presentation

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2016 General Update Agenda Indiana Department of Revenue Overview - PPT Presentation

2016 General Update Agenda Indiana Department of Revenue Overview Legislation by Tax Type Electronic Mandates Electronic Services Tips Contact Us Questions Tuesday November 01 2016 Page ID: 761396

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2016 General Update

Agenda Indiana Department of Revenue Overview Legislation by Tax Type Electronic Mandates Electronic Services Tips Contact UsQuestions Tuesday, November 01, 2016 Page

Indiana Department of Revenue Overview Tuesday, November 01, 2016 Page 3

Indiana Department of Revenue Overview Indiana 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 Tuesday, November 01, 2016 Page 4

Tuesday, November 01, 2016 Page 5 Department Projects Integrated Tax System (ITS) Study Department in the midst of a four phase ITS study ITS study helps the department develop a long-term vision and improve current processes

Tuesday, November 01, 2016 Page 6 Department Projects INBiz INBiz allows business to register with the department and add a tax type or a new location to an existing business Visit INBiz.in.gov

Tuesday, November 01, 2016 Page 7 Department Projects Identity Protection Program During the 2014 individual tax filing season, the department implemented an Identity Protection Program to reduce taxpayer identity theft and disbursement of fraudulent tax refunds. The program uses third party vendor LexisNexis to allow the department to check identities against national databases. In FY 2016, the department continued to increase the security features of its Identity Protection Program, which protects Hoosier taxpayers from identity theft and refund fraud via tax returns and the state from issuing fraudulent refunds to criminals.

Tuesday, November 01, 2016 Page 8 Department Projects Identity Protection Program As of Nov. 1, the department identified and stopped more than $5 million in attempted identity theft and tax refund fraud. The success of the Identity Protection Program is not only in stopping fraud but in deterring future fraud. If your client receives an identity confirmation quiz letter , he or she should go online or call the number on the letter to take the quiz to confirm his or her identity.

Legislation by Tax Type Tuesday, November 01, 2016 Page 9

Tuesday, November 01, 2016 Page 10 Tax Administration Effective July 1, 2016, a taxpayer has 20 days from the date the department mails a demand notice to either pay, correct an issue or establish a payment plan

Individual Income Tax Tuesday, November 01, 2016 Page 11

Individual Income Tax The following changes affect Indiana’s individual adjusted gross income tax. Effective July 1, 2016, taxpayers may donate all or part of their tax refund to the military family relief fund.Effective Jan. 1, 2017, the $1,500 exemption for dependent children is expanded to include certain individuals for whom the taxpayer is the legal guardian, but not the parent. (for tax year 2018 filed in 2019) Effective Jan. 1, 2017, the credit for contributions to the 21st Century Scholars Program is eliminated. Tuesday, November 01, 2016 Page 12

Tuesday, November 01, 2016 Page 13 Individual Income Tax The following changes affect Indiana’s individual adjusted gross income tax. Form IT-40EZ is no longer available for Indiana filing purposes. Full-year residents must file using Form IT-40 In 2017, the individual income tax rate is reduced from 3.3% to 3.23%

2017 Due Date Table for Individual Income Tax Filers Tuesday, November 01, 2016 Page 14 Date Form Type/Filing/Payment Activity 01/17/17 Farmer/fisherman (2/3 rd rule): only one est. payment due 01/31/17 File IND return, pay tax due, no 4 th installment payment due 03/01/17 Farmer/fisherman (2/3 rd rule): file return/pay by March 1, no est. tax due 04/18/17 IT-40; IT-40EZ; IT-40PNR; IT-40RNR; IT-40ES; ES-40 (1 st est. installment period); IT-9 06/15/17 IT-40ES; ES-40 (2 nd est. installment period) 06/30/17 SC-40; IT-40/IT-40PNR filing due date if claiming unified tax credit for the elderly (not including extensions) 09/15/17 IT-40ES; ES-40 (3 rd est. installment period) 11/14/17 State filing due date if filing under extension (federal Form 4868 and/or IT-9) 01/17/18 IT-40ES; ES-40 (4 th est. installment period) 01/31/18 File IND rtn , pay tax due, no 4 th installment payment due 03/01/18 Farmer/fisherman (2/3 rd rule): file return/pay by March 1, no est. tax due

Corporate Income Tax Tuesday, November 01, 2016 Page 15

Corporate Income Tax (2015 Legislation) The following changes affect Indiana’s corporate adjusted gross income tax. Effective Jan. 1, 2016, the “throwback rule” for apportionment is eliminated for apportioning income to Indiana if the taxpayer is not taxable in the state of the purchaser Effective Jan. 1, 2016, the intercompany expense “add-back” statute was modified to expand the requirement to include “all tangible expenses” and “all directly related interest expense” Effective Jan. 1, 2016, the definition of “business income” is revised to mean “all income that is apportionable to the state under the Constitution of the United States” Tuesday, November 01, 2016 Page 16

Corporate Income Tax The following changes affect Indiana’s corporate adjusted gross income tax. Effective Jan. 1, 2016 (retroactive), references to the Internal Revenue Code are updated to that in effect on Jan. 1, 2016, instead of Jan. 1, 2015. Effective July 1, 2016, the property tax credit to which a hospital is entitled for the taxable year may be carried forward to a succeeding tax year indefinitely. Any unused credit for a taxable year still may not be carried back to a preceding tax year. Effective Jan. 1, 2017, a taxpayer must enter into an agreement with and apply to the Indiana Economic Development Corporation in order to claim the industrial recovery tax credit. Tuesday, November 01, 2016 Page 17

Corporate Income Tax The following changes affect Indiana’s corporate adjusted gross income tax. Effective July 1, 2016, if a partnership fails to withhold and pay any amount of tax required to be withheld and thereafter the tax is paid by the partners, the amounts of tax as paid by the partners shall not be collected from the partnership but it may not be relieved from liability for interest or penalty otherwise due in respect to the failure to withhold.

Tuesday, November 01, 2016 Page 19 Sales and Use Tax

Tuesday, November 01, 2016 Page 20 Sales and Use Tax The following changes affect Indiana’s sales and use tax. Effective Jan. 1, 2010 (retroactive), contractors are required to collect sales tax when the contractor: 1) transfers construction material pursuant to a time and material contract; or 2) converts construction material into real property pursuant to a time and material contract. Effective Jan. 1, 2010 (retroactive), with limited exceptions, contractors are required to pay use tax on the contractor’s conversion of construction material into real property if that construction material was purchased by the contractor.

Tuesday, November 01, 2016 Page 21 Sales and Use Tax The following changes affect Indiana’s sales and use tax. Effective July 1, 2016, the sale, lease, or rental of storage for bullion or currency are exempt in certain circumstances from the state gross retail tax. Effective Jan. 1, 2017, the “cutting of steel bars into billets” is no longer eligible for the sales tax exemption for manufacturing machinery, tools, and equipment acquired for direct use in direct production.

Other Taxes Tuesday, November 01, 2016 Page 22

Other Taxes Special Taxes Effective July 1, 2016, the distributor discount for taxpayers who purchase cigarette tax stamps between June 30, 2016 and June 30, 2017 increases from $0.012 to $0.013 per individual package of cigarettes. Effective July 1, 2016, the distributor collection allowance for taxpayers who are distributors of other tobacco products between June 30, 2016 and June 30, 2017 increases from 0.006 to 0.007 of the amount due. Tuesday, November 01, 2016 Page 23

Electronic Mandates Tuesday, November 01, 2016 Page 24

Electronic Mandates Alcohol, Other Tobacco Products, and Cigarette Taxes 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. Beginning November 14, 2016, taxpayers can file and pay their alcohol excise taxes and other tobacco product (OTP) taxes using INtax. Tuesday, November 01, 2016 Page 25

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). Tuesday, November 01, 2016 Page 26

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. Tuesday, November 01, 2016 Page 27

Electronic Services Tuesday, November 01, 2016 Page 28

Electronic Services INtax INtax, the department’s online business tax reporting and payment application, 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. Guides are available for taxpayers and tax professionals. Visit www.in.gov/dor/4336.htm for these resources. Tuesday, November 01, 2016 Page 29

Electronic Services 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 . Tuesday, November 01, 2016 Page 30

Electronic Services ePay Online Application ePay is the department’s electronic tax payment service where practitioners can: Check balancesMake payments online for a balance dueMake 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 Visit: http://www.in.gov/dor/4340.htm . Tuesday, November 01, 2016 Page 31

Tips Tuesday, November 01, 2016 Page 32

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. Tuesday, November 01, 2016 Page 33

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. Tuesday, November 01, 2016 Page 34

Tips Business Education Outreach Program Free tax presentations are available throughout the state for clients and practitioners.View a list of upcoming presentations at http://bit.ly/bizoutreach. Tuesday, November 01, 2016 Page 35

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. Tuesday, November 01, 2016 Page 36

Tips Mailing Instructions Income tax returns Payments: P.O. Box 7224 Indianapolis, IN 46207-7224Others: P.O. Box 40 Indianapolis, IN 46206-0040 Tuesday, November 01, 2016 Page 37 Form WH-3 Refunds: P.O. Box 7220 Indianapolis, IN 46207-7220 Others: P.O. Box 6108 Indianapolis, IN 46206-6108

Tips Power of Attorney (Form POA-1) Fax: 317-615-2605Mail: Indiana Department of Revenue P.O. Box 7230 Indianapolis, IN 46207-7230 Tuesday, November 01, 2016 Page 38

Tips Automatic Updates Receive automatic email updates from the Indiana Department of Revenue.To register:Visit the department’s home page: www.in.gov/dor. Click the “Subscribe for e-mail updates” link. Follow the registration steps. Tuesday, November 01, 2016 Page 39

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 withholdingOnly use forms that were provided by the department or certified tax preparation softwareTrust taxes must be submitted electronically unless an exemption has been issued Tuesday, November 01, 2016 Page 40

Contact Us Tuesday, November 01, 2016 Page 41

Contact Us Tuesday, November 01, 2016 Page 42 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 Office 414 Landmark Ave. Bloomington, IN 47403 (812) 339-1119 (812) 330-1804 fax Clarksville District Office 1200 Madison St., Suite E. Clarksville, IN 47131 (812) 282-7729 (812) 282-0574 fax Columbus District Office 3520 Two Mile House Rd. Columbus, IN 47201 (812) 376-3049 (812 ) 372-7368 fax Evansville District Office 500 S. Green River Rd. Ste. 202, Goodwill Building Evansville, IN 47715 (812) 479-9261 (812) 471-8189 fax Fort Wayne District Office 1415 Magnavox Way, Ste. 100 Ft. Wayne, IN 46804 (260) 436-5663 (260) 434-1380 fax Indianapolis Taxpayer Services 100 N. Senate, IGCN Rm N105 Indianapolis, IN 46204 (317 ) 232-2240 (317) 232-1021 fax Kokomo District Office 117 E. Superior St. Kokomo, IN 46901 (765) 457-0525 (765) 452-0559 fax Lafayette District Office 100 Executive Dr., Ste. B Lafayette, IN 47905 (765) 448-6626 (765) 448-2760 fax Merrillville District Office 1411 E. 85th Ave. Merrillville, IN 46410 (219) 769-4267 (219) 769-9363 fax Muncie District Office 3640 N. Briarwood Lane , Ste. 5 Muncie, IN 47304 (765) 289-6196 (765) 286-7346 fax South Bend District Office 105 E. Jefferson Blvd., Ste . 350 South Bend, IN 46601 (574) 291-8270 (574) 291-8658 fax Terre Haute District Office 30 N. 8th St., 3rd Floor Terre Haute, IN 47807 (812) 235-6046 (812) 235-2352 fax District Office business hours are 8:00 a.m. to 4:30 p.m. Monday – Friday Tuesday, November 01, 2016 Page 43

Contact Us Like us on Facebook Search “Indiana Department of Revenue”Follow us on Twitter@INDeptofRevenueFeedback:Form suggestionsWebsite suggestionsExperience with the department feedback@dor.in.gov Tuesday, November 01, 2016 Page 44

Questions? Tuesday, November 01, 2016 Page 45

Thank you! Tuesday, November 01, 2016 Page 46