Have You Received Penalty Notices from the Indiana Department of Workforce Development?

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by Larry Brodnik, CPA and Angela Crawford, CPA | Team Members of the Tax Services Group

The Indiana Department of Workforce Development (DWD) acknowledges there are systems issues with state unemployment tax (SUTA) remittances. From the DWD office, the notices are being generated for employers that filed on-line and mailed in a payment where the postmark was timely, but the processing by DWD occurred after the first of the month. The DWD is aware of the error and is upgrading the system to process returns and payments correctly.

DWD also notes a high number of employers that filed on-line and then submitted an original UC1 report with payment. Submitting an original UC1 with the payment after filing on-line will cause the payment to process through the bank but will suspend the payment from posting to the account. It is very important that employers that have filed on-line, do not also send in a second original report. DWD is working to correct these duplicate reports as quickly as possible.

Any employer who is incorrectly assessed penalty or interest as a result of processing delays will have the assessment removed from their account. Employers who have received notice of assessment should contact 800-437-9136 and select option 1 (collections) if the assessment has not been removed by 05/30/11. Employers can monitor their accounts at https://uplink.in.gov/ESS/ESSLogon.htm.

In similar news, the Indiana Department of Revenue is experiencing some technical difficulties in processing payments made with individuals’ 2010 tax filings of form IT-40. From in.gov/dor, taxpayers who sent in paper checks for payment should anticipate that those checks could take until June 1, 2011 to process. The Department of Revenue received approximately 500,000 paper returns and checks after the April 18 deadline. These returns and checks must be processed manually, which takes considerably more time than returns and payments submitted electronically.