2013 Changes for Indiana Business Taxpayers

Published: September 27, 2012

by Abbey R. Lakin, Senior, Tax Services Group | Jim Wagoner, CPA, Partner, Director of Tax Services Group

This year the Indiana state legislature passed new laws that affect Indiana business taxpayers. These new laws include mandatory electronic filing for all Indiana sales and withholding taxes, as well as changes to the 2013 sales and withholding tax deadlines and amounts. Please see below for a summary of these key legislative changes.

Mandatory Electronic Filing Effective January 1, 2013:

Beginning January 1, 2013, all Indiana businesses must file and remit sales and withholding taxes via the Department’s INtax application, or electronic funds transfer (EFT). Taxpayers may still receive mailing coupons through mid-2013, but after that the Department will no longer mail coupons and they will not be available upon request.

Electronic Mandate Key Changes:

– Effective July 1, 2012, anyone who is required to file more than 25 W-2, 1099-R, or WH-18 statements must file them electronically

– Effective Jan. 1, 2013, all retail merchants must report and remit sales tax electronically

– Effective Jan. 1, 2013, all withholding agents must report and remit withholding taxes electronically

– Effective Jan. 1, 2013, quarterly withholding filings will be eliminated

More about INTax:

INtax is a free online tool where businesses can manage several of their tax obligations including Indiana retail sales and withholding taxes. Among other tasks, INtax also allows your authorized tax practitioner to file, pay and manage several of your business tax types. Taxpayers should register for INtax or begin using a third-party agent before January 1, 2013. Businesses who fail to register will risk non-compliance and legal actions. The Department recommends that businesses register and begin filing electronically as soon as possible to avoid the January rush. The web address to register and file – https://www.intax.in.gov/Web/Default.aspx

Sales/Use & Withholding Tax Deadlines Effective January 1, 2013:

Sales/use tax and withholding returns for an early filer must be filed and tax remitted by the 20^th day of the month. An early filer will be one that had a monthly average tax due of $1,000 or more in the preceding year. If a filer had less than a $1,000 monthly average, then that filer will be considered a monthly filer and returns will be due by the 30^th. The determination for early versus monthly filer for sales/use and withholding taxes will be made separately. In other words it may be possible for a filer to be an early filer for withholding taxes and a monthly filer for sales/use tax.

If you have any questions regarding these new filing changes or getting your company registered on INtax, please contact Greenwalt CPAs Tax Services Group at 317-241-2999.