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Indiana Department of Revenue

DOR > Business Tax > Frequently Asked Questions - Businesses Frequently Asked Questions - Businesses

General Business
Sales Tax
Use Tax Liability
Withholding Tax
W-2 and WH-3 Electronic Filing
Composite Filing & Nonresident Withholding
IT-6WTH
Billing
Power of Attorney
Aircraft
Auto, Watercraft, RV and Trailer Dealers
RVs and Cargo Trailers

General Business

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How do I start a business in Indiana?

Before working with the Indiana Department of Revenue to establish the proper, corporations, S Corporations, limited liability companies, nonprofit organizations, limited partnerships and limited liability partnerships one should register with the Indiana Secretary of State. For more information, visit the Business Owner's Guide.

Some businesses must then file the Business Tax Application (Form BT-1) with the department. The BT-1 establishes the proper tax accounts that will apply to your business. For example, a business that sells a product will need to register for sales tax. A business that has employees will need to register for withholding tax.

Established businesses that need to update their accounts will need to file a new BT-1 if their business profile changes. For example, if a business previously did not have employees, but now needs to hire help, the business will need to file a BT-1 to add the withholding tax account to its business profile.

How do I close my business in Indiana?

The department requires a close of business notification (Form BC-100) to close the tax accounts for a business. If the BC-100 isn’t filed, the department may continue to send bills for estimated taxes.

How do I dissolve, liquidate or withdraw my corporation?

All businesses registered with the Secretary of State Corporate Division must first file Articles of Dissolution with the Indiana Secretary of State. You may reach their office at (317) 232-6576.
Once the Articles of Dissolution are approved by the Secretary of State and you receive a Certificate of Dissolution, the Indiana Department of Revenue requires the following:

  • Form IT-966 is a notice of dissolution that is required of all organizations
  • BC-100 allows the department to close your business trust tax accounts (i.e. sales tax, withholding tax, etc.)
  • Power of Attorney is required if someone other than a corporate officer requests a clearance concerning your dissolution
  • Final tax return for all Indiana tax type

Mail the completed forms to:
Indiana Department of Revenue - MS #110
Enforcement Division/Corporate Dissolutions
100 N. Senate Ave., Room N181
Indianapolis, IN 46204
If you have additional questions, you may call the department at (317) 232-3376.

Why do you require a Social Security number when filing a BT-1?

Social Security numbers are required by law. The department does not provide any specific taxpayer account information to any organization or person outside of the department. The Social Security number is also used to verify the identity of authorized people on the business tax account.

Can I add different tax types at a later date?

Yes. You can add different tax types as your business changes. You simply submit a new BT-1 with the appropriate tax type added.

Can I register using more than one NAICS code?

While you must enter at least one NAICS code, you many register up to four codes.

How far in advance can I register my business?

The department can process applications up to three months in advance.

What is the difference between LLC, LLP, LP, S Corporation, sole proprietorship and partnership?

  • Limited liability company (LLC*) – A business structure that blends some characteristics of a partnership and a corporation. Liabilities are limited to the owner’s agreed investment in the business. A LLC is an entity formed under state law by filing articles of organization. None of the members of an LLC are personally liable for the business’s debt.
  • Limited liability partnership (LLP*) – A hybrid form of a general partnership.
  • Limited partnership (LP*) – A form of partnership in which liabilities are limited to general partners, while limited partners’ liabilities are limited to their agreed investment in the business.
  • S Corporation – An eligible domestic corporation that can avoid double taxation (once to the corporation and again to the shareholders and/or employees). This business structure is exempt from federal income tax other than tax on certain capital gains and passive income. The income passes through to individual shareholders and is taxed at the individual level. An additional requirement is to obtain a Federal Employer Identification number. According to federal guidelines, to obtain a S Corporation status federal Form 2553 must be filed with the Internal Revenue Service
  • Sole Proprietorship – A person who conducts business for profit. The sole owner assumes complete responsibility for all liabilities and debts of the business. Sole proprietorships are not required to register with the Indiana Secretary of State.
  • Partnership – Two or more individuals that own a for-profit business. All partners are responsible for the liabilities and debts of the partnership. General partnerships are not required to register with the Indiana Secretary of State.

*Limited liability partnership, limited liability companies and limited partnerships are unincorporated entities, but are still considered formally organized entities.

Visit the Indiana Secretary of State Web site or the Business Owner's Guide for more information. 

If I registered for sales tax and hire employees later, what do I need to do?

You will need to add withholding tax type by filing a new Business Tax Application (Form BT-1).

If I change my organization type am I required to re-register with the Indiana Department of Revenue?

If an owner decides to change the organization type, he or she is required to complete a new application. If the owner is registering as a retail merchant there is a $25 registration fee.

Change of a corporate officer does not require another registration. It is in the best interest of the taxpayer, however, to re-register and receive his or her own taxpayer identification number. If the taxpayer chooses not to do so he or she can update and/change responsible officers by completing the Responsible Officer Change Form (ROC-1).

Is a Federal Identification number required if I am a partnership?

Yes. The federal guidelines for businesses require partnerships and corporations to have an FID. This number is also required when you withhold federal income tax from an employee regardless of the business organization type. To receive more information on how to obtain an FID number call (800) 829-4933.

Am I required to register with the Secretary of State?

Organizations that are required to register with the Secretary of State include:

  • Corporations
  • S Corporations
  • Limited Liability Company (LLC)
  • Nonprofit Corporation
  • Limited Partnership (LP)
  • Limited Liability Partnership (LLP)

To receive additional information on registration requirements you may visit the Secretary of State’s website or call (317) 232-6576.

What options do I have to file and pay my taxes?

NOTE -- Effective Jan. 1, 2013, ALL businesses in Indiana must file and pay their sales and withholding taxes electronically. For more information, click here.

There are several options available to taxpayers wishing to file and pay their taxes.

  • INtax – If you are filing and paying sales, withholding, out-of-state sales, prepaid sales, metered pump sales, fuel taxes, wireless prepaid fees, and type II gaming taxes, you are required by law to electronically file and pay these taxes. The easiest way is through INtax at www.intax.in.gov. With INtax, you can manage all these tax types. You can also manage filing and paying tire fees. It also gives you 24/7 access to business tax records, lets you file and pay online right up to the last deadline minute, securely communicate with the department, and much more. Once you have received your INtax Access Code, download an INtax QuickStart Guide at www.in.gov/dor/4336.htm  to get started.
  • Electronic Funds Transfer – You have the options to sign up and pay through EFT. The available choices to pay are ACH Debit and ACH Credit. For more information about filing using EFT, please call (317) 232-5500.
  • Paper Filing – Mail a paper return and pay with a check or money order if it is not a tax type that you are required to electronically file.

What determines my filing frequency and the due dates associated with each frequency?

The filing frequency is based on the average monthly liability throughout the tax year. Remember your filing status can be changed if there is an increase or decrease in the amount of tax you owe throughout the year. You will be notified of any changes to your filing status before the beginning of the next tax year. Also if your average monthly tax exceeds $5,000, you are required to make payments by Electronic Funds Transfer. Call (317) 233-4015 if you have questions on your filing status.

Can I change how often I file my tax returns?

Yes. You can increase how often you file your returns, but you can’t decrease how often you file. All business accounts are reviewed in November and any filing status changes are made at that time.

If I need to add a tax type to a previously registered account can I do this at any time?

Yes. Simply file an updated Business Tax Application.

Why do I have to fill out a different application for each business and/or location?

Each separate location collecting sales tax is required to have a Registered Retail Merchant Certificate displayed in each place of business. Therefore, a separate registration is needed for each location.

Can I consolidate all of my companies under one Indiana tax identification number?

If the companies are separate entities with different federal identification numbers then you cannot consolidate under one tax identification number. However, if you have multiple locations under the same federal identification number you can consolidate under one Indiana TID.

If you want to consolidate tax filings for all or some of your locations, you can complete Form BT-1C (Authorization for Consolidated Sales Tax Filing Number).

To avoid delays in processing applications, please make sure all the applicable information is compete and the form is signed by a Responsible Officer of the company. Please note that the application will be delayed if the business itself has any outstanding tax liabilities.

When you close your business, you are responsible for notifying the Indiana Department of Revenue of the closure. This is typically done by filling out a BC-100 (Business Closure Request Form). Failure to do this can result in billings being issued for failure to file returns. 

Does the State of Indiana have a Voluntary Disclosure Program?

Yes, Indiana has a Voluntary Disclosure Program. If you want to know more about the Voluntary Disclosure Program, you may contact the department anonymously. The department will not in any way seek to identify you if you wish to remain unidentified. To remain anonymous when making the formal application, you can engage a representative, such as a tax preparer, an accountant, or an attorney.

For more information, click here.

How do I resolve a tax protest?

You should have received a letter stating the specifics of your tax protest. The letter will spell out the exact reason(s) for the protest and the steps you must take to resolve it.

You may call (317) 232-5977 to speak to a representative of the Indiana Department of Revenue regarding your specific case.

For more information on resolving a tax protest, click here.

How does a corporation obtain a Letter of Good Standing from the department?

You must submit a written request from a corporate officer or from an authorized representative (a Power of Attorney must be submitted if not an officer). Only original documents are accepted (no facsimiles). The request must be on the organization's letterhead and contain the following:

  1. Official name of the organization
  2. Address of the organization
  3. Federal Identification Number (FEIN)
  4. Date of Incorporation in Indiana or date qualified to do business in Indiana
  5. Corporate officer's signature and title (must be an original signature)
  6. Name and the FEIN of the reporting organization if the organization files as a member of a consolidated group
  7. Other pertinent information, such as a deadline*
  8. Mailing instructions - complete address of where the letter is to be mailed if different from the corporate address

*Due to the significant amount of research required, the approval for a Letter of Good Standing may take 20 to 30 business days for issuance.

Note: All tax returns must be on file and all liabilities must be satisfied before the request will be approved.

Questions may be directed to (317) 232-0129 from 8 a.m. to 4:30 p.m.

Mail the completed request to:
Indiana Department of Revenue
Tax Administration
P.O. Box 6197
Indianapolis, In 46206-6197

My corporation has been administratively dissolved by the Indiana Secretary of State. How do I obtain a Clearance for Reinstatement from the Indiana Department of Revenue?

You will need to submit an Affidavit for Reinstatement (Form AD-19) for an organization that is located in Indiana, or a Form AD-19(2) for an organization located outside Indiana. All requests for reinstatement are reviewed in the order received, with the review process normally taking 20 to 30 business days. You will be notified by mail if any additional information is needed. If someone other than the officer completing the affidavit is to receive information from our office, a notarized Power of Attorney authorizing us to release information must be submitted with your request for reinstatement.

When the affidavit has been approved, the clearance will be mailed to you at the address submitted on the affidavit unless we receive written instructions for correspondence to be mailed elsewhere. You must then submit the original reinstatement clearance to the Indiana Secretary of State with any other paperwork they require. Our reinstatement clearance is valid for 60 days from the date of issue. If time has expired, the clearance will be rejected by the Secretary of State and you will need to start the reinstatement process again by submitting a new AD-19 or AD-19(2) to the department.

For more information, you may call (317) 232-0129 from 8 a.m. to 4:30 p.m.

Mail the completed request to:
Indiana Department of Revenue
Tax Administration
P.O. Box 6197
Indianapolis, IN 46206-6197

How do I obtain a tax clearance on my license?

For more information, click here.

How do I get a private employment agency license?

For more information, click here.

Why is there a tax lien on my vehicle title?

For more information, click here.

Sales Tax

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How much is Indiana’s sales tax?

Indiana’s sales tax is 7 percent. 

Is a Registered Retail Merchant Certificate (RRMC) the same as a vendor’s license?

No. You will need to contact your county clerk’s office to apply for a vendor’s license. The department will issue an RRMC when the Business Tax Application is processed.

Am I required to renew my Registered Retail Merchant (RRMC) Certificate?

Yes. The RRMC must be renewed every two years. If all tax filings and payments are current, you will automatically be sent your renewed certificate. If the business account is missing returns or if there is a balance due to the department, the RRMC will be held until the account is current.

How do I make sales-tax exempt purchases?

If you are buying items that qualify for a sales-tax exemption you can fill out Form ST-105. You provide the merchant with the ST-105 for their records. The merchants will keep the ST-105 for their audit records. You may contact us at (317) 233-4015 if you have specific tax exempt questions.

What if I am entitled to an exemption but I do not have an Indiana taxpayer identification number, nor do I have a business license or registration number from my home state?

You have three options:

Option #1 – The ST-105 form instructions detail other options available to those businesses entitled to exemption, but do not meet the requirements of this form.
Option #2 - You may register with Indiana for free by filing a Business Tax Application (BT-1). Register for "Out-of-State Use Tax" to obtain a taxpayer identification number. Registration will require you to begin collecting Indiana sales tax on sales shipped (sourced) to Indiana locations, unless you receive an exemption certificate from your Indiana customers.
Option #3 - If you can not perform either option above but are entitled to an exemption, you must pay the Indiana sales tax to your vendor and then file for a refund directly with the Indiana Department of Revenue. You will need to file Form GA-110L with the Department.

What is Use Tax?

Use tax is due on property brought into Indiana for use, storage or consumption. Exceptions for this tax may be found in the Indiana Code (IC 6-2.5-5 and IC 6-2.5-3).

Which purchases that I make on the Internet or out-of-state are taxable?

All purchases are subject to the sales tax. If tax is not collected from you by the seller, you are required to remit use tax on the purchase price.

What is the difference between use tax and sales tax?

Both taxes are complimentary and are meant to assure the state gross retail tax of 7 percent is paid upon a purchase. A purchaser pays a “sales” tax when purchasing from an Indiana seller. A purchaser pays a “use” tax when purchasing from an out-of-state seller, but the purchase is delivered into Indiana.

If a purchaser does not pay a sales tax or a use tax to the seller, the purchaser still has a use tax responsibility. The purchaser will pay the use tax owed on his or her annual Indiana income tax return (which is due April 15).

Retail merchants with an Indiana location(s) and/or who perform certain activities, such as solicitation of orders within Indiana, are required to register their business (BT-1) and pay a one-time $25 registration fee, per location. An out-of-state seller without an Indiana location and who does not perform activities within Indiana that would legally require the seller to register (nexus), may voluntarily register to collect the Indiana use tax without incurring a registration fee.

For more information on registering your business, click here.

How can I purchase tangible personal property from Indiana vendors without paying the sales tax if I am qualified to purchase such items for a statutory exempted purpose?

The ST-105 General Sales Tax Exemption Certificate is a multiuse form that can be used by most exempt purchasers. Most exempt purchasers, instate and outstate purchasers, may use this form for most types of Indiana allowed exemptions.

What happened to the exemption forms listed below

ST-104 Agricultural Single Purchase Exemption
ST-106 Agricultural Blanket Purchase Exemption
ST-134 Exemption for Construction Contractors
ST-135SB Sales and Use Tax Exemption (school bus operators)
ST-136A Out-of-State Purchaser's Exemption Affidavit

All of the above exemptions have been included on the ST-105 General Sales Tax Exemption Certificate. As such, the ST-104, ST-106, ST-134, ST-135SB and ST-136A have been deleted from our forms menu.

What are Indiana's previous sales tax rates?

When can a taxpayer report/remit sales tax using an accrual method?

Use Tax Liability

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Who owes Indiana use tax?

Generally, any type of business entity (individual, partnership, corporation, etc.) that makes purchases of tangible personal property is subject to use tax unless it previously paid at least a 7 percent sales tax on the purchase to the vendor. Use tax can be thought of as a mirror of the sales tax. Both our sales tax and use tax rates are 7 percent.

Use tax is due on property brought into Indiana for use, storage or consumption, unless the Indiana Code (IC 6-2.5-5) contains an applicable exemption for your purchase. If you paid at least 7 percent sales tax at the time of purchase, you do not owe a use tax. However, if you did not pay at least a 7 percent sales tax, you may owe use tax.

What type of purchases might cause me to become liable for use tax?

  • Catalog purchases by phone or mail from out-of-state vendors
  • Internet purchases from out-of-state vendors
  • Items withdrawn from your inventory for personal use or to give away
  • Any purchase for which a statutory exemption is not available per the Indiana Code (IC 6-2.5-5)

What are some common examples of purchases I may make that become subject to the Indiana use tax?

  • A dentist operates his/her business as a sole proprietorship. The dentist buys toothbrushes from an out-of-state supply house to give away to his/her patients during their annual exams. The vendor did not collect any sales tax on this sale. The dentist owes 7 percent use tax on these purchases because no statutory exemption exists for this type of item when given away. The dentist should report the use tax on form ST-115.
  • An auto repair shop purchases shop rags and other cleaning materials from an-out-of-state vendor. The vendor did not collect sales tax on the invoice. The auto repair shop should report these purchases on its next sales tax return, form ST-103, because it’s subject to use tax and must remit the 7 percent use tax due.
  • A manufacturer purchases new office furniture for its corporate office use from an out-of-state distributor. The distributor collects its state's 6 percent sales tax on the selling price. The manufacturer owes an additional 1 percent Indiana use tax on this purchase because the property is being used, stored or consumed within Indiana. The manufacturer should report this use tax liability on its ST-103 sales tax return.
  • A law firm maintains an extensive legal library. Many of its legal books, manuals and publications are from out-of-state publishers who do not collect sales tax on items shipped into Indiana. The law firm owes 7 percent Indiana use tax on these type of purchases and can remit these on its ST-103 return if it is a registered retail merchant, or it can use form ST-115.
  • An individual orders magazines, clothing and novelty items from various out-of-state catalog companies. Sometimes the individual orders the items via mail, sometimes via the telephone and sometimes online. This individual should report these purchases to Indiana as being subject to our use tax of 7 percent. The individual can report these purchases on his/her Individual Income Tax Returns (IT-40, Schedule 4; IT-40PNR, Schedule E; or IT-40EZ) or can use form ST-115.

What about items I purchase at garage sales and auctions?

Items sold at garage sales are generally exempted under Indiana's casual sale statute. A casual sale exemption is applicable when the seller is not in the "business" of selling merchandise and the seller has already paid an original sales or use tax on the item. (IB #20)

Items purchased at auctions are slightly more complex. Naturally, if the auctioneer collects the 7 percent sales tax, you will not owe any additional use tax. Also, if the auction takes place on the premises of the owner of the tangible personal property, the items are considered to be "casual sales" and are therefore exempt from sales and/or use tax. However, if the merchandise to be auctioned is moved to a location not owned by the owner of the merchandise, the sales become subject to sales and/or use tax. All sales at auction "houses" are subject to the sales or use tax. (IB #20)

What if I've paid sales tax to another state?

The Indiana use tax rate is 7 percent, same as our sales tax rate. Thus, if you:

  • Paid sales tax of 7 percent or more to the other state, you do not owe use tax to Indiana.
  • Paid sales tax of less than 7 percent to the other state, your Indiana use tax will be the difference between the Indiana 7 percent use tax and the amount you paid to the other state.

Why should I report and pay the Indiana use tax?

If you self-report the use tax due, you will only owe the tax. If you wait until the Department of Revenue issues you a bill for the use tax due, you will have to pay a 10 percent penalty, plus interest. The Indiana Code requires use tax to be paid unless at least an equal amount of sales tax was paid on your taxable purchases. IC 6-2.5-3-2

Withholding Tax

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How do I figure Indiana state withholding tax for my employees?

Departmental Notice #1 explains how to withhold taxes on employees. The current state withholding tax rate is 3.4 percent. The county tax rate will depend on where the employee resided as of Jan.1. If the county is a non-taxing county or the employee is working in Indiana but does not reside in Indiana then the non-resident rate should be used. If you have more questions please call (317) 233-4015.

How do I contact the Indiana Department of Revenue for help with withholding income tax?

The Department is happy to answer any question you may have about withholding taxes. For more information about withholding taxes, click here, or call us at (317) 233-4016.

Who are withholding agents?

Withholding agents are employers who are required by the Internal Revenue Service to withhold income tax on salaries, wages, tips, fees, bonuses and commissions.

To find out if you should withhold state and county taxes for your employees, contact the Internal Revenue Service at (800) 829-4933. If you are required to withhold federal taxes, then you must also withhold Indiana state and county taxes.

Withholding payments must be made to the Indiana Department of Revenue by the due dates or penalties and interest will be assessed.  If you do not file a return and pay the proper amount of tax, you will face criminal prosecution for fraud or tax evasion.

How do I register as a new withholding agent?

Complete and file a Business Tax Application (BT-1) with the Department of Revenue. If you registered with the department previously, you must still file a new BT-1 when you add your first employee.

The responsible officer of your organization may submit your BT-1 online. Processing time for the online application may take up to two business days to review.

Once you have registered, you will receive an Indiana Taxpayer Identification Number that allows the business to be identified in the department’s system.

What information do I need to collect from my employees?

Employees should complete an Employee’s Withholding Exemption and County Status Certificate (WH-4). This form provides the department with:

  • The number of exemptions the employee will claim.
  • The county the employee is living and working in so that the proper county tax rate can be figured.

Both the employer and the employee should keep a copy of the WH-4 for their records. The employee should update the WH-4 when the information changes, such as the number of exemptions.

What do I do if my employees work in Indiana, but live in another state?

Employers must withhold Indiana state tax from the employees’ salaries unless the employees live in a state that has a Reciprocal Agreement with Indiana. For a complete list of reciprocal states, please read Information Bulletin #33 or call (317) 233-4016.

Do I have to withhold state taxes for part-time or summer employees?

Yes. Part-time or summer employees are treated the same as full-time employees.

Are there any cases I would not have to withhold state or county taxes for an employee?

Casual laborers, some domestic employees, ministers and those who receive pension annuities may choose not to have tax withheld from their earnings. However, their income is still subject to state and county tax. If you have questions about your specific situation, please call the department at (317) 233-4016.

How do I make my payments to the department?

You can use INTax, Indiana's free online tax filing program allows you to file and pay your business taxes and much more. With INTax, you can manage your obligations for Indiana retail sales, out of state sales, prepaid sales, metered pump sales, tire fee, fuel tax and withholding taxes. To get started using INTax, click here.

Taxpayers with an average monthly withholding tax payments of more than $5,000 must submit their payments via electronic funds transfer before their due date. All other withholding agents may make their payments via EFT or mail.

Those withholding agents who must file early, monthly, or quarterly will receive the Indiana Employer’s Withholding Tax Return (WH-1). The WH-1 should be completed and returned to the department on or before the due date. All Indiana withholding agents are required to complete and file an annual reconciliation form (WH-3) by Feb. 28 of the following year.

If you have more questions on withholding tax, please call the department at (317) 233-4016. 

What records do I need to keep as a withholding agent?

You should have a correct list of all employees, which includes:

  • list of who is employed by the month, week, or day
  • length of a normal pay period
  • salaries
  • SSN
  • county of residence
  • county of work

What information should I provide my employees for their records?

You should provide each employee with a statement of the amount of state and county tax withheld. This is usually shown on the federal Wage and Tax Statement (W-2). The employee must get a copy of this form by Jan. 31.  A copy of the W-2 should also be sent to the department by Feb 28. If you have more questions about withholding income tax, please visit the department's website or call (317) 233-4016.

How does the department determine when my withholding payments are due?

The department uses the average anticipated monthly wages that are paid to your employees. If there is a significant increase or decrease in your average monthly tax withheld, your filing status will be adjusted.

Monthly average tax withheld Filing Status Due date(s)
$25 or less Annual 30 days after the end of the month
$1,000 or less Monthly 30 days after the end of the month
More than $1,000 Early filer 20 days after the end of the month

W-2 and WH-3 Electronic Filing

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Can files contain more than one employer record (RE)?

Can I upload my WH-3 if I have outstanding liabilities?

After selecting a file to upload, I received a message stating a valid file had not been uploaded. Why?

How do I file my W-2s?

I am getting an error stating my employer ID for the uploaded file does not match the currently selected account. Why?

Is there a document that explains in which format my W-2 file should be for uploading?

Have there been any recent changes to the technical specifications for the W-2 file format?

Is there a size limit for uploading my files?

Do you send files so taxpayers can enter information and upload the file?

I am getting a message saying that the TID does not match. I have looked at my file, and the TIDs are the same. What else can I do?

Can I use an XML or EFW2 file format?

After I have uploaded my file, do I need to send in my paper W-2s?

After I have uploaded my W-2 file in INtax or batch upload, do I need to send in my paper WH-3?

Can I request an extension of time to file?

Composite Filing & Nonresident Withholding

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What is nonresident shareholder withholding?

What is the difference between regular withholding and nonresident shareholder withholding?

What is composite filing?

Can a partner or shareholder opt out of the composite filing?

What form is the individual nonresident shareholder/partner required to file if they opt out of the composite filing?

Is withholding required for those who opt out of the composite filing?

How do I establish a nonresident withholding account?

For those who are included on the composite return can an S corporation or a partnership remit the withholding directly into the corporate account?

How does the partnership/S corporation get access to form IT-6WTH?

How do I remit the withholding after I establish my nonresident withholding account?

What happens if I do not have any withholding to submit to the department? Do I still need to file a WH-1?

What is a WH-3?

What is a WH-18 form?

If I have a withholding account for Indiana residents and a separate withholding account for nonresident shareholders, do I need to file a separate WH-3 for each?

Should the S corporation or partnership follow the nonresident withholding procedures when combining investment income as an overall loss?

If the withholding is greater than the tax due when filing a composite IT-20S or composite IT-65 return, how is the difference refunded?

Is the individual shareholder or partner required to be included on the composite if he or she has a loss on the K-1?

What if there was withholding on the shareholder or partner and on the K-1 it shows a loss – how does the shareholder or partner get his or her money back?

Is withholding required for those who live in a reverse credit state and opt out of the composite filing?

If the S corporation or partnership fails to withhold the proper amount, should the difference be paid with the WH-1U or with the corporate return when filed?

A shareholder or partner has Indiana-source income other than K-1 income. Should the shareholder or partner still be included on the composite return?

Whom do I contact if I have more questions about composite filing or nonresident shareholders?

IT-6WTH

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Who files the IT-6WTH?

IT-20S/IT-65 filers that have members who did not opt out of the composite filing using Form IN-COMPA will file the IT-6WTH to remit the tax reported on those members remaining on the composite schedule.

Do the members who have opted out of the composite remit payment on the IT-6WTH?

No. The withholding for all individual members who have opted out of the composite filing and business members will continue to be electronically filed on the WH-1/WH-3/WH-18s.

When is the IT-6WTH due?

The IT-6WTH is due on the 15th day of the 4th month after the close of the corporate taxable year. An extension of time to file does not extend the time to file payments. Any remittance made after the original due date of the corporate taxable year is subject to penalty and interest.

Can the payment be remitted with the IT-20S or IT-65 instead of the IT-6WTH?

Yes. Payments may be remitted with the IT-20S or IT-65. However, any remittance made after the original due date of the corporate taxable year is subject to penalty and interest.

If I have a loss or no income for Indiana, do I still have to submit the IT-6WTH?

No. If there is no tax due for the composite members, the form does not need to be filed. The IT-6WTH is a payment voucher that should be submitted to the department only when there is a remittance with the voucher.

Why do the IT-65 and IT-20S have both a WH-18 line and an IT-6WTH line?

Line IT-6WTH is used when the withholding is remitted with the IT-6WTH voucher. Line WH-18 is used when nominee withholding is passed through to composite members to reflect their portion of the passed-through credit.

Where can I find a blank IT-6WTH?

The IT-6WTH is currently a controlled form. To receive a copy, you must contact the department to request the form. The request can be made by calling (317) 232-0129 or in writing to:

Indiana Department of Revenue
P.O. Box 7206
Indianapolis, IN 46207

Will the department send the IT-6WTH to my CPA?

If the CPA has a valid POA-1 on file for the entity, the department will print and send a copy of the IT-6WTH to the CPA if requested to do so.

Can the IT-6WTH be filed electronically?

No. Currently the only way to file the IT-6WTH is to remit the paper voucher with a paper check.

If I am remitting withholding using the IT-6WTH for the members remaining on the composite, do I issue them a WH-18?

No. A WH-18 should be issued only to the members who have opted out of the composite filing and had the withholding paid on their behalf into a registered nonresident withholding account using the WH-1/WH-3/WH-18s.

What happens if the composite member fails to opt out of the composite filing but needs to file the IT-40PNR?

If the member does not opt out of the composite filing by the corporate due date, the member is required to be included on the composite return to report their income and tax. Those members who fail to opt out but are required to file the IT-40PNR must include with their return the IN K-1, which will reflect the withholding that has been paid with the IT-6WTH on the member’s behalf as verification of credit.

Can more than one IT-6WTH be filed in a taxable period?

Yes. More than one IT-6WTH may be remitted in a taxable period. Additional IT-6WTH vouchers must be requested by contacting the department. The request can be made by calling (317) 232-0129 or in writing to:

Indiana Department of Revenue
P.O. Box 7206
Indianapolis, IN 46207

Which form is filed if a nonresident member of an S corporation or a partnership has opted out of the composite?

The IT-40PNR must be filed by the nonresident member.

How do I reflect the composite members that are opted out or meet the criteria to be excluded from composite filing on the IT-20SCOMP or IT-65COMP?

The opted out members and members meeting the criteria to be excluded from the composite filing should only reflect the members’ name and will mark the box reflected on column H of the IT-20SCOMP or IT-65COMP. No financial information will be reflected on the composite schedule for the opted out and excluded members.

Billings

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How do I get information about my tax bill?

You can inquire about a tax bill by using the department’s automated information line. This information line is available Monday through Saturday 7 a.m. to 10 p.m. You can find out your current balance due on any individual or business tax liability by calling (317) 233-4018.

You will need to have your tax identification number or Social Security number and the liability number or warrant number available when you call. This information is on the notice that you have received.

If you have a rotary telephone, you may call (317) 232-2165  from 8 a.m. to 5:30 p.m. or (317) 232-2240 from 8 a.m. to 4:30 p.m., Monday through Friday.

What are my rights as an Indiana taxpayer?

All Indiana taxpayers have certain rights and responsibilities that correspond to the Indiana tax laws.

  • Quality taxpayer service
  • Taxpayer Advocate to help taxpayers in the preservation of their rights
  • Taxpayer education and information
  • A fair collection process
  • Appointed hearing time and representation
  • Demand Notices
  • Warrants for collection of tax
  • Judgment liens against property
  • Annual Public Hearing and Department Report

For more information on what these rights mean, click here.

What are my responsibilities as an Indiana taxpayer?

Your responsibilities as an Indiana taxpayer:

  • You should file your tax returns and pay any taxes due on time.
  • You should notify us in writing when you have an address change.
  • You should know the tax laws that relate to you as an individual or a business, and comply with those laws.
  • You should contact us if you have any questions or concerns.

How do I pay my tax bill?

If you are a business wanting to pay your Indiana retail sales, out of state sales, prepaid sales, metered pump sales, tire fee, fuel tax and payroll withholding taxes you can use INtax, Indiana's free online tax filing program that allows you to file and pay your business taxes and much more.

The department accepts MasterCard, Visa, Discover, American Express (by phone only), debit cards, electronic checks, check or money order.

A check or money order should be made payable to the Indiana Department of Revenue. Payments should be mailed to:

Indiana Department of Revenue
P.O. Box 595
Indianapolis, IN 46206-0595

What is the department’s delinquent tax collection process?

Every Indiana taxpayer has the right to a fair collection process. You have the right to protest a liability. If you protest a liability, the department is required to conduct a hearing on that case. You are entitled to be represented at your hearing when your case is presented. If a liability is not paid or protested within 60 days of the first notice, we will issue a "Demand Notice" for payment before issuing a tax warrant. If we do not receive a payment, a warrant for the collection of tax will be issued. When a tax warrant is filed with your county clerk, it becomes a judgment lien (levy) against all your property within the county. The department intends for you to have every opportunity to rectify your account balance whether it is paying it right away or protesting it.

Read about the collection process.
Know your rights and responsibilities as an Indiana taxpayer .

Power of Attorney

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What is a Power of Attorney (POA-1) form?

A taxpayers wanting to authorize a representative to have Power of Attorney on his behalf for state tax matters needs to fill out a POA-1 form. Only when the department has received the properly completed POA-1 form can a department employee speak with the representative about the specific tax types and periods indicated on the form.

Where do I get the Power of Attorney (POA-1) form?

To view a POA-1 form, click here.

Where do I mail the completed POA-1 form?

Taxpayers or their POA representatives can mail the POA-1 form to the following address:
Indiana Department of Revenue
P.O. Box 7230
Indianapolis, IN 46207-7230

Can I fax or email the department a copy of the POA-1 form?

Yes, taxpayers or their POA representatives can fax the POA-1 form to the following number: (317) 615-2605. They also can email the POA-1 form to the following address: poa1forms@dor.in.gov.

Can my certified public accountant (CPA) submit the POA-1 form for me?

Yes, CPAs can submit the POA-1 form for their clients.

Do I need to have the POA-1 form notarized if a family member is my POA?

Regardless of whomever taxpayers designate as their POAs, the POA-1 form does not need to be notarized.

Can I submit an electronic copy of the POA-1 form via email to the department?

Can the department speak to family members without a POA-1 form on file?

Can anyone be my POA, or does it have to be an attorney or a CPA?

If I submi my POA-1 form to my local district office, will my POA representative be able to speak with an employee at any Indiana Department of Revenue office?

I’ve entered my representative’s company name on the POA-1 form. Can the department talk to anyone who works at that firm?

If I email an electronic copy of the POA-1 form to the Indiana Department of Revenue, how do I put a signature on it? Can I just authorize it via a corresponding e-mail?

Can I give blanket permission for my POA representative to receive information for all my tax types and years?

How much will it cost me to file the POA-1 form with the department?

When does my POA expire with the department?

Aircraft

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I am an Indiana resident and I purchased an aircraft. Does the aircraft need to be registered with the State of Indiana?

How do I obtain Indiana aircraft registration forms?

When I register my aircraft with the Federal Aviation Administration (FAA), will the FAA automatically notify the Indiana Department of Revenue?

 I am a nonresident of Indiana (for example, a Delaware Corporation) but base my aircraft in the State of Indiana. Do I have to register my aircraft with the Indiana Department of Revenue?

 What kind of documentation do I need to prove what I paid for the aircraft?

Are there any exemptions to the Indiana Aircraft registration law?

Are there any exemptions from the aircraft sales/use tax due on the purchase of an aircraft?

 If my aircraft is not airworthy, do I still need to register and pay aircraft excise tax annually?

 Are aircraft registration and aircraft excise tax due each year?

Is the aircraft seller or the aircraft purchaser required to report the transfer of an aircraft?

If I sell my aircraft after I have paid the registration and excise tax, can I apply for a cash refund?

An aircraft owner received a “proposed assessment” for registration and taxation of an aircraft, and the purchase price or the year of manufacture is incorrect. What should I do?

I am a nonresident of Indiana and want to have my aircraft repaired at an Indiana repair station. Can I do this without incurring any sales tax or aircraft excise tax liabilities? 

Auto, Watercraft, RV and Trailer Dealers

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I am an Indiana licensed dealer. What form of documentation do I need to document sales tax exemption when selling or trading vehicles, trailers or watercraft with out-of-state dealers?

I possess a new-vehicle manufacturer's franchise to sell specific types/models of vehicles as "new." I have heard there is a new law regarding sales of new vehicles to other dealers where the "resale" exemption is not valid and I am supposed to collect the sales tax even though the sale is to another dealer. Is this true?

My customer lives in another state. If I charge him Indiana sales tax, will he have to pay the sales tax again when he registers and/or title his purchase in his home state?

My customer lives in another state that has a sales tax rate lower than the Indiana 7 percent tax rate. Will the buyer be entitled to a refund for the difference in tax rates?

My customer lives in a state that does not have a sales tax. Does he still have to pay the Indiana sales tax?

I have a customer from a foreign country. Do I collect sales tax on this sale?

What are some of the other exemptions my customer might claim?

As a condition of a sale, a vehicle dealer delivers the vehicle, watercraft, trailer or aircraft across the state line into another state or country where the customer takes physical possession of her purchase. Is this transaction exempt from the Indiana sales tax?

I am an RV and/or cargo trailer dealer.,I have a customer who is a nonresident of Indiana. Should I collect the Indiana 7 percent sales tax on the sale to this customer?

RVs and Cargo Trailers

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How is a recreational vehicle or a cargo trailer defined, for purposes of this exemption from sales tax?

I am a RV and/or cargo trailer dealer. I have a customer who is a nonresident of Indiana. Must I collect the Indiana 7 percent sales tax if the nonresident is going to immediately take the purchase back to his home state to be registered and titled?

Why are some nonresidents exempt, but others are taxable?

I am a resident of a state with either no sales tax or a lower tax rate than the Indiana tax rate. I plan to purchase a recreational vehicle or cargo trailer from an Indiana dealer. I will be registering and titling in my home state. Will I be entitled to a refund for the higher tax paid to Indiana?

I am a resident of a state that has the same tax rate or a higher tax rate than Indiana. I want to purchase a recreational vehicle or cargo trailer from an Indiana dealer and plan to take it back to my state of residence to be registered and titled. Which tax do I have to pay?

The ST-137RV affidavit of exemption form contains the requirement for the purchaser to provide an identification number (Social Security number or Federal Identification Number). I do not want to divulge my SSN and I do not possess an FEIN. What happens if I do not provide the seller with one of these numbers or any other information requested on the exemption form?

I was charged additional sales tax by my home state upon registration and/or titling. I already paid a sales tax to Indiana. Why was I charged additional taxes by my home state?