Form IT-40EZ is Correct - Worksheet Updated
The Indiana Department of Revenue has confirmed that there was an error on the unemployment compensation deduction worksheet in the printed IT-40EZ instruction booklet. There is no error on the IT-40EZ form itself. Only the worksheet that affects a relatively small number of taxpayers had an error.
The same worksheet in I-File (http://www.ifile.in.gov/) is correct. In addition, we have verified with tax software vendors that they have the correct worksheet programmed into their products.
We have corrected the error on the downloadable worksheet found on our Web site (Corrected Worksheet).
Additionally, we have made a programming change in our system to identify any paper IT-40EZ returns that might be impacted by this error, and to automatically calculate the proper deduction. We anticipate that less than 100 taxpayers using the IT40-EZ will be impacted and, if they are, the error is very likely to work to the individual taxpayer’s advantage in terms of reducing any amount of tax due, or increasing a claimed refund.
The Department of Revenue will not be reprinting the IT-40EZ booklets, as relatively few taxpayers today use this particular printed booklet and associated paper forms.
Thank you for your understanding in this matter. If you have questions or concerns, please contact the Indiana Department of Revenue at (317) 232-2240.
Click here for more general information about unemployment and state taxes.
Important 2009 Income Tax Information for Unemployment Recipients
On Dec. 22, 2009, the Department of Workforce Development launched a new Web page to help Hoosiers report their unemployment information on their 2009 income tax returns. In addition, DWD sent a letter to more than 400,000 individuals who received unemployment compensation in 2009. You can find DWD’s new Web page at www.in.gov/dwd/2692.htm
For more information about how unemployment compensation affects an individual’s state return, visit www.in.gov/dor/4261.htm
Tax Preparation Software Approvals for Corporate Returns
Some practitioners have expressed concern that approvals for tax preparation software are taking longer this year than in the past.
Due to vendor programming and testing that was required this year to ensure the 2D barcode forms could process efficiently and effectively through our new imaging technology, the specifications for these forms were a few weeks delayed in being posted. This is a change from previous years, in which 2D barcode software form approvals were posted first as they rarely required any significant revisions.
However, software developers now have the proper specifications to provide their forms for approval. In fact, a number of approvals are in currently in process. The Department is reviewing and approving those software vendor specifications as soon as they are received and we do not anticipate any delays as we move forward.
We do apologize for any inconvenience this has created for practitioners. However, it was a necessary delay to avoid larger or more troublesome delays from occurring when filings are processed. We thank you in advance for your patience and understanding as we work to bring better solutions and long-term improvements to the Department’s operations.
If you have any questions, please contact the Department’s Software Vendor Coordinator Jean Bang by calling (317) 615-2550.
Forms Order Process Changing
The Department revaluated its forms order process for tax practitioners and libraries in an effort to save taxpayer money and bring more efficiency to state government.
Currently the state spends more than $145,000 per year to administer the forms order process, when all forms are already available online via the Department’s Web site.
“Even in high economic times, this seems like an antiquated process to keep funding,” said Stephanie McFarland, director of public relations for the Indiana Department of Revenue. “All forms are available online today for free, and more than 80 percent of Indiana practitioners use software anyway which use our approved forms.”
Tax practitioners will now be allowed to place only one form order per season, with a limit of 25 total forms. The IT-40 packet and IT-40 PNR packet will include the tax form and subsequent schedules. However, each packet counts as one form and tax practitioners are limited to one IT-40 and IT-40 PNR packet this year. For example, a tax practitioner can order:
||IT-40 Packet (limit is one)|
||IT-40 PNR Packet (limit is one)|
Total Forms Ordered 25 (23 stand-alone forms, and 2 packets)
Libraries will no longer have to place form order requests. Each library will receive the same type of forms that they ordered in2009. However, the number of forms they receive will be reduced by 10 percent from last year’s total order amount per branch The Department will also include additional informational signage that libraries can use to help direct their patrons to I-File, the state’s fast, friendly and free online filing system.
As always, all Indiana tax forms (current and previous years) can be found and printed for free and with no limitation directly from the Department’s Web site at: www.in.gov/dor/3489.htmIf you have questions about the Department’s forms order process, please call (317) 615-2581.
Get Critical Updates from the Department of Revenue at Your Convenience
The Department now offers several ways for you to learn about important tax updates:
For previous editions of the Tax Dispatch, click here.
To better serve Indiana taxpayers, the Indiana Department of Revenue may occasionally inform taxpayers of new services and results of a survey or invite a randomly selected group of taxpayers to participate in a short electronic survey or focus group. Electronic communication and surveys enable the Department to inform you about our services and helps the Department learn how to better serve Hoosier taxpayers.
Electronic surveys and e-mail messages from the Indiana Department of Revenue will never ask for any financial or personal information, and survey responses are always confidential.
If you are asked for personal or financial information (Social Security number, bank account information, etc.), do not reply or click on any links in the e-mail message. Legitimate organizations should never ask for personal information by e-mail.
If you would like to further verify an e-mail you have received by the Indiana Department of Revenue, please call (317) 232-2379.
Remember, the Indiana Department of Revenue will never request personal information by e-mail.