The Indiana Department of Revenue (DOR) actively promotes voluntary compliance through numerous yearly projects. This year, DOR will issue the CP2000/Discrepancy Billings for the 2020 tax year beginning Nov. 22.
A discrepancy bill is issued when the income of the federal return does not match the income reported on the state return. A CP2000 billing is issued when the taxpayer has unreported income with the IRS, which creates a billing at the federal level. After receiving the bill from the IRS, the taxpayer should amend their Indiana return to reflect these changes. Failure to amend the state return to account for this discrepancy in AGI results in DOR generating a bill for this same unreported income.
Due to the timing of reporting and recognition of the amendment process, DOR generates these bills a couple of years after the reported tax year.
Legal Protests added to INTIME
Legal protests may now be submitted through INTIME. The customer portal provides additional privacy safeguards and confirms that your protest submission has been received. INTIME guides are available to walk you through creating an account. Refer to the Protest & Administrative Hearing Guide on DOR’s website.
However, all protests for motor carrier related fees and penalties may continue to be submitted by email to LegalServices@dor.in.gov and must be accompanied by the Motor Carrier Services Protest Submission Form (State Form 53036).
As of 10/02/2023 protests may no longer be submitted via email to DORAppealsreview@dor.in.gov. DOR representatives will respond to emails received prior to 10/02/2023.
Find all other contact information at dor.in.gov or call Customer Service at 317-232-2240 Monday–Friday, 8 a.m.–4:30 p.m. ET.
Important Notice to Taxpayers Using ACH Credit
The Indiana Department of Revenue is making an important change in electronic tax payments by Automated Clearing House (ACH) credit. Beginning July 5, 2023, the State receiving bank account number for tax remittance via ACH credit will change for several tax types, including Streamline Sales Tax. Taxpayers using ACH Credit have until Aug. 31, 2023, to change the account number to avoid delays and interruptions. For more information and the account number for your tax type, refer to the Electronic Payment Guide.
Designated Disaster Counties Granted Tax Filing Extensions
People in specific counties in Indiana and other states are eligible for filing extensions.
Update: Nonprofit Requirements and Annual Reporting
Nonprofit customers with an open, active account and a recorded sales tax exemption received a letter in Nov. 2022 detailing upcoming changes to sales tax requirements and annual report filings. Legislation has passed new laws for nonprofit customers effective July 1, 2023. Visit the Nonprofit page to view updates.
2023 Legislative Synopsis for General Session Available
The 2023 Legislative Synopsis includes legislation passed by the General Session of the 2023 Indiana General Assembly. To find laws contained in Indiana Code, acquire more information about recently passed legislation, or to read the bills in their entirety, visit the Indiana General Assembly's website.
Repeal of Utility Services Use Tax and Utility Receipts Tax
Indiana repealed Utility Services Use and Utility Receipts taxes effective July 1, 2022. Although these laws are repealed, you must still file any past-due returns and pay taxes due to DOR.
If you are subject to Utility Services Use Tax, you need to file a final Form USU-103 by August 1, 2022, for the tax period ending June 30, 2022. You must file Form USU-103 even when no tax is due, unless your Indiana tax account has been closed properly. The Indiana Department of Revenue (DOR) will continue to accept payments for all filing periods prior to June 30, 2022.
If you are subject to Utility Receipts Tax, the 2022 tax year will be your last filing period. You will still file your return and owe this tax for periods collected from January 1 – June 30, 2022. You must file Form URT-1, Indiana Utility Receipts Tax Return, for tax year 2022, on or before April 18, 2023 or, for fiscal filers, the 15th day of the 4th month after the end of the taxable year that includes June 30, 2022. Instructions on completing Form URT-1 will be updated to reflect the repeal of this law. Do not file the 2022 URT-1 on a 2021 or previous tax form. 2022 URT-1 forms will be available later this year.
You do not need to file and pay estimated payments for any quarters that begin after June 30, 2022. DOR will issue refunds as necessary to customers who made estimated payments and overpaid the amount of tax owed for 2022.
Update on Unemployment Benefits and Taxes
On April 22, the Indiana General Assembly did not adopt certain provisions of the current Internal Revenue Code and Governor Eric Holcomb signed this into law on April 29. As a result, Indiana taxpayers cannot use the federal unemployment compensation exclusion on their 2020 Indiana individual income tax returns and that income must be added back in. They may, however, still be able to deduct some portion of their unemployment income on their state tax return in accordance with Indiana’s current tax laws. See DOR’s “Unemployment Benefits and Taxes” page for more information and instructions.
Increase in Gasoline License Tax and Special Fuel License Tax
P.L. 218-2017 requires the department to publish the new rates effective July 1, 2023, for the gasoline license tax (IC 6-6-1.1-201) and special fuel license tax (IC 6-6-2.5-28) on the department’s Internet website no later than June 1, 2023. For the period July 1, 2023, to June 30, 2024, the following rates shall be in effect:
- Gasoline license tax: $0.34/gallon
- Special fuel license tax: $0.57/gallon
School Scholarship Tax Credit Update
A School Scholarship Tax Credit is available for individuals or corporations who donate to scholarship-granting organizations (SGOs).
See more information and subscribe to email updates for the School Scholarship Tax Credit.
Notification to Gasoline Distributors
See Departmental Notice #2 for the latest gasoline use tax rate.