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									                         2008 Indiana Department
                          of Revenue Tax Update

Monday, April 04, 2011
                           Electronic Filing

           • Nearly 1.9 million filed state return using an
             electronic filing option in 2007

           • 22-percent increase over the same time last year

           • Each electronic return filed saves taxpayers 96

Monday, April 04, 2011
                          Fast, friendly and free

          • Prepare and file Indiana tax returns using the Internet

          • Available to taxpayers and tax professionals

          • Uses a question/answer format

          • www.ifile.in.gov

Monday, April 04, 2011
                         Collection Allowance Changes

                 Change effective for reporting periods after June 30, 2008

           • 0.73 percent if the total sales tax collected was less than

           • 0.53 percent if the total sales tax collected was between
             $60,000 and $600,000

           • 0.26 percent if the sales tax collected was more than

Monday, April 04, 2011
                         Electronic Funds Transfer (EFT) Filers

           • Effective January 1, 2009 EFT taxpayers are
             required to file monthly ST-103 forms rather
             than quarterly recaps

           • Effective January 1, 2009 EFT withholding
             taxpayers are required to file monthly returns
             (WH-1) in addition to the monthly tax payment

           • Annual WH-3 is still required

Monday, April 04, 2011
                Withholding Tax

Effective Jan. 1, 2009 – County tax withheld must
   be broken down by county on WH-1 return.
                          Individual Income Tax

           Renters Deduction - Increased from $2,500 to

           Homeowners Deduction - 2008 taxpayers billed
             and paid property tax payable for 2007 may be
             eligible for up to $2,500 deduction

                 Taxpayers can also be eligible for 2008
                 deduction for taxes normally payable in 2008

Monday, April 04, 2011
                             Military Income

                Military Service Deduction – The maximum military
                service income-tax deduction is increased from
                $2,000 to $5,000 per qualifying person

Monday, April 04, 2011
                            Military Income

            National Guard and Reserve Component Member
            Deduction - For tax years beginning after Dec. 31,

              • For service as a result of involuntary orders
              • During the period the person is deployed or
                mobilized for full time service
              • During the period for which the member’s National
                Guard unit is federalized

Monday, April 04, 2011
                              Military Income

          To take these deductions:

                  • IT-40 Schedule 1 “Other Deduction"

                  • IT-40PNR Schedule D

Monday, April 04, 2011
                           Military Income


           • An individual may be eligible for both deductions
             within a given year

           • Both deductions when combined cannot be
             greater than the total taxable military income
             received during the year

Monday, April 04, 2011
                         Estimated Tax Carryover

                 IT-40 and IT-40PNR – overpayments can be
                 carried over to next year’s estimated tax account

                 Beginning with 2008 tax returns, a remittance
                 can no longer be added for purposed of
                 increasing the amount to be carried over

Monday, April 04, 2011
                         Composite Filer Credit

                S corps and partnership are required to include all
                individual nonresident shareholder/partners on a
                composite tax return at the entity level. Individual
                nonresidents included on the composite return may
                have other taxable Indiana-source income, requiring
                them to file the IT-40PNR. If so, the individual may
                be eligible for a composite filer credit.

Monday, April 04, 2011
                                County Tax

          Counties can adopt or change local income tax rates
            through Dec. 31, 2008. Rates printed in booklets
            may have changed. For the current rates, visit:

          county tax schedules have been modified

                if Lake County adopts local tax, DOR must collect
                certain information for Lake Co distribution purposes

Monday, April 04, 2011
                            County Tax
                         New Schedule CT-40EZ

Monday, April 04, 2011
                         Processing Paper Returns

                Include all information loose in the envelope
                • No Staples
                • No Paper Clips

                1D Barcode will be on most forms/schedules
                  Barcode will identify:
                            • tax year
                            • form type
                            • page
Monday, April 04, 2011
                         2009 Earned Income Credit

                increases from 6 percent of the federal credit to
                9 percent (effective Jan. 1, 2009)

Monday, April 04, 2011

                             Effective Jan. 1, 2009
                you must distinguish between state AGI tax and
                LOIT on the IT-40 ES and ES-40

Monday, April 04, 2011

                           Effective Jan.1, 2009

                nonresident alien can claim only one exemption
                for purposes of figuring withholding tax

Monday, April 04, 2011

                           Effective Jan. 1, 2009

                withholding of AGI from an annuity, pension or
                retirement plan must distinguish between AGI
                tax and LOIT

Monday, April 04, 2011
                         Personal Representative Information

          • Taxpayers can use this area of the tax returns to
            authorize a personal representative
          • Personal representative can be a friend, relative, etc.
          • Authorization can be revoked anytime with signed
          Required information:
                • name
                • Phone number and complete address

Monday, April 04, 2011
                         Paid Preparer Information

                           Required Information:

          • Name/address of firm
          • IN-OPT on file with preparer if not filing
          • ID number
          • Telephone number
          • Complete address
          • Signature with date
Monday, April 04, 2011
                                 Power of Attorney

                         • Individual representative name
                                 • address
                                 • telephone number

                         • Firm or Corporation
                                • address
                                • telephone number

Monday, April 04, 2011
                         Power of Attorney

            The Department will accept a signed, faxed POA.
                • Fax POA to: (317) 615-2736

            We will even accept an electronic image:
               • PDF, JPEG, GIF
               • Email the image to: rabell@dor.in.gov

            Mail to: P.O. Box 7230 Indianapolis, IN 46207-7230

            FAQs visit: www.in.gov/dor/3802.htm
Monday, April 04, 2011
                         Electronic Filing Mandate

                if a professional preparer files more than 100 tax
                return in a calendar year for individuals, those
                returns must be filed in an electronic format

Monday, April 04, 2011
                         Electronic Filing Mandate

                              Effective Jan. 1 2011
                 A penalty for professional preparer of $50 is
                 imposed for each return that is not filed
                 electronically, $25,000 per calendar year.

                 Individuals may opt-out having their return filed
                 electronically. Form IN-OPT must be signed and
                 filed with preparer. Opt-out option must be
                 indicated on the return.

Monday, April 04, 2011
                          CollegeChoice 529
                           New Plan Administrator
           • Account numbers will now be 11 digits beginning
             with “61” or “62”

           • For more information visit:

           • To claim credit you must include the IN-529:
                     www.in.gov/dor/3910.htm IB #98

Monday, April 04, 2011
                           Obsolete Schedules

                forms used to report partnership and/or S
                corporation income (loss) no longer required

                          •   Schedule 3
                          •   Schedule 3A
                          •   Schedule F
                          •   Schedule F1

Monday, April 04, 2011
                         Estimated Corporate Payments

                For taxable years beginning after Dec. 15, 2007, a
                corporation or financial institution is not required to
                file quarterly estimated payment if its annual unpaid
                liability is less than $2,500. The previous limitation
                was $1,000.

Monday, April 04, 2011
            Corporate Information

Qualified Patents Income Exemption
• Income tax bulletin #104
Captive Real Estate Investment Trust
• Effective Jan. 1, 2008 – Corps must add back
  deductions for dividends paid to shareholders of
  a captive real estate investment trust for taxable
  years beginning after Dec. 31,2007
                         Other Indv/Corporate Credits

          Indiana Research Expense Tax Credit Increasing

          Ethanol Production Tax Credit to Include Credit for
            Cellulosic Ethanol
                       • Information Bulletin #93

          Energy Star Heating and Cooling Equipment Tax Credit
                       • Information Bulletin # 100

Monday, April 04, 2011
                         Other Indv/Corporate Credits

           Rerefined Lubrication Oil Facility Credit Repealed
                        • Effective March 20, 2007 – credit is
           Coal Gasification Technology Investment Tax Credit
                        • Information Bulletin #99
           Media Production Credit
                        • Commissioner’s Directive #36
           Ethanol Production Credit
                        • Information Bulletin #93

Monday, April 04, 2011
                            Additional Highlights

                         New Subscription Tool Available

 • After registering, you’ll receive an email to inform you of
   Web site updates

 • Subscribe to the entire Web site or a specific area

 • Choose when you receive emails – Daily, Weekly or

Monday, April 04, 2011
                         Additional Highlights


           • Instant access to file and pay business taxes online

           • Review account history

           • www.intax.in.gov

Monday, April 04, 2011
                         Additional Highlights


           • Form changes

           • Web site suggestions

           • Department interaction

           • feedback@dor.in.gov

Monday, April 04, 2011

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