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Indiana Department of Revenue
Tax PractitionerResource Packet
Updated Aug. 2020
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Tax Practitioner Service and Support
The Indiana Department of Revenue (DOR) recognizes the crucial role practitioners serve in helping clients with tax filing obligations. Your vast experience, attention to accuracy and care for your clients leads to fewer issues for our customers. We know customers often come to you with questions and you’ll need to contact us. Since Practitioner needs are often more complex than those of the general population, DOR operates a number of special services to support the needs of the tax practitioner community.
DOR Tax Practitioner Hotline: (317) 232-2240, option 2This line is staffed with DOR’s most senior customer service representatives, team leads and tax analysts. Our service level goal for these lines is to answer 90% of all calls within five minutes. By state law, we require a Power of Attorney (POA) to be on file to discuss your client’s account with you. Your client may authenticate their identity and give consent to allow you to discuss their matter during a phone call while your client remains present.
Please do not share the DOR Tax Practitioner Hotline outside the tax practitioner community, as this is a dedicated resource.
Additional Resources• Tax Practitioner Fax: (317) 972-3241• Tax Professional Webpage: dor.in.gov/tax-professionals• Online Inquiry Center: dor.in.gov/tax-professionals/tax-
professionals-inquiry• Tax Practitioner Email: [email protected]• In-person service at DOR’s 12 locations (downtown
Indianapolis and 11 district offices), more information available at dor.in.gov/contact-us/district-office-contact-info
Outside Collection Agency Partnership
DOR has contracted with United Collection Bureau (UCB) to provide collection services for the agency. UCB provides a tax practitioner hotline, giving practitioners direct access to dedicated, experienced customer care representatives who can address issues with active DOR liabilities on their clients’ behalf. Prior to calling the hotlines, tax practitioners should have POA information and a DOR Tax Identification Number (TID) and/or Warrant number.
• UCB Tax Practitioner Hotline: (844) 559-4313
This number is a dedicated resource, so please do not share it outside the tax practitioner community. If clients wish to contact UCB directly, they may call (866) 209-0622 to speak with a Customer Service Representative.
If a tax return is filed with a balanceowed and without payment, DOR sends a
Notice of Proposed Assessment(AR-80/NOPA)
Customer has 60 days to appeal or pay the balance.
Past Due TaxResolution Process
If the balance goes unpaid orunacknowledged after 60 days, DOR sends a
Demand for Payment(AR-40/DFP)
Customer has 20 days to pay the balance.
If the balance goes unpaid, DOR sendsto County Clerk to create a tax warrant.
Clerk Tax Warrant(WAR-C)
Sheriff Warrant(WAR-S)
Sheriff has 120 days to collect.
If Sheriff is unable to collectpayment, DOR sends the balance to an
outside collection agency.
Agency Warrant(WAR-A)
After warrant is registered with the County,DOR send to Sheriff for collection efforts.
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Taxpayer Advocate Office
TAO Practitioner Hotline: (317) 232-4692, Option 7The Taxpayer Advocate Office (TAO) assists customers in fixing problems that have not been settled through other DOR programs and is a final resource to resolve customer issues. TAO is designed to address complex and special tax problems that could not be resolved through the normal collection process. More information on accessing TAO services is available at dor.in.gov/contact-us/taxpayer-advocate-office.
Claim for HardshipThis program is for customers that are facing financial or medical situations that do not allow them to pay within the normal time limits offered. Customers may qualify for the Hardship Program if:
• The customer or an immediate family member has a critical or terminal illness or disability.• The customer has experienced a recent personal devastation resulting from a natural disaster or
uncontrollable event.• The customer is facing a financial hardship due to recent unemployment or forced job change.• The customer’s livelihood is threatened by the outstanding tax debt.
Offer-in-CompromiseTo apply for the Offer-in-Compromise program, a customer or their representative will be required to submit one of the following items:
• DOR’s Offer-in-Compromise application with all required documentation.• A copy of the Offer-in-Compromise application submitted to the IRS along with all required documentation.• A copy of the approved Offer-in-Compromise with the IRS, a copy of the Offer-in-Compromise application to
the IRS with all required documentation, proof of debt to the IRS at the time of the IRS application and letter of approval from the IRS.
TAO will determine whether the amount offered is the largest possible amount which realistically can be collected, and determine whether the offer is in the best interest of the State. The offer is normally paid in full within 60 days or less; however a payment plan will be considered if the customer has demonstrated the need. The payment plan length will be established by TAO.
Tax Warrant ExpungementDOR may grant a request to expunge a tax warrant for the following reasons:
• Issued in Error – if it is determined that the warrant was issued in error.• Best Interest of the State – after reviewing the request and researching additional factors.• DOR’s Discretion – after reviewing the request and researching additional factors, including filing compliance,
date of issuance and pending litigation.
You can find additional information on Tax Warrant Expungements at dor.in.gov/contact-us/taxpayer-advocate-office/tax-warrant-expungement.
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Active Duty MilitaryThe Indiana Servicemembers Civil Relief Act (SCRA) allows DOR to assist active duty military members with the penalty, interest and, if materially affected, the collection activity for outstanding tax debts. To qualify for this the servicemember must be:
• An active duty, full-time, servicemember of the Army, Navy, Air Force, Marine Corps or Coast Guard.• Commissioned corps of the NOAA and the Public Health Service if in active duty service status.• National Guard if called to active service for more than 30 consecutive days for purposes of responding to a
national emergency and supported by federal funds.• Indiana only: National Guard members that are ordered to active duty.
SCRA provides different provisions to servicemembers that are materially affected and those that are not materially affected. DOR will consider all relevant facts and circumstances in determining whether a servicemember’s ability to pay is materially or not materially affected by their active duty status.
Incarcerated Individual AssistanceIndiana Code 6-8.1-10-2.1 provides relief from certain penalties and interest accrued during a person’s incarceration. To qualify for this waiver, you must provide DOR with documentation showing that you are or were incarcerated for a period of at least 180 days.
A customer meeting these qualifications must contact the TAO for assistance. Documentation of the incarcerated time period is required to be submitted. If the individual is currently incarcerated, the Taxpayer Advocate will work with the appointed POA if necessary. The office may also be able to assist with the collection process if still incarcerated.
Contact InformationIndiana Department of RevenueTaxpayer Advocate OfficeP.O. Box 6155Indianapolis, IN 46206-6155
• TAO Practitioner Hotline: (317) 232-4692, Option 7 • TAO Fax: (317) 232-5425• TAO Email: [email protected] • TAO Webpage: dor.in.gov/contact-us/taxpayer-advocate-office, includes information & forms• Warrant Expungement Request: dor.in.gov/contact-us/taxpayer-advocate-office/tax-warrant-expungement,
includes information & form
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DOR Appeals Process
DOR accepts written appeals up to 60 days from the date the proposed assessment or refund denial is issued. The 60-day deadline to file a written protest with DOR is set by statute and cannot be extended. DOR has created four options when filing a protest: settlement, audit review, administrative appeal with a hearing or administrative appeal without a hearing. DOR uses a time-based metric to monitor protest results. The overall goal is to resolve protests within 110 days.
Contact and Additional Information• Legal Division Phone Number: (317) 232-2100• Legal Division Website: dor.in.gov/legal-resources/appeals • Protest Guide: dor.in.gov/files/dor-protest-guide.pdf
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DOR Communications
Tax Bulletin E-Newsletter
Tax Bulletin is DOR’s monthly e-newsletter for both tax practitioners and businesses. When you subscribe to Tax Bulletin you will also receive regular updates that include agency announcements and blogs, to ensure you are up to speed on DOR announcements and events. Subscribe at dor.in.gov/news-media-and-publications/indiana-tax-bulletin-e-newsletter.
Agency Announcements You can view and subscribe to receive agency announcements from DOR by visiting dor.in.gov/news-media-and-publications/agency-announcements.
Tax Talk Blog DOR’s Tax Talk blog is a weekly blog published each Wednesday. During tax season blogs are posted on both Mondays and Wednesdays. The blog discusses tax tips, DOR programs and helpful information for tax preparers. You can subscribe to the blog at dor.in.gov/news-media-and-publications/tax-talk.
Tax LibraryAccess Information Bulletins, Departmental Notices, Annual Reports and more by visiting DOR’s Tax Library page at dor.in.gov/legal-resources/tax-library.
Subscribe TodayIn addition to our e-newsletter, agency announcements and blog, DOR also offers email subscriptions for website updates and most of our Tax Library sections. To receive these updates, visit public.govdelivery.com/accounts/INDOR/subscribers/new and follow the registration steps.
Social Media Connect with DOR, at @INRevenue on the following social media outlets:
Find us on LinkedIn at linkedin.com/company/indiana-department-of-revenue/
REVENUETAX BULLETIN
Improv ing Compl iance Through Enhanced Audi t Techn iques
The Indiana Department of Revenue
Tax compliance, error detection and fraud
prevention is a complex and ever-changing
component of federal and state tax
administration. The Indiana Department of
Revenue (DOR) partners with government and
private sector leaders to monitor trends, utilize
best-practices and continuously improve its
programs in these critical areas.
Filing errors and intentional fraud in reporting of
business losses (Schedule C) are two areas that
continue to receive a lot of attention across the
country. This in turn, resulted in DOR enhancing
its desk audit program to focus attention on
Schedule C filings.
DOR’S SCHEDULE C AUDIT PROGRAM
The goals of this program are to identify and
correct filing errors, educate customers and
improve Schedule C compliance. As part of
DOR’s individual tax return data verification,
Schedule C reviews are conducted to assess the
validity of the data and prevent overstated or
fraudulent refunds from being issued. Results
have been positive as the program has identified
filers who make errors, inflate income to receive
the maximum earned income credit and/or
inaccurately report business deductions.
4.5K2017 Schedule C
Letters Sent
16K2018 Schedule C
Letters Sent
12K2019 Schedule C
Letters Sent
From 2017 to 2019, results have been
analyzed and DOR has received excellent
feedback from both customers and
practitioners on how to improve and
simplify the process. Numerous process
improvements were implemented in 2019,
including enhancing the audit letter
selection logic, limiting the review to only
large expenses and creating a dedicated
customer service team to assist customers
with program or processing questions.
NUMBER OF SCHEDULE C REVIEWS
In 2017, approximately 4,500 returns
were selected for a Schedule C audit. Based
on program results, these efforts were
expanded to nearly 16,000 returns in 2018,
and over 12,000 returns in 2019.
While not full scope audits, these
reviews are conducted in the Audit division
by specialized team members. Typically,
after requested documentation is received
desk audits are conducted and
determinations are made within one week.
2019 Report
32KTotal Schedule C
Letters Sent from
2017 to 2019
256%Increase in
Credits/Deductions
Stopped from
2017 to 2019
2017 2018 2019
7,500,000
5,000,000
2,500,000
0
From 2017 to 2019, the amount
of errors corrected and fraudulent
credits/deductions stopped has
increased, even with a decrease in
the number of deduction verification
letters sent in 2019.
The 2019 adjustment total, which
includes the Schedule C program,
was $6.1 million, up from just $1.7
million in 2017.
Moving forward, DOR will continue to
work to improve this program by
incorporating feedback from
customers, CPAs, other state
agencies and the Internal Revenue
Service.
Additional enhancements for the
2020 program will include additional
logic enhancements, enhancing the
audit letter and moving audits that
are not holding up a refund to
outside of tax filing season.
Results Fraudulent
Credits/Deductions
Stopped by Year
Total Errors Corrected andFraudulent
Credit/Deductions Stoppedfrom 2017 to 2019
$11.5million
INfreefile Program Recap 2020
As of August 9, 2020
Total INfreefile users for tax seasons:
• 2019: 89,099 total INfreefile users
• 2020: 114,778 total INfreefile users
29% increase (there was a 6% increase from 2018 to 2019)
Website statistics
• 2020: 122,007 visits to INfreefile webpages
o This includes the main free file site and returning users. We
added FAQs to the main free file page this year.
o Peak days for website traffic were Feb 1, Feb 26, April 14 and
July 15.
• All certified INfreefile vendors published on the webpage Jan. 23,
2020.
Emails
• Targeted emails sent out to several groups including: o Last year’s paper filers with AGI less than 66K—63,609 recipients, 43% open rate
o College student media—639 recipients, 26% open rate
o Users that utilized INfreefile in the past several years—41,855 recipients, 44% open rate
o Individual Income Tax List—19,865 recipients, 25% open rate
Newsletters
• Included in all Tax Bulletins starting in Jan.—23,136 subscribers
• Sent out information on the program monthly (Feb-April and June) in the Indiana state employee
newsletter, sent info monthly in the weekly newsletter for Indiana state employees located in
Indianapolis.
Agency Announcements
• Two agency announcements were sent directly about INfreefile:
o Over 94,000 Hoosiers Have Taken Advantage of Free Tax Filing in 2020 (April 30)
o 1.9 Million Hoosiers May Have Missed Out on Free Individual
Tax Filing in 2019 (Feb 4)
• INfreefile included in several other agency announcements as listed below:
o Skip the Paper, File Electronically to Get Your Refund Faster
(Jan 30)
o Filing Your Taxes Confusing? Help is Available! (Feb 20)
o Just One Month Left to File Your Individual Income Taxes for
the 2020 Tax Season (June 15)
o Just Two Days Until Tax Day 2020 (July 13)
o Top Facts: Today is Tax Day (July 15)
• Information included in tax season media kit—video, fact sheet.
Tax Talk Blog
• 5,871 subscribers, average open rate 27% o 2020 Tax Season is Open! Have You Thought About Filing Electronically? (Jan. 29)
o Filing Taxes for the First-Timer – DOR has Tips for You! (Feb. 10)
o Common Tax Mistakes and How to Avoid Them (March 11)
o Owe Income Tax? Paying Through DORpay is the Best Way (April 22)
o 2020 Tax Season Closes Soon (July 8, 2020)
Social media
• 30 posts throughout tax season on INfreefile o Facebook, Twitter and LinkedIn-- @INRevenue
o Graphics created for holidays and specific groups—examples provided below
Graphics
• Poster: Kept the same INfreefile poster as last year posted throughout the State Government Centers
and DOR district offices.
• Postcards: Libraries indicated they did not have space to hang posters and requested something
smaller, each library received approximately 100 INfreefile postcards. Postcards were sent to over 50
libraries.
Indiana Department of RevenuePayment Options
Current Indiana Department of Revenue Payment Plan Options
Liability Balance Minimum Required Down Payment*
Maximum Payment Plan Period**
Tax Type: Individual
$0 - $100 N/A Full Payment Required
$101 - $1,000 0% 12 months
$1,001 - $5,000 0% 24 months
$5,001 and above 0% 36 months
Larger Liabilities 0% > 36 months***
Tax Type: Business
$0 - $500 0% Full Payment Required
$501 - $1,000 0% 12 months
$1,001 - $5,000 0% 24 months
$5,001 and above 0% 36 months
Larger Liabilities 0% > 36 months***
Additional Notes
* DOR Payment Services Representatives will attempt to obtain some form of down payment ** DOR Payment Services Representatives will attempt to negotiate a period up to the maximum allowed*** DOR provides flexible options for payment due dates. The date must be at least 30 days from the date the payment plan is established. DOR works with the taxpayer to establish the due date.
Schedule C Report The following Schedule C letters and adjustments are from the last 3 years.
Tax Year Letters Sent Adjustments # Returns Adjusted TY2019 10,626** $1.123.882 1,654 TY2018 12,632 $4,686.048 7,887 TY2017 17,011 $5,273.126 10,864
**DOR has roughly 5,500 returns where the taxpayer has not responded to our letter. Many of these will result in adjustments. We also have another 550 returns we are awaiting a response from the taxpayer. Additional letters are being mailed on a daily basis as returns are filed. We are also conducting a project on the Form 2106 since it can be used like a Schedule C. These projects are often looked at exactly the same. Qualifications to utilize this Form changed significantly in 2018. Form 2106
Tax Year Letters Sent Adjustments Returns Adjusted TY2019 1,219** $135,196 265 TY2018 0 $470,949 899
**DOR has roughly 550 returns where the taxpayer has not responded to our letter. There is also another 60 returns where we are still awaiting a response from the taxpayer. Note: Letters were not sent on this program in 2019 for TY 2018. Returns were adjusted and notices were sent as part of a standard return adjustment notification letter. Modifications were made this year to ensure letters were sent in advance of adjustments.
Project NextDOR Update Kevin Gulley, Chief Information Officer
INDIANA DEPARTMENT OF REVENUE
• Rollout 1 Success
• Approach – Rollout 2 Level Set
• Roadmap – Where are we?
• Customer Focus – Benefits
• What’s Next?
Agenda
Rollout 1 Success
View File Pay File & Pay
Aircraft Dealer
Aircraft Excise
Corporate
Financial Institutions
Non-Profit
Partnership
S-Corporate
Utility Receipts
IRS e-FileGateway
Starting Sept. 8, 2020
• Retail Sales • Food and Beverage
• Withholding • County Innkeeper’s
• Tire Fee • Consumer Use
• Utility Service Use • Heavy Equipment Rental
• Motor Vehicle Rental • County Admissions
• Indianapolis Motor Speedway • Wireless Prepaid Fee
Tax Types – Rollout 2
Customer Focus – Brands
Corporate Income & Business Taxes
• File & pay for sales/withholding
• Register for new sales tax types
• Change your location
• Request a transcript for recently
filed returns
• Pay corporate income obligations
• Setup & manage payment plans
• File & pay Utility Receipts
• Register & file Aircraft
• Register & file Nonprofit
• View correspondence
(letters & bills)
• Secured messaging
Individual Income Taxes
• Pay a bill
• Estimated payments
• Return payments
• Extension payments
Business Taxes*
• File & pay
• Pay a bill
• Secured messages
*(i.e., motor fuel,
alcohol, cigarette &
other tobacco
products)
Business
Registration
• Register new
business with the
Secretary of State
• File a Business
Entity Report
• Tax registration
• Order a Certificate
of Existence
Customer Focus – Watch Items
• How do I migrate from INtax to ?
• What can I do in INtax until when?
Rollout 2 – What’s Next?
• Conversion
• Testing
• Training
• Cutover Activities
September October November December
Customer Milestones:
Rollout 2
• Rollout Support
Rollout 3
• Preparation Phase
Rollout 3
• Preparation Phase
• Definition Phase
Rollout 3
• Definition Phase
• Base Configuration
Phase
Rollout 3
• Base Configuration
Phase
• Migrate to INTIME
• File/Pay on INTIME
• File/Pay Temporarily on INtax
• Migrate to INTIME
• File/Pay on INTIME
• File/Pay Temporarily on INtax
• Migrate to INTIME
• File/Pay on INTIME
• File/Pay Temporarily on INtax
• Migrate to INTIME
• File/Pay on INTIME
• Last Tax Period to File/Pay on INtax
What Happens After Rollout 2?
As a result of the COVID-19 pandemic, DOR suspended and altered several programs and procedures to provide relief for Hoosiers. Starting in July 2020, DOR is working to return to normal operations. The timeline below outlines these changes.
DOR’s Back on Track Plan 2020
August 2020• The Offer in Compromise time frame for submission of records returns to normal. • Business and special tax customers that have not filed the required tax returns
for April - May 2020, will receive a Proposed Assessment Notice via U.S. mail.
July 2020• Customers with outstanding tax liabilities for corporate, individual and special
taxes, that were due prior to March 2020, will begin receiving notices and bills via U.S. mail.
• Business and special tax customers that did not file required tax returns due from Jan. – March 2020, will receive a Proposed Assessment Notice via U.S. mail.
• Aeronautics/aircraft and motor carrier oversize/overweight customers with outstanding liabilities or civil penalties will begin receiving bills via U.S. mail.
• Tax liabilities that have reached the tax warrant stage, will resume being worked by county sheriffs and United Collections Bureau (UCB), DOR’s outside collections partner.
• Any employers who did not file their WH-3 (withholding) forms, due Jan. 31, 2020, will receive a bill via U.S. mail.
• The time allowed to submit a legal protest returns to 60 days.• The time allowed to request a protest rehearing returns to 30 days.
July2020
August2020
October 2020• Individual income tax filers who have a discrepancy between their federal and
Indiana Adjusted Gross Income (AGI), will receive a bill via U.S. mail, if there are additional taxes owed.
• Special tax customers that did not file required tax returns due in July 2020, will receive a Proposed Assessment Notice via U.S. mail.
• Business customers that did not file expected tax returns for 2020, will receive a reminder notice via U.S. mail.
• Involuntary collections actions (including levies) will restart for selected cases on Oct. 1, 2020.
September 2020• Individuals with tax liabilities associated with their 2019 tax return (filed in 2020),
will begin receiving bills via U.S. mail.• Special tax customers that did not file required tax returns due in June 2020, will
receive a Proposed Assessment Notice via U.S. mail.• Business customers will receive notices and bills for taxes due prior to March
2020, via U.S. mail. Warrants issued for these customers will be pursued by sheriffs and UCB.
• Processing of expired or expiring Registered Retail Merchant Certificates (RRMCs) will resume. Impacted businesses will be required to pay taxes owed for their RRMC to remain active.
September2020
October2020
dor.in.gov (317) 232-2240
Need to contact DOR?
More information on DOR’s COVID-19 response can be found at: dor.in.gov/coronavirus-information
