The Project NextDOR team celebrated a rewarding 2019, highlighted by the successful implementation of Rollout 1 on Labor Day. The team worked hard to ensure the project was on time, under budget and delivered two products: a fully functioning tax management system for the agency and an e-services portal (INTIME) for our customers. Our employees and our customers are already benefiting from the additional functionality Rollout 1 enabled, including:
The ability to file all Indiana corporate tax returns, (IT-20, IT-20S and IT-65) through Modernized e-File (MeF). To date, customers have e-filed more than 3,000 IT-20 corporate tax returns. Previously, all IT-20 returns were paper filed.
Customers can also file amended corporate tax returns and pay taxes owed through MeF beginning in tax year 2019.
The launch of INTIME allows DOR customers unprecedented access to their tax records –customers can view correspondence, effectively manage POA (Power of Attorney) relationships and interact with DOR through secured messaging.
Our focus for the coming year is successfully implementing Rollout 2 by Labor Day, 2020. Thirteen different tax types are scheduled for Rollout 2, some include: withholding, retail sales and food and beverage. The Project NextDOR team is currently making progress on the base configuration phase, which is due to be completed on Jan. 17. Base configuration provides the first “hands-on” opportunity for us to evaluate the system and ensure it’s on track to meet our requirements.
The June 30 filing deadline has been eliminated, changing the filing deadline for Form SC-40 to April 15, 2020. A claim or modification for this credit is now subject to a three-year statute of limitations. This change affects returns filed for tax year 2019 and beyond.
Military Retirement Income and/or Survivor’s Benefits Deduction Increase
In 2019, the Indiana General Assembly passed a law to allow a progressive increase in the Military Retirement Income and/or Survivor’s Benefits Deduction.
Eligible DOR customers can deduct up to $6,250 plus an additional 25% of their military retirement income or survivor’s benefits over $6,250 for the 2019 tax year. The amount increases over the next three years as shown below:
2020 – $6,250 plus an additional 50% of eligible retirement/benefits received
2021 – $6,250 plus an additional 75% of eligible retirement/benefits received
2022 – 100% of eligible retirement/benefits received
Do you work in the motor carrier industry or have clients who do? Take a moment and subscribe to DOR’s newest publication,MCS Carrier Connect, to receive updates on changes to motor carrier laws, upcoming projects and initiatives, and announcements. Read the latest issue here.
New Law and Technology Affects Corporate Tax Returns
For tax years ending after Dec. 31, 2019, S Corporations and partnerships that issue 25 or more Schedule IN-K1s to shareholders or partners are required by law to electronically submit information to DOR.
Schedule IN-K1s can be submitted when filing Form IT-20S or Form IT-65 tax returns through Modernized e-File (MeF) using certified electronic filing products.
DOR is in the process of certifying multiple participating IT-20, IT-20S and IT-65 application vendors. Visit DOR’s Corporate Electronic Filing webpage for more information and a list of approved software.
INTIME, DOR’s new online e-service portal for customers, allows electronic payments of corporate returns including:
IT-20, Indiana Corporate Adjusted Gross Income Tax
IT-20S, S Corporation Income Tax
IT-65, Indiana Partnership
FIT-20, Financial Institution
URT-1, Utility Receipts Tax
And allows electronic filing of corporate returns including:
NP-20 Nonprofit Organization’s Annual Report
FIT-20 Financial Institution Tax Return
If you have questions regarding a corporate tax return, you may call (317) 232-0129, Monday through Friday, 8 a.m. – 4:30 p.m., EST. For questions regarding electronic filing on INTIME, select option 1.
IT-20X Form Phasing Out
DOR is phasing out Form IT-20X. Amended returns for tax periods beginning after Dec. 31, 2018, can be filed by using Form IT-20. The provided checkbox must be marked to indicate an amended return. Form IT-20X should be used only when filing amended tax returns for tax periods beginning before Jan. 1, 2019.
New Schedule for Credit Recaptures
Schedule IN-CR replaces Schedule IN-529R and allows individuals to report the following credit recaptures using a single form:
Indiana’s CollegeChoice 529 Education Savings Plan Credit (#837)
Residential Historic Rehabilitation Credit (#831)
The Redevelopment Tax Credit (#863) will be added to this list beginning in tax year 2020.
#DORGivesBack 2019 Recap
Each year more and more DOR team members are getting involved in the #DORGivesBack program to allow team members to truly “give back” to their communities around the state.
#DORGivesBack has not only become an award-winning program, but DOR team members have volunteered almost 700 hours throughout 2019 with nearly a dozen organizations.
The latest event #DORGivesBack participated in was at Gleaners Foodbank of Indiana, sorting close to 13,000 pounds of food which provided roughly 11,000 meals to Hoosiers! Be sure to check back for events and updated numbers for the upcoming year.
DOR On the Move
DOR experts will present at these upcoming events:
Jan. 8, Schererville: National Associations of Enrolled Agents