Electronic Tax Filing Required in 2013

New Law Requires Indiana Businesses to File and Pay Sales and Withholding Taxes Electronically

When the Indiana Department of Revenue first offered electronic filing in 1997, only 882 Indiana taxpayers used it. The Internet has since become essential to everyday living, drastically increasing that figure. In 2012, more than 74 percent of all Indiana taxpayers filed electronically.

But now for the first time, electronic filing and payment will be the standard for Indiana business taxpayers.

This year the Indiana general assembly passed a law that changes the way business taxpayers will be required to file and remit sales and withholding taxes. The new law establishes an electronic filing and payment mandate for all Indiana sales and withholding taxes effective January 1, 2013.

"Electronic file and pay is advantageous to both businesses and the state. It provides a quick, easy and secure reporting mechanism, full time taxpayer access to filing and payment records, and secure payment options. Electronic filing significantly reduces filing and payment processing costs for both business and the state," Commissioner Mike Alley said. "This is clearly a win-win solution for Indiana."

Beginning next year, businesses will be required to file their sales and withholding electronically. The easiest way to file and pay is by using INtax, the Department's free, electronic filing and payment system. Taxpayers can also fulfill mandate requirements by having a third-party vendor or tax professional manage their tax obligations. These third-party agents must file and pay electronically as well.

The Indiana Department of Revenue recommends taxpayers register with INtax and begin filing electronically as soon as possibly to avoid the January rush. INtax features filing and payment history, 24/7 access, ACH debit (electronic funds transfer) and credit card payments, and business tax management from one login.

INtax was designed to be efficient and easy for taxpayers. In fact, according to our most recent survey of new INtax users, 91 percent said they were satisfied with INtax and 90 percent said INtax was easy to navigate. More information about INtax can be found atwww.intax.in.gov.  

If taxpayers fail to register, they risk non-compliance and consequently having to go through the collections process, tax warrants and a possible loss of their Retail Merchant Certificate.

To learn more about the electronic mandate and INtax, visitwww.in.gov/dor/4336.htm or call the INtax Hotline at (317)232-2337.