Commissioner's Corner

By: DOR Commissioner Adam Krupp

As we prepare to turn our calendars to April, millions of Hoosiers and non-resident filers around the country have submitted returns for tax year 2017, and many more will soon follow. Team DOR is working diligently behind the scenes to process taxpayers’ information to make sure their identities are safe, and turn those much-needed refunds around as quickly as possible, all while answering phones later than ever to assist customers in our re-engineered customer service center. This is our peak season, lasting well beyond April 17, and we are committed to delivering best-in-class customer service until each issue is resolved and every refund is distributed. It’s a high-energy environment this time of year, but our staff knows to keep our core mission as their top priority – to serve Indiana by administering tax laws in a fair, secure and efficient manner. 

For those of you who have not yet filed, I encourage you to do so electronically. This trend continues to rise, with over 1.1 million Hoosiers already filing their taxes electronically this season. There are significant benefits to doing so, namely a much lower rate of error (2% versus 20% for paper returns), which means smoother processing, and a quicker turn-around for refunds to be distributed (DOR is averaging 10 calendar days for electronically filed returns resulting in a refund, as opposed to 25 calendar days for those filed on paper). While 25 calendar days, on average, is considered excellent service in our industry for paper returns resulting in a refund, it can feel like an eternity as you wait for the money to arrive. Do yourselves a favor and file electronically – especially if you’re looking to use that refund, be it for business or leisure!

If you have filed for tax year 2017, tell us how we did. We encourage our customers to call  our customer service center at 317-232-2240 or visit your local district office to provide helpful feedback. Part of our new approach to customer service is geared toward being viewed as an ally instead of an adversary. We genuinely want to hear your feedback – good or bad – to better enable us to evolve into a continuously improving operation, one that does not settle for anything less than best-in-class. No system is perfect, and we recognize the occasional substandard experience will occur, but how we work to navigate to resolution speaks volumes about the dedication and commitment to service exhibited by our team.

Lastly, on behalf of the State of Indiana, I appreciate your voluntary compliance! 

DOR revamps website   In a continued effort to provide excellent customer service, DOR has revamped the entire website. A few highlights: DOR main DOR en Espanol Student taxes Tax forms Want to provide feedback on our Spanish Website? Take our survey in English or Spanish. Have other website suggestions? Email them to us at webmaster@dor.in.gov

Integrated Tax System Modernization Project Update

Nearly one year ago, DOR launched the Integrated Tax System (ITS) Modernization Project to replace the 25-year-old Revenue Processing System (RPS), which can no longer meet DOR's needs.

In early-February, the Indiana Department of Administration officially published its Award Recommendation Letter, stating that FAST Enterprises, LLC has been selected as the vendor to implement this new system.  FAST Enterprises is a leading provider of integrated state tax solutions with successful implementations in more than 20 states.  FAST Enterprises’ experts will work alongside DOR employees to configure a new ITS which works with industry-standard technology and helps us adapt to the expanding needs of our customers and partners well into the future.

The new, modernized tax system will be user-friendly, customer-focused and deliver consistent and reliable results.  Customers will have access to a fully integrated self-service portal that will empower them to find information, request services and resolve common issues.  The self-service portal will improve agency productivity by allowing staff to focus on helping customers with more specialized inquires.

The system will be configured, tested, and released in four phases, each covering multiple tax types.  The first release, expected in 2019, is currently planned to address corporate tax filings and expanding electronic filing to include all Indiana corporate tax forms.  

Important Dates

• April 17, 2018- Individual Income Tax Season Ends
• June 19, 2018- DOR's Annual Hearing  

What's new with DOR? 

Want to know what DOR's been up to? Here are some highlights from the last few months: 

• Tax Court: the number of Tax Court cases has decreased by 86% through voluntary dismissals by taxpayers. Only 12 new Tax Court cases were filed against DOR in 2017- the fewest in Tax Court history. 
• Protests: there were less than 180 pending protests at the end of 2017, compared to over 300 in 2016. With only 13% being older than 6 months. 
• New Legislation and Implementation Tracking system: allows over 70 experts to review, collaborate, and contribute to the content of all proposed legislation impacting DOR. This allows our Tax Policy Division to be better prepared to work with the General Assembly.
• Active duty military program: The Taxpayer Advocate Office is in the process of implementing a program for our active duty service members who have an outstanding tax debt and have been materially affected by their service. Call 317-232-4692 for information.
• Customer-friendly communication: Over 800 forms of communication has been reviewed and edited to include more customer-friendly language and ensure compliance with statutory requirements.
• Analytics Team: An expanded analytics team and use of data analytics has been implemented to make smarter business decisions, have improved reporting, and identify non-compliant taxpayers. 

Individual Income Tax 

Non-Filer Program 

The Non-Filer Program started in 2013 to identify individuals who are not filing taxes with the State of Indiana, but should have done so.  This is a collaborative effort with various state and federal agencies to ensure all Hoosier taxpayers are in compliance.

The Non-Filer Program has: 

• Identified 170,000 Hoosier taxpayers who should have filed an Indiana tax return.
• Recouped over $100 million in tax dollars for the state of Indiana.

Learn more about the Non-Filer Program on DOR's website.

2018 Legislative Update

DOR sought the following provisions that were approved by the Indiana General Assembly during the 2018 Legislative Session. Governor Holcomb has ordered a special session for May 2018.

 HEA 1290

• Commercial Vehicle Excise Tax (CVET) (SECTION 19)
• International Registration Plan (IRP) (SECTIONS 33, 34, 35)
• International Fuel Tax Agreement (IFTA) (SECTION 14)

HEA 1311 (DOR Pilot Program)

Need an Extension of Time to File? 

Taxpayers who can’t complete their tax return by April 17, 2018 can complete an extension of time to file. This allows taxpayers more time to get all their information together to file. However, it does not extend the time to pay the tax owed. Find more information on our Extension of Time to File website.

Over $110 million in identity theft and tax fraud stopped The volume of stolen identity fraud has steadily declined from prior years chiefly due to the State’s sophisticated fraud program. What was once $88 million in fraud attempts in 2014 was less than $2 million in 2017. Additionally, increased public awareness of tax scams through news releases, social media, and email communications helps keep Hoosiers aware of tax scams and what to look out for when communicating with DOR or the IRS. Learn more on our Stop ID theft website.

One-time grace period for WH-3 filers to avoid penalties

A one-time grace period for all businesses required to file an Annual Withholding Reconciliation (WH-3) form has been instituted until April 30, 2018. A letter will be sent to businesses that have yet to file their 2017 WH-3, due January 31, 2018 in early April. Businesses can file their WH-3 through Indiana's INtax system.