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Welcome to DOR's Tax Talk Blog

Tax Talk is a weekly blog published each Wednesday by the Indiana Department of Revenue (DOR) that discusses tax tips, DOR programs, and helpful information for tax preparers. During tax season blogs are posted on both Mondays and Wednesdays. 

 

Most Recent Blog Posts

Online Retailers Offered Program to Waive Penalties While Paying Past-Due Taxes

 

July 11, 2018

Are you an out-of-state retailer that sells to Indiana customers but has inventory in a third-party Indiana warehouse? If so, DOR has a one-time voluntary disclosure program that may interest you. The program offers certain retailers, that are not currently in compliance with Indiana tax laws, the opportunity to enter into an agreement to fulfill their tax obligations.

So, what does this mean? Well, many of these retailers are required to pay sales, use, and/or income taxes, but may not have been aware of their tax obligation(s). DOR is working to get all of these retailers in compliance by waiving penalties normally associated with non-filers.

In order to qualify for this program, retailers must meet the following qualifications:

Have inventory located in a third-party Indiana warehouse and sell to Indiana customers

Never filed tax returns in Indiana for the tax type in question

Never registered for the tax type in question

Never been audited or contacted by DOR about the tax type in question

Is not an Indiana resident that has clearly defined sales tax and income tax filing obligations in Indiana

Any retailer approved for this program benefits through a written agreement to decrease the look-back period for taxes owed and an agreement to waive penalties. The retailer also avoids an unplanned audit from occurring.

This special program is in effect until December 31, 2018.

More details on the program and how to apply can be found on the DOR website at www.in.gov/dor/6327.htm.

 

Sparklers, rockets and fireworks! Did you know about the Fireworks Public Safety Fee?

June 27, 2018

It is dusk on July 4th and you’re ready to watch a stunning display of vibrantly colored explosions. While you’re enjoying the nighttime fireworks show, did you know that in addition to the Indiana seven percent sales tax on fireworks, there is also a five percent public safety fee?

Hoosiers spend a great deal of money on fireworks each Independence Day. From sparklers to bottle rockets, if you’re purchasing any items that classify as fireworks, you’ll pay this additional tax.

What’s considered a firework? Any items detonated or burned to produce a visible or audible effect are considered fireworks. These items may include:

  • Firecrackers
  • Roman candles
  • Missile-type rockets
  • Wire sparklers

Vendors who sell these items are required to charge a twelve percent tax on all gross sales (5 percent fireworks safety fee plus 7 percent sales tax). The vendors are also required to register with the local fire marshal and the Indiana Department of Revenue (DOR).

For more information about the Fireworks Public Safety Fee, please visit DOR’s website.