Indiana
Sales Tax Nexus
Effective retroactive to January 1, 2024, retail merchants without a physical presence in Indiana are required to collect and remit sales tax based on a sole trigger--gross revenue from any combination of:
- The sale of tangible personal property that is delivered into Indiana.
- A product transferred electronically into Indiana.
- A service delivered in Indiana that exceeds $100,000 for the calendar year in which the retail transaction is made or for the calendar year preceding the calendar year in which the retail transaction is made.
Prior to January 1, 2024, a retail merchant was required to collect and remit Indiana sales tax if they had 200 or more separate transactions in the state during the current or prior calendar year. Effective January 1, 2024, Indiana only has the $100,000 threshold. If a merchant met the 200-transaction threshold in 2023 but not the $100,000 threshold, they may close their sales tax account in 2024 if they do not have $100,000 in sales in 2024. They will still have to file all required sales tax returns for 2024.
See the Indiana Department of Revenue website for more information:
https://www.in.gov/dor/business-tax/remote-seller-information/
Pass Through Entities (PTE)
Effective retroactive to January 1, 2022, with regard to tax paid on behalf of an electing PTE, a PTE may not treat an amount less than its own pass through entity tax (PTET) liability as PTET to its direct owners.
Statute of Limitations Changes
Effective July 1, 2024, the legislation defines a "periodic tax" as a listed tax for which a return or report is required to be filed and the tax is required to be remitted four times or more in a calendar year. The term does not include estimated tax payments or withholding payments. If a provision of the law relating to a listed tax permits a taxpayer to file returns or reports or remit the tax less frequently than four times per calendar year, the listed tax is considered a periodic tax for a taxpayer who files or remits less frequently.
The legislation also sets a uniform due date of January 31 of the year after the calendar year for which the return is filed for all periodic taxes.
Confidentiality of Tax Information
Effective July 1, 2024, the Department may share a taxpayer's name and other personal identification information with a tax preparer or tax preparation software provider. This applies in cases where the Department suspects that a fraudulent return has been filed on behalf of a taxpayer and the Department suspects that the system of a taxpayer's previous year tax preparer or tax preparation software provider has been breached.
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