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Businesses That File Indiana Sales and Withholding Taxes Must Transition Accounts to New Indiana Department of Revenue System Starting September 8, 2020

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September 8, 2020

By: Kendall A. Schnurpel and Judy L. Woods

On September 8, 2020, the Indiana Department of Revenue (“IDOR”) will begin the second phase of its four-part “Project NextDOR” (“Phase 2”), which will require business customers with sales and withholding tax obligations to begin registering for its new e-services portal, the Indiana Taxpayer Information Management Engine (“INTIME”).

Background

In early September 2019, the IDOR launched the first of four rollouts of a tax modernization project, Project NextDOR, and is launching Phase 2 this month. Project NextDOR’s new technology includes INTIME, a new online e-services portal which will enable Indiana taxpayers to manage their taxes in one location at any time.

In addition to sales and withholding tax, Phase 2 will see Tire Fees, Wireless Prepaid Fees, taxes for Food and Beverage, County Innkeeper, Motor Vehicle Rental Excise, Heavy Equipment Rental, and Use Tax all migrate to INTIME from the prior INtax system. The rollout of the third phase of INTIME, which will include individual income tax accounts, is scheduled for the fall of 2021.

User guides are available to assist businesses as they prepare to move their sales and withholding tax accounts from INtax to INTIME. Businesses may register with INTIME for the Phase 2 migration beginning as early as September 8, 2020.

Newly Created Businesses

When a new business registers with the Indiana Secretary of State through INBiz, it will receive an automated email from the IDOR with a Letter ID and instructions on how to register for INTIME. At that point, the business will create a username and password for its new INTIME account.

Existing Businesses

Existing customers who currently file business sales and withholding taxes via INtax should begin migrating their accounts to INTIME starting September 8, 2020 to continue managing their tax accounts online securely via the new portal.

Businesses will be able to immediately create a username and password for INTIME using a special migration code unique to the specific user and its business access, which will be displayed in INtax on or after September 8, 2020. The IDOR’s INtax to INTIME Migration Quick Start Guide is available here.

While the old (INtax) system will remain accessible from September 8 to December 31, 2020, that system’s functionality will be limited to filing and paying only for current filing periods. The IDOR is encouraging existing customers to switch to INTIME as early as possible to begin taking advantage of new functionalities offered by the new system.

Practitioners

Practitioners will also be able to register with INTIME and import client lists from INtax beginning September 8, 2020. A unique migration code will be provided and an INtax to INTIME Migration Quick Start Guide will be available to assist with the transition process.

After September 8, practitioners will be able to file and pay taxes for existing clients through the old system (INtax) for a limited time, but they will not be able to add new clients within INtax.  INtax will remain available to support the Indiana filing requirement for the 2020 WH-3 (Annual Withholding Reconciliation Form) between January 1 and February 28, 2021.

Practitioners will need to appoint a designated individual to control access to INTIME for their organization. The appointee will need to create the username and password for access to INTIME and review the INtax to INTIME Migration Quick Start Guide to be prepared to register beginning September 8, 2020.  See INtax to INTIME Practitioner Edition here.

If you have any questions regarding information found in this alert, please contact Kendall A. Schnurpel, Judy L. Woods, or your regular Krieg DeVault attorney.