State DOR Provides Additional Relief for Indiana Taxpayers

In recent weeks, the Indiana Department of Revenue (DOR) has responded to the COVID-19 crisis with multiple relief options for Hoosier taxpayers. Some of the more widely covered options include suspension of most tax filing bills and flexibility in determination of nexus. But there are others that should be noted and taken into account, especially by Indiana business owners. Important measures include:

• Certain motor carrier and ITFA filings and payment requirements have been extended.
• Expiring Registered Retail Merchant Certificates have been extended to June 30, 2020.
• Installment payment plan agreements have been offered up to 60 months.
• The creation of most tax filing bills, new warrants, and liens have been suspended.
• The creation of new sheriff and collection agency collection cases have been suspended.
• The current 60-day legal protest window has been extended an additional 60 days for a total of 120 days.
• Certain record submission requirements for new Offer in Compromise case creation have been relaxed.
• Recognition that the department will have to be flexible in determining when a company has created nexus in Indiana, especially if the presence in Indiana is solely due to an employee having to work from home during the COVID-19 pandemic.

DOR Commissioner Bob Grennes stated, “Our team has been aggressively looking for ways to implement flexibility across all service functions while preserving revenue collection operations, which are vital to funding state services provided to Hoosiers – all with the goal of helping our fellow Hoosiers.”

For a comprehensive listing of relief options, view the DOR’s “Helping Hoosiers” announcement.

Use Tax Waiver on Donated COVID-19 Supplies

In addition to the DOR’s efforts above, per Gov. Eric Holcomb’s Executive Order 20-02, Indiana is waiving use tax on donated COVID-19 supplies. Manufacturers, groups, or organizations donating medicine, medical supplies or other eligible items used to fight the COVID-19 pandemic, including the following, will not incur use tax obligations on their donated items:

• Personal protective equipment, ventilators, and dialysis machines
• Food donated to food banks or other charities helping feed those in need because of the COVID-19 crisis
• Clothing, bedding or personal care products donated to homeless shelters or other charities helping those displaced or in jeopardy because of the COVID-19 crisis
• Soaps, sanitizers, disinfectants, detergents, and other cleaning supplies to medical facilities and the charities mentioned above
• Building supplies, beds, and other materials used to construct and furnish field hospitals or other temporary medical facilities

The items donated must be used for furtherance of fighting the COVID-19 pandemic. The entity receiving the donated item must be directly involved in fighting the COVID-19 pandemic. See the DOR’s agency announcement for more information on qualifying items and how to get approval from the DOR and apply for a use tax waiver.

If you have questions, comments, or concerns about any of these programs, please reach out to your KSM advisor or complete this form.

Visit the KSM COVID-19 Resource Center