Frequently Asked Questions - Tax Practitioners

W-2 and WH-3 Electronic Filing

Can files contain more than one employer record (RE)?

Yes, through providers uploading into INtax can upload files containing all the clients registered to them. Service providers can use the batch upload function.

To upload can upload files containing all the clients for which a Federal Form 2848 is on file. Clients do not have to be registered in INtax.

Can I upload W-2s for clients if they have outstanding liabilities?

Yes. You can upload or manually enter W-2s even if your client has an outstanding balance with the Department.

I keep getting an error message stating a valid file has not been uploaded. Why?

Verify if the "Upload" button was clicked. Clicking "Browse" and then clicking the "Next" button triggers this error. The correct order is "Browse," "Upload" and then "Next."

How do I file W-2s for my clients?

The “File a Return” menu option does not become available until after you choose the tax type of “Withholding.” After you select “Withholding” under “Account,” select “File a Return” from the menu on the left. An option will be available for “Filing a WH-1” or a “Filing a WH-3.” Select WH-3. Verify the return period and click “Next.” You will then have the option of uploading W-2s or manually entering the W-2 data.

I am getting an error stating that my employer ID for the uploaded file does not match the currently selected account. Why?

This error is triggered when the Taxpayer ID number is missing on the RS record or is different from the account on the screen. For each RS record, position 331 must have the taxpayer’s 10-digit TID number and then the 3-digit location number. Not having this ID number in this location triggers the error.

Is there a document that explains in which format my W-2 file should be for uploading?

Yes, the W-2 and WH-3 Requirement Booklet contains this information. This file explains the file layout requirements. There is additional information on our electronic media page.

Have there been any recent changes to the technical specifications for the W-2 file format?

Yes, there have been significant changes to the file layout of the Social Security Administration's W-2 file specifications (Publication No. 42-007). Those changes will also be reflected in the Indiana Department of Revenue W-2 specifications booklet for the 2010 tax year.

The Indiana Department of Revenue will accept W-2 files uploaded using either new 2010 file layout or the previous version of the file layout.

Is there a size limit for uploading my files?

Yes. Files over 2MB, or approximately 2,000 W-2s, can not be uploaded into INtax. You can register to use the batch upload option or break the file into smaller files and upload multiple files.

Do you send files so taxpayers can enter information and upload the file?

No. We do not provide files for taxpayers.

File specifications

What if I am getting a message saying that the TID does not match? I have already looked at my file, and the TIDs are the same.

Verify that the TID and LOC are for the account selected. The TID and LOC will be displayed in the top portion of the upload screen.

Can I use an XML or EFW2 file format?

INtax does not currently allow for an XML file format. We do follow the guidelines established by the Social Security Administration for filing W-2 information using the EFW2 format. Only RS and RV records are unique to Indiana. Both EFW2 and XML files can be uploaded using the batch upload process.

After I have uploaded my file, do I need to send in my paper W-2s?

No. If you upload your W-2 information in INtax, you should not submit paper W-2s to the Department. This is also true for files uploaded through the batch upload process.

I'm a service provider, and my clients are registered in INtax. Why am I getting an error when trying to upload their WH-3s stating, “You don't have permission”?

For a service provider to upload a file for a client, the service provider must have added the taxpayer as a client. The service provider also must have permission to file returns on behalf of the client.

After I have uploaded my W-2 file in INtax or batch upload, do I need to send in my paper WH-3?

No. If you upload your W-2 information in INtax, you should not submit paper W-2s or WH-3s to the Department. This is also true for files uploaded through the batch upload process.

Can I request an extension of time to file?

Yes, an extension of time to file may be requested if you do not have distribution amounts that apply to WH-18s by the due date.

The Department will accept a copy of the federal extension to submit Form WH-3. Also, if the withholding account is designated as a separate account for nonresident withholding and making an annual one time distribution by pass through entities to shareholders, partners, or beneficiaries, the WH-3 filing due date is the fifteenth day of the third month following the year end date.

Power of Attorney

Can I submit the POA-1 form for my client?

Yes, Power of Attorney (POA) representatives may submit the POA-1 form for their clients. The POA representative should verify that all information has been properly completed and signed.

If I complete the POA-1 form, will I begin receiving copies of all letters mailed from the Department to my client?

No, the POA-1 form does not authorize the POA representative to receive the same correspondence sent from the Department to the taxpayer. Completing a POA-1 form only allows the Department to speak with the taxpayer’s POA representative.

I’ve entered my company name on the POA-1 form. Can the Department talk with anyone who works at my firm?

No, a company cannot be represented on the POA-1 form. By law, the Department can accept only an individual’s name as a POA representative. The Department will not accept a POA-1 form that does not have a designated POA representative from a company.

Can I send the Department the Internal Revenue Service’s POA form as long as it lists the Indiana tax types?

No, the Department will not accept the Internal Revenue Service’s POA form. A POA-1 form must be completed.

When will my client's POA expire with the Department?

POAs expire after five years. Therefore, every five years your client will need to renew the POA.

eFile Mandate

To whom does the eFile mandate apply?

In calendar year 2013 the eFile mandate applies to any professional preparer who filed 50 or more Indiana returns for individuals in the previous tax year. In 2014 the limit is 10. The mandate states the current year tax returns must be filed electronically.

If I am part of a firm, how do I determine if the mandate applies to me?

The mandate will apply to the firm as a whole. Any returns filed from the firm are subject to the mandate. If an individual who is employed by the firm also has a private practice with more than the mandated number of returns, the individual is required to eFile.

What is the penalty for failure to comply with the eFile mandate?

A penalty of $50 per return up to a maximum of $25,000 per calendar year may be imposed.

What if my clients refuse to allow me to file their returns electronically?

Indiana state law requires those practitioners who are affected by the mandate to file their returns electronically. Other states’ practitioners have been successful in such situations by telling their clients up front, before conducting any work for them. Form IN-OPT may be signed by the taxpayer in those rare instances where electronic filing is refused. This form must be retained by the practitioner for three years.

If you have more questions, please call (317) 233-4017.