Tax Talk

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.

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How to Open and Close a Business

May 16, 2018

Opening a Business

Did you know that Indiana has almost half a million small businesses? When opening a new business in Indiana, it’s important to determine whether you need to register your business with the Indiana Department of Revenue (DOR).

You will need to register your business if you:

  • Will be selling products or tangible items
  • Have employees
  • Sell food and beverages
  • Rent accommodations for less than 30 days
  • Rent motor vehicles
  • Sell tires
  • Sell fireworks
  • Sell prepaid wireless cards

To register your business with DOR, start at INBiz website. INBiz is a cooperative effort among several state agencies to provide a one-stop source for business owners.

DOR understands that business owners are experts in their trade but don’t necessarily have an interest in, or extensive knowledge of, taxes. To help businesses start strong, DOR offers a number of online resources by business type.

Closing a Business

If you close your business, you’ll need to close your business tax accounts with the DOR. To do so, complete a Business Tax Closure Request (BC-100). You must complete a BC-100 for each location to be closed.

To verify the business closure, you must include one or more of the following:

  • Minutes of the final board of directors meeting
  • Records of bank accounts closed
  • Articles of dissolution
  • Notarized statement of dissolution from an officer of the business
  • Final utility bills
  • Proof of dissolution filed with the Internal Revenue Service
  • Books and records
  • Other pertinent information

Business owners who cannot provide the documentation above can submit a notarized BC-100.

Completed forms and documentation should be faxed to 317-232-1021 or mailed to:

Indiana Department of Revenue
Tax Administration Processing
P.O. Box 6197
Indianapolis, IN 46206-6197

If you need assistance opening or closing a business, please contact the DOR at 317-233-4015, Monday through Friday, 8 a.m. – 4:30 p.m. EST.

Paycheck withholding ‘checkup’ have you considered it?

May 9, 2018

The Indiana Department of Revenue (DOR) is encouraging Hoosiers to do a “paycheck checkup” to ensure the right amount of tax is being withheld from your check following the recent tax-law changes.

The new tax law could affect how much tax you should have your employer withhold from your paycheck. Using the Withholding Calculator can help prevent you from having too little or too much tax withheld. Having too little tax withheld could mean an unexpected tax bill or a potential penalty at tax time in 2019.

You can use the Withholding Calculator to estimate your 2018 income tax and compare the estimate to your current tax withholding. This can also help you decide if you need to change your withholding by submitting a new WH-4 form to your employer. When using the calculator, it is helpful to have your completed tax return from the previous year and recent paystubs available.

You should always check your withholding at the beginning of each year or if your personal circumstances change to ensure you are having the right amount of tax withheld from your paycheck.

If you are someone who needs to adjust your withholding you should do so as quickly as possible. This will allow more time for tax withholding to take place evenly during the rest of the year. Waiting until later in the year means there are fewer pay periods to make the tax changes.

For more details on withholding issues, you can visit the IRS tax withholding website.