DOR reviews Federal Schedule C for sole proprietorship income and loss. Contractors and non-employee compensation go on this form, too.
Schedule C is part of their Indiana tax returns and include things like form 1099-NEC and ride share and small business income. Businesses must keep records to show all income and expenses reported on Schedule C.
DOR may send you a letter requesting proof of paid invoices, receipts, bank statements, and cancelled checks to validate your return. You will need to complete the income and expense: part one, line 1 is income; part two, lines 8-27 are expenses.
Send requested documentation on INTIME. Further adjustments to your Schedule C may cause processing delays. Your return will not be processed until documentation is submitted or until the due date provided on your letter.
Find examples of acceptable documents from the IRS. DOR does not accept spreadsheets or QuickBooks as sole proof of income or expenses.