The Indiana Department of Revenue (DOR) now has the ability to audit small business owners suspected of claiming fraudulent business expenses, thanks to a collaborative partnership with the Internal Revenue Service (IRS). Businesses with an individual owner, known as sole proprietorships, may be required to fill out a 1040 Schedule C tax form as part of their federal income taxes. The Schedule C form lists all income, expenses, costs of goods sold and vehicle information, as a step to determine their federal gross income. The federal gross income is then reported to DOR when filing state individual income tax forms. In a joint effort to combat fraudulent business expenses, the IRS is sharing filed information with DOR to evaluate any suspicious information and irregularities—a new development for the 2018 tax season. If customers have any questions regarding Schedule C tax filings, they are encouraged to call DOR’s Customer Support at 317-232-2240, Monday through Friday from 8:00 a.m. – 4:30 p.m. EST.
January 22nd, 2018|Local News|