The Indiana Economic Development Corporation recently released statistics related to the state's economic development efforts. These efforts have been recognized by numerous publications, which have ranked Indiana as the top state in the Midwestern region, and in the top 11 nationally for its excellent business environment.

 

Indiana is making large strides in improving the state economy, and private sector employment is now at pre-recession levels not seen since 2008 (May 2013: 2,516,600; July 2008: 2,513,300). Indiana continues to have the highest percentage of manufacturing jobs as a portion of the private sector in the United States.

 

Indiana's private sector job growth in May was the 8th largest in the nation (9,000), ranks 5th in the nation in percentage of growth since the low point of employment in July 2009 (8.2% compared to 5.6% national average), and 8th in the nation in total private sector growth since July 2009 (191,000). Indiana has added nearly 60,000 manufacturing jobs, which is 2nd in the nation with 13.9% (the 3rd highest growth rate in the nation).

 

Indiana enacted the largest tax cuts in state history, more than $600 million a year. Indiana is set to become the only state in the country to enact more than $1 billion in tax cuts over the next two years through a combination of income tax relief, a repeal of the inheritance tax, and other business tax reductions.

 

Please contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com for more information. 

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Sales and use tax law and application can be very challenging and stressful. This is especially true if your company does business in more than one state. Sales tax is imposed on the retail sale of tangible personal property or services within the taxing jurisdiction. Use tax is imposed on the possession, use, storage, or consumption of tangible personal property or services within the taxing jurisdiction.

 

Here are 5 highly valuable questions to think about before the state auditor starts knocking on the door:

1. How do you determine the proper amount of sales tax to be charged on invoices to in-state and out-of-state customers?
2. Are sales or use taxes being paid on purchases from vendors including internet purchases that are consumed in the business? What is your process for capturing those invoices that require use tax to be paid?
3. Based on your industry, do you feel that all sales and use tax exemptions are being utilized?
4. Have you analyzed whether you should be collecting sales tax for states other than your home state?
5. What is your process for collecting and retaining exemption certificates that you receive from your customers?

Please contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com or John Rittichier, CPA at 800-880-7800 ext. 8484 or jrittichier@hsccpa.com for more information.

 

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The Trust Fund Recovery Penalty (TFRP) is enforced by the Internal Revenues Service (IRS) and is assessed against a responsible person associated with a business or organization who willfully disregards submitting employee payroll withholdings. The IRS will evaluate two factors, responsible person and willfulness, before taking civil action. Those actions can include seizure of personal assets or filing of a federal tax lien.

 

The TFRP has a broad definition of responsible person. A few examples are an officer or an employee of a corporation, a member or employee of a partnership, or a member of a board of trustees of a nonprofit organization. Also, the responsible person can be found to be willful, if they intentionally disregard the law or are indifferent to the law by paying other creditors first. 

 

Please contact Micah Prellwitz at 800.880.7800 ext. 1395 or mprellwitz@hsccpa.com for more information.

 

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