Fourth Quarter Tax Calendar

1 10 2018
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October 15 — Personal federal income tax returns that received an automatic six-month extension must be filed today and any tax, interest and penalties due must be paid.

  • The Financial Crimes Enforcement Network (FinCEN) Report 114, “Report of Foreign Bank and Financial Accounts” (FBAR), must be filed by today, if not filed already, for offshore bank account reporting. (This report received an automatic extension to today if not filed by the original due date of April 17.)
  • If a six-month extension was obtained, calendar-year C corporations should file their 2017 Form 1120 by this date.
  • If the monthly deposit rule applies, employers must deposit the tax for payments in September for Social Security, Medicare, withheld income tax and nonpayroll withholding.

October 31 — The third quarter Form 941 (“Employer’s Quarterly Federal Tax Return”) is due today and any undeposited tax must be deposited. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until November 13 to file the return.

  • If you have employees, a federal unemployment tax (FUTA) deposit is due if the FUTA liability through September exceeds $500.

November 15 — If the monthly deposit rule applies, employers must deposit the tax for payments in October for Social Security, Medicare, withheld income tax, and nonpayroll withholding.

December 17 — Calendar-year corporations must deposit the fourth installment of estimated income tax for 2018.

  • If the monthly deposit rule applies, employers must deposit the tax for payments in November for Social Security, Medicare, withheld income tax, and nonpayroll withholding.




Sales Tax and Remote Sellers

1 10 2018
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The U.S. Supreme Court’s June 21, 2018, ruling in Wayfair concluded that states can impose sales tax-collecting requirements on out-of-state retailers, even those that do NOT have a physical presence in the state.  The court addressed South Dakota’s direct challenge to Quill, the 1992 decision that established the physical presence test for sales and use tax nexus.  That decision predated the surge of online sales, and since then states have been looking to find constitutional ways to collect tax revenue from remote sellers.

It should be noted that physical presence nexus has not gone away.  It still applies regardless of any new thresholds.  What has changed is that physical presence is no longer required for the collection of sales tax as long as certain thresholds are met.

Indiana’s existing “economic nexus” law, effective July 1, 2017, is found at IC 6-2.5-2-1(c), and provides that a retail merchant that does not have a physical presence in Indiana shall collect the gross retail tax on a retail transaction made in Indiana if certain threshold requirements are met.  Because of the ruling in Wayfair, the Indiana Department of Revenue will begin enforcing Indiana’s nexus law on October 1, 2018 on a prospective basis.

Indiana law requires a seller without a physical presence in Indiana to obtain a registered retail merchant’s certificate and to collect and remit applicable sales tax if it meets either or both of the following conditions in the previous calendar year or the current calendar year:

  • Gross revenue from sales into Indiana exceeds $100,000 or
  • There are 200 or more separate transactions into Indiana (probably measured by invoices).

Indiana remote sellers may also be responsible for sales tax collection in other states as well, even though they may have no physical presence in that state. Each state could have different thresholds as well which would need to be researched if this applies to you.

Remote sellers seeking to comply with the laws of multiple states (including Indiana) should register with the Streamlined Sales Tax Registration system.  Remote sellers seeking to comply with only Indiana’s economic nexus law should register through the online portal, INBiz.

The Indiana Department of Revenue will continue to be a resource for both out-of-state and in-state merchants.  In addition, the department will continue to provide further updates online.  Interested parties may subscribe to receive email updates as more information is provided on the website.

You can also call us at 812-663-7567 or 800-676-7567 for assistance.