Businesses: File Annual Withholding Forms to Avoid Penalty

INDIANAPOLIS – The Indiana Department of Revenue (DOR) is instituting a one-time grace period for all businesses required to file an Annual Withholding Reconciliation (WH-3) form for withholding tax.

 All employers were statutorily required to file the WH-3 form by January 31, 2018 for the 2017 tax year. However, the one-time grace period extends the deadline to April 30, 2018, to encourage all businesses to be in compliance.

Every business identified by DOR’s records who has not submitted a WH-3 this year, will receive a letter with instructions on how to file a WH-3. All W-2 forms must accompany the annual WH-3 form.

Businesses are encouraged to file electronically through Indiana’s INtax system at www.intax.in.gov. Any business who files more than 25 W-2, W-2G or 1099-R statements must file them electronically.

 “Accurate monthly WH-1 and annual WH-3 filings are critical to processing and reconciling withholding taxes for employees, employers and government entities” said DOR Commissioner Adam Krupp.

 Businesses who don’t file before the grace period deadline of April 30, 2018 are subject to statutorily allowed penalties up to $25,000.

 More information on filing WH-3 forms can be found on DOR’s website at www.in.gov/dor/4455.htm or in Departmental Notice #5 at www.in.gov/dor/reference/files/dn05.pdf. For additional questions or concerns about a business withholding account, customers may contact DOR’s Customer Service Department at 317-233-4016 Monday through Friday, 8:00 a.m. – 4:30 p.m., EST.