Indiana Department of Revenue Assesses Additional Income Tax on Gambling Couple

An Indiana married couple was recently assessed additional tax when the Indiana Department of Revenue determined that they did not qualify as professional gamblers. The State’s assessment is a result of a Federal adjustment. Professional gamblers report their winnings, losses, and expenses on Schedule C, which typically results in a lower income tax liability. The IRS’s denial of the taxpayer’s protest of their categorization as casual gamblers was adopted by the State without further analysis.

For more information on this and other income taxation rules, contact your state and local tax professional.

Stagnant Sales Tax, and States With the Highest Sales Tax

The number of changes states have made to sales tax has decreased for the fourth year in a row according to Vetex’s 2012 Sales Tax Report. Average state sales tax stayed at 5.488% from 2011 to 2012. States with the highest sales tax of 7% are Indiana, Mississippi, New Jersey, Rhode Island, and Tennessee.

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http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2013/CorpTax/SalesTaxRates.jsp