Last Updated on October 11, 2018 by cassnetwork
INDIANAPOLIS — The Indiana Department of Revenue (DOR) has recently enhanced steps to identify and confront businesses engaged in illegal activity by using illegal sales transaction manipulation devices or computer programs, often called tax zappers.
Tax zappers delete or modify sales transactions with the intention of avoiding paying income, sales and/or food and beverage tax. Businesses are often approached by unscrupulous marketers of these devices with the false promise of this illegal practice going unnoticed. DOR is ensuring it’s not.
DOR has established a team of forensic fraud analysts, tax auditors, tax attorneys and investigators to research and adopt best practices to stop this illegal activity. This team is partnering with sister states, the Internal Revenue Services and industry-leading fraud detection companies to refine DOR’s detection, audit and verification processes.
Indiana legislation allows DOR to fine individuals that use tax zapper software (IC 35-43-5-4.6). DOR also works collaboratively with prosecutors and law enforcement throughout the state to investigate and prosecute individuals committing this form of tax fraud.
“Indiana has made significant investments in tax and refund fraud detection and is nationally recognized as a leader in this important field,” said DOR Commissioner Adam Krupp. “Businesses illegally using sales transaction manipulation software is another form of tax fraud that is an important part of our detection, prevention and enforcement programs.”
DOR is committed to educating Hoosiers about identity theft and tax fraud. To learn more about DOR’s fraud detection and prevention programs, visit DOR’s website.
A business that may be using zapper devices or software or committing any type of tax fraud, can be easily and anonymously reported online through the tax fraud information referral or by calling the 24-hour Indiana Tax Fraud Hotline at (317) 232-2271.
SOURCE: News release from Indiana Department of Revenue