Saturday, February 27, 2016 Proposal Conference Information Session Thursday, September 24, 2009 Indiana Department of Revenue

Saturday, February 27, 2016 RESPONSES/QUESTIONS/ANSWERS  Firms interested in providing information to DOR will be provided an opportunity to direct questions for clarification, discuss project scope limits and seek information to deliver a proposed solution.  Any questions regarding this RFP process will be addressed by IDOA

Saturday, February 27, 2016 Agenda I.Introductions II.IDOA RFP Process / MBE/WBE Requirements III.Discussion of RFP: Background Expectations of Potential Respondents Objective Specific Needs IV.Questions & Answers

Saturday, February 27, 2016 Introductions Roy D. Gabriel – DOR IT Jeff Coulter – DOR Enforcement Division Darrel Anderson - DOR Enforcement Division Laura Rakaska – DOR Enforcement Division Mandi Shawarira - DOR Enforcement Jo Anne Jones – DOR Finance Division James Osborne – IDOA Procurement Division Charles Hill – IDOA MBE/WBE Representative

Saturday, February 27, 2016 RFP Expectations/Process  The RFP process will be open to all.  DOR seeks creative, high-level responses to the RFP components. DOR is especially interested in receiving the following information from each respondent’s RFP submission:  Industry partner with the qualifications and related experience necessary to address the objectives and needs.  Contractors willing to meet contractual requirements for the RFP.  Industry partners that can demonstrate corporate/financial stability and industry presence.  Insight into comparable projects of similar scope and size.

Saturday, February 27, 2016 PROPOSED TIMELINE Specialized Audit Selection and Discovery Procedure Development RFP

Saturday, February 27, 2016 Purpose of this RFP  The purpose of this RFP is to select one or more vendors that can satisfy the State’s need for specialized services for audit selection and discovery related to the under reporting of taxes owed the State of Indiana by taxpayers located throughout the United States.  A key area of concentration will be transfer pricing  “Transfer Prices’ are intercompany prices charged for products and services transferred from one related company to another related company.  Indiana follows the guidelines and principles of the Internal Revenue Code: Section 482  Allocation of income and deductions among taxpayers

Saturday, February 27, 2016 Purpose of IRC Section 482  The purpose of IRC section 482 is to ensure taxpayers clearly reflect income attributable to controlled transactions and to prevent avoidance of taxes regarding such transactions.  Basically, ensure taxpayers clearly reflect income controlled transactions  IRC section 482 places a controlled taxpayer on a tax parity with an uncontrolled taxpayer by determining true taxable income.  Prevent avoidance of taxes  Transactions between one controlled taxpayer and another will be subject to special scrutiny to ascertain whether common control is being used to reduce, avoid, or escape taxes.

Saturday, February 27, 2016 Purpose of IRC Section 482  In determining the true taxable income of a controlled taxpayer  The service is not restricted to the case of improper accounting  The case of a fraudulent or sham transaction  The case of a device designed to reduce or avoid tax by shifting or distorting income, deductions, credits, or allowances.  The authority to determine true taxable income extends to any case in which either by inadvertence or design the taxable income of a controlled taxpayer is other than it would have been had the taxpayer, in the conduct of his affairs, been dealing at arm's length with an uncontrolled taxpayer.

Saturday, February 27, 2016 IRC Section 482 Issue Targets

Saturday, February 27, 2016 Question & Answer Session