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IC 6-8.1-10-1
Liability for interest
Sec. 1. (a) If a person fails to file a return for any of the listed
taxes, fails to pay the full amount of tax shown on the person's return
by the due date for the return or the payment, or incurs a deficiency
upon a determination by the department, the person is subject to
interest on the nonpayment.
(b) The interest for a failure described in subsection (a) is the
adjusted rate established by the commissioner under subsection (c),
from the due date for payment. The interest applies to:
(1) the full amount of the unpaid tax due if the person failed to
file the return;
(2) the amount of the tax that is not paid, if the person filed the
return but failed to pay the full amount of tax shown on the
return; or
(3) the amount of the deficiency.
(c) The commissioner shall establish an adjusted rate of interest
for a failure described in subsection (a) and for an excess tax
payment on or before November 1 of each year. For purposes of
subsection (b), the adjusted rate of interest shall be the percentage
rounded to the nearest whole number that equals two (2) percentage
points above the average investment yield on state money for the
state's previous fiscal year, excluding pension fund investments, as
determined by the treasurer of state on or before October 1 of each
year and reported to the commissioner. For purposes of
IC 6-8.1-9-2(c), the adjusted rate of interest for an excess tax
payment must be the same as the adjusted rate of interest determined
under this subsection for a failure described in subsection (a). The
adjusted rates of interest established under this subsection shall take
effect on January 1 of the immediately succeeding year.
(d) For purposes of this section, the filing of a substantially blank
or unsigned return does not constitute a return.
(e) Except as provided by IC 6-8.1-3-17(c) and IC 6-8.1-5-2, the
department may not waive the interest imposed under this section.
(f) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.60-1990,
SEC.13; P.L.48-1994, SEC.3; P.L.2-1995, SEC.36; P.L.2-2005,
SEC.23; P.L.236-2005, SEC.2; P.L.1-2006, SEC.147; P.L.211-2007,
SEC.43.
IC 6-8.1-10-2
Repealed
(Repealed by P.L.1-1991, SEC.69.)
IC 6-8.1-10-2.1 Version a
Liability for penalty
Note: This version of section effective until 1-1-2008. See also
following version of this section, effective 1-1-2008.
Sec. 2.1. (a) If a person:
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's
return on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency
that is due to negligence;
(4) fails to timely remit any tax held in trust for the state; or
(5) is required to make a payment by electronic funds transfer
(as defined in IC 4-8.1-2-7), overnight courier, or personal
delivery and the payment is not received by the department by
the due date in funds acceptable to the department;
the person is subject to a penalty.
(b) Except as provided in subsection (g), the penalty described in
subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the
return;
(2) the amount of the tax not paid, if the person filed the return
but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely
remitted;
(4) the amount of deficiency as finally determined by the
department; or
(5) the amount of tax due if a person failed to make payment by
electronic funds transfer, overnight courier, or personal delivery
by the due date.
(c) For purposes of this section, the filing of a substantially blank
or unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section
can show that the failure to file a return, pay the full amount of tax
shown on the person's return, timely remit tax held in trust, or pay the
deficiency determined by the department was due to reasonable
cause and not due to willful neglect, the department shall waive the
penalty.
(e) A person who wishes to avoid the penalty imposed under this
section must make an affirmative showing of all facts alleged as a
reasonable cause for the person's failure to file the return, pay the
amount of tax shown on the person's return, pay the deficiency, or
timely remit tax held in trust, in a written statement containing a
declaration that the statement is made under penalty of perjury. The
statement must be filed with the return or payment within the time
prescribed for protesting departmental assessments. A taxpayer may
also avoid the penalty imposed under this section by obtaining a
ruling from the department before the end of a particular tax period
on the amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe
the circumstances that constitute reasonable cause and negligence for
purposes of this section.
(g) A person who fails to file a return for a listed tax that shows
no tax liability for a taxable year, other than an information return (as
defined in section 6 of this chapter), on or before the due date of the
return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
($250).
(h) A corporation which otherwise qualifies under IC 6-3-2-2.8(2)
but fails to withhold and pay any amount of tax required to be
withheld under IC 6-3-4-13 shall pay a penalty equal to twenty
percent (20%) of the amount of tax required to be withheld under
IC 6-3-4-13. This penalty shall be in addition to any penalty imposed
by section 6 of this chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
As added by P.L.1-1991, SEC.70. Amended by P.L.71-1993, SEC.26;
P.L.18-1994, SEC.43.
IC 6-8.1-10-2.1 Version b
Liability for penalty
Note: This version of section effective 1-1-2008. See also
preceding version of this section, effective until 1-1-2008.
Sec. 2.1. (a) If a person:
(1) fails to file a return for any of the listed taxes;
(2) fails to pay the full amount of tax shown on the person's
return on or before the due date for the return or payment;
(3) incurs, upon examination by the department, a deficiency
that is due to negligence;
(4) fails to timely remit any tax held in trust for the state; or
(5) is required to make a payment by electronic funds transfer
(as defined in IC 4-8.1-2-7), overnight courier, or personal
delivery and the payment is not received by the department by
the due date in funds acceptable to the department;
the person is subject to a penalty.
(b) Except as provided in subsection (g), the penalty described in
subsection (a) is ten percent (10%) of:
(1) the full amount of the tax due if the person failed to file the
return;
(2) the amount of the tax not paid, if the person filed the return
but failed to pay the full amount of the tax shown on the return;
(3) the amount of the tax held in trust that is not timely
remitted;
(4) the amount of deficiency as finally determined by the
department; or
(5) the amount of tax due if a person failed to make payment by
electronic funds transfer, overnight courier, or personal delivery
by the due date.
(c) For purposes of this section, the filing of a substantially blank
or unsigned return does not constitute a return.
(d) If a person subject to the penalty imposed under this section
can show that the failure to file a return, pay the full amount of tax
shown on the person's return, timely remit tax held in trust, or pay the
deficiency determined by the department was due to reasonable
cause and not due to willful neglect, the department shall waive the
penalty.
(e) A person who wishes to avoid the penalty imposed under this
section must make an affirmative showing of all facts alleged as a
reasonable cause for the person's failure to file the return, pay the
amount of tax shown on the person's return, pay the deficiency, or
timely remit tax held in trust, in a written statement containing a
declaration that the statement is made under penalty of perjury. The
statement must be filed with the return or payment within the time
prescribed for protesting departmental assessments. A taxpayer may
also avoid the penalty imposed under this section by obtaining a
ruling from the department before the end of a particular tax period
on the amount of tax due for that tax period.
(f) The department shall adopt rules under IC 4-22-2 to prescribe
the circumstances that constitute reasonable cause and negligence for
purposes of this section.
(g) A person who fails to file a return for a listed tax that shows
no tax liability for a taxable year, other than an information return (as
defined in section 6 of this chapter), on or before the due date of the
return shall pay a penalty of ten dollars ($10) for each day that the
return is past due, up to a maximum of two hundred fifty dollars
($250).
(h) A corporation which otherwise qualifies under IC 6-3-2-2.8(2)
but fails to withhold and pay any amount of tax required to be
withheld under IC 6-3-4-13 shall pay a penalty equal to twenty
percent (20%) of the amount of tax required to be withheld under
IC 6-3-4-13. This penalty shall be in addition to any penalty imposed
by section 6 of this chapter.
(i) Subsections (a) through (c) do not apply to a motor carrier fuel
tax return.
(j) If a partnership or an S corporation fails to include all
nonresidential individual partners or nonresidential individual
shareholders in a composite return as required by IC 6-3-4-12(h) or
IC 6-3-4-13(j), a penalty of five hundred dollars ($500) per
partnership or S corporation is imposed on the partnership or S
corporation.
As added by P.L.1-1991, SEC.70. Amended by P.L.71-1993, SEC.26;
P.L.18-1994, SEC.43; P.L.211-2007, SEC.44.
IC 6-8.1-10-3
Failure to file return; preparation by department; penalty
Sec. 3. (a) If a person fails to file a return on or before the due
date, the department shall send him a notice, by United States mail,
stating that he has thirty (30) days from the date the notice is mailed
to file the return. If the person does not file the return within the
thirty (30) day period, the department may prepare a return for him,
based on the best information available to the department. The
department prepared return is prima facie correct.
(b) If the department prepares a person's return under this section,
the person is subject to a penalty of twenty percent (20%) of the
unpaid tax. In the absence of fraud, the penalty imposed under this
section is in place of and not in addition to the penalties imposed
under any other section.
As added by Acts 1980, P.L.61, SEC.1.
IC 6-8.1-10-4
Failure to file return; fraudulent intent to evade tax; penalty
Sec. 4. (a) If a person fails to file a return or to make a full tax
payment with that return with the fraudulent intent of evading the
tax, the person is subject to a penalty.
(b) The amount of the penalty imposed for a fraudulent failure
described in subsection (a) is one hundred percent (100%) multiplied
by:
(1) the full amount of the tax, if the person failed to file a
return; or
(2) the amount of the tax that is not paid, if the person failed to
pay the full amount of the tax.
(c) In addition to the civil penalty imposed under this section, a
person who knowingly fails to file a return with the department or
fails to pay the tax due under IC 6-6-5 or IC 6-6-5.5 commits a Class
A misdemeanor.
(d) The penalty imposed under this section is imposed in place of
and not in addition to the penalty imposed under section 2.1 of this
chapter.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.26-1985,
SEC.16; P.L.6-1987, SEC.14; P.L.335-1989(ss), SEC.24;
P.L.1-1991, SEC.71; P.L.181-1999, SEC.8.
IC 6-8.1-10-5
Bad checks; penalty
Sec. 5. (a) If a person makes a tax payment with a check and the
department is unable to obtain payment on the check for its full face
amount when the check is presented for payment through normal
banking channels, a penalty of ten percent (10%) of the unpaid tax
or the face value of the check, whichever is smaller, is imposed.
(b) When a penalty is imposed under subsection (a), the
department shall notify the person by mail that the check was not
honored and that the person has ten (10) days after the date the notice
is mailed to pay the tax and the penalty either in cash, by certified
check, or other guaranteed payment. If the person fails to make the
payment within the ten (10) day period, the penalty is increased to
one hundred percent (100%) multiplied by the face value of the
check or the unpaid tax, whichever is smaller.
(c) If the person subject to the penalty under this section can show
that there is reasonable cause for the check not being honored, the
department may waive the penalty imposed under this section.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.26-1985,
SEC.17; P.L.18-1994, SEC.44.
IC 6-8.1-10-7
Maximum and minimum penalties
Sec. 7. Notwithstanding the various penalty provisions of this
chapter, the maximum total penalty that may be assessed against a
person under sections 2.1 through 5 of this chapter is one hundred
percent (100%) of the unpaid tax and the minimum penalty, if any,
that may be assessed under those sections is five dollars ($5).
As added by Acts 1980, P.L.61, SEC.1. Amended by
P.L.383-1987(ss), SEC.2; P.L.1-1991, SEC.72; P.L.71-1993,
SEC.27.
IC 6-8.1-10-8
Repealed
(Repealed by P.L.107-1987, SEC.50.)
IC 6-8.1-10-9
Dissolution, liquidation, or withdrawal of corporation; notification;
clearance
Sec. 9. (a) As used in this section:
(1) "Dissolution" refers to dissolution of a corporation under
IC 23-1-45 through IC 23-1-48, IC 23-17-23, or IC 23-17-24.
(2) "Liquidation" means the operation or act of winding up a
corporation's affairs, when normal business activities have
ceased, by settling its debts and realizing upon and distributing
its assets.
period prescribed by subsection (c), the personal liability of the
corporate officer or director expires. The filing of a substantially
blank form of notification or a form containing misrepresentation of
material facts does not constitute filing a form of notification for the
purpose of determining the period of personal liability of the officers
and directors of the corporation.
(f) In addition to the remedies contained in this section, the
department or county treasurer is entitled to pursue corporate assets
that have been distributed to shareholders in violation of the interests
of the state or political subdivision. The election to pursue one (1)
remedy does not foreclose the state's or the county's option to pursue
other legal remedies.
(g) The department may issue a clearance to a corporation
effecting dissolution, liquidation, or withdrawal if:
(1) the officers and directors of the corporation have met the
requirements of subsections (b) through (c); and
(2) request for the clearance is made in writing by the officers
and directors of the corporation within thirty (30) days after the
filing of the form of notification with the department.
(h) The issuance of a clearance by the department under
subsection (g) releases the officers and directors from personal
liability under this section.
(i) This section does not limit the liability of a responsible
corporate officer for withheld income taxes or collected gross retail
taxes.
As added by P.L.107-1987, SEC.1. Amended by P.L.73-1988, SEC.1;
P.L.179-1991, SEC.11.
IC 6-8.1-10-10
Reserved
IC 6-8.1-10-11
IC 6-8.1-10-12
taxes in full in the manner and time established in a written
payment program agreement entered into between the
department and the taxpayer under IC 6-8.1-3-17(c); or
Repealed
(Repealed by P.L.254-2003, SEC.14.)
Additional penalty; failure to participate in amnesty program
Sec. 12. (a) This section applies to a penalty related to a tax
liability to the extent that the:
(1) tax liability is for a listed tax;
(2) tax liability was due and payable, as determined under
IC 6-8.1-3-17(d), for a tax period ending before July 1, 2004;
(3) department establishes an amnesty program for the tax
liability under IC 6-8.1-3-17(c);
(4) individual or entity from which the tax liability is due was
eligible to participate in the amnesty program described in
subdivision (3); and
(5) tax liability is not paid:
(A) in conformity with a payment program acceptable to the
department that provides for payment of the unpaid listed
(B) if clause (A) does not apply, before the end of the
amnesty period established by the department.
(b) Subject to subsection (c), if a penalty is imposed or otherwise
calculated under any combination of:
(1) IC 6-8.1-1-8;
(2) section 2.1 of this chapter;
(3) section 3 of this chapter;
(4) section 4 of this chapter;
(5) section 5 of this chapter;
(6) section 6 of this chapter;
(7) section 7 of this chapter;
(8) section 9 of this chapter; or
(9) IC 6-6;
an additional penalty is imposed under this section. The amount of
the additional penalty imposed under this section is equal to the sum
of the penalties imposed or otherwise calculated under the provisions
listed in subdivisions (1) through (9).
(c) The additional penalty provided by subsection (b) does not
apply if all of the following apply:
(1) The department imposes a penalty on a taxpayer or
otherwise calculates the penalty under the provisions described
in subsection (b)(1) through (b)(9).
(2) The taxpayer against whom the penalty is imposed:
(A) timely files an original tax appeal in the tax court under
IC 6-8.1-5-1; and
(B) contests the department's imposition of the penalty or the
tax on which the penalty is based.
(3) The taxpayer meets all other jurisdictional requirements to
initiate the original tax appeal.
(4) Either the:
(A) tax court enjoins collection of the penalty or the tax on
which the penalty is based under IC 33-26-6-2; or
(B) department consents to an injunction against collection
of the penalty or tax without entry of an order by the tax
court.
(d) The additional penalty provided by subsection (b) does not
apply if the taxpayer:
(1) has a legitimate hold on making the payment as a result of
an audit, bankruptcy, protest, taxpayer advocate action, or
another reason permitted by the department;
(2) had established a payment plan with the department before
the effective date of this section; or
(3) verifies with reasonable particularity that is satisfactory to
the commissioner that the taxpayer did not ever receive notice
of the outstanding tax liability.
As added by P.L.236-2005, SEC.3.
IC 6-8.1-10-13
Civil penalties for violations
Sec. 13. (a) A person that:
(1) obtains a permit, license plate, cab card, or any other
credential issued by the registration center established under
IC 6-8.1-4-4; and
(2) alters the permit, license plate, cab card, or other credential;
is subject to a civil penalty of five hundred dollars ($500) for the first
violation and one thousand dollars ($1,000) for each subsequent
violation.
(b) A person that:
(1) is required to obtain a permit, a license plate, a cab card, or
other credential issued by the registration center established
under IC 6-8.1-4-4; and
(2) operates without obtaining the required permit, license plate,
cab card, or other credential;
is subject to a civil penalty of five thousand dollars ($5,000) for each
violation.
(c) A civil penalty imposed under this section:
(1) shall be deposited in the motor carrier regulation fund
established by IC 8-2.1-23-1; and
(2) is in addition to any fines levied by a court.
As added by P.L.176-2006, SEC.7.
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