§ 6-8.1-10-12 — Additional penalty; failure to participate in amnesty program

Indiana § 6-8.1-10-12

• Jurisdiction: Indiana
• Art. 8.1: DEPARTMENT OF STATE REVENUE; TAX
• Ch. 10: Penalties and Interest

Text

(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(e), for a tax period ending before January 1, 2023;
(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 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
(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 3.5 of this chapter;
(5) section 4 of this chapter;
(6) section 5 of this chapter;
(7) section 6 of this chapter;
(8) section 7 of this chapter;
(9) section 9 of this chapter; or
(10) 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 (10).
(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)(10).
(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
May 15, 2025; 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.

Legislative History

As added by P.L.236-2005, SEC.3. Amended by P.L.1-2009, SEC.59; P.L.213-2015, SEC.94; P.L.1-2025, SEC.106; P.L.213-2025, SEC.95.