Citations Affected: IC 6-8.1-10-2.1.
Synopsis: Penalties for failure to pay state taxes. Provides that a
penalty for failure to pay tax by the due date is reduced to 5% of the
amount of tax due if the person pays the full amount of the tax owed
not more than 30 days after the due date. (Current law provides for a
10% penalty on the amount of tax owed if the payment is made any
time after the due date.)
Effective: July 1, 2008.
January 8, 2008, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
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.