Recently the Indiana Department of Revenue offered a Tax Amnesty Program in which past-due tax bills can be paid free of penalty, interest or collection fees. It covers about 40 different types of taxes for periods prior to Jan. 1, 2013, including individual and corporate income tax, payroll withholding tax and sales tax.
However, there have been a number of reported cases in which individuals and businesses received letters from the Indiana Department of Revenue incorrectly implying they had underreported their liability. Upon further investigation it was revealed that the INDOR was using a third party to send out these letters, which went to an unapproved group of taxpayers.
The state has since ordered the contractor to stop sending the letters and has apologized to taxpayers. But since approximately 150,000 such letters went out in all — about 3% of all taxpayers — it’s led to much confusion about the veracity of the claims contained in the letters.
A follow-up letter is being mailed by the INDOR contractor soon that is supposed to help clarify the taxpayer’s individual circumstance. We are also more than happy to assist you with determining if any action is required on you or your company’s part. If it turns out you do have an outstanding liability owed to the state, the tax amnesty program represents an opportunity to resolve the issue.
If you haven’t yet filed for tax amnesty, there’s still time: it ends Nov. 16, 2015. Call 1-844-TAXES-IN or go to www.taxamnesty.in.gov to start the process of paying your account during the amnesty period.
Again, if you require any assistance or counsel on this matter, please don’t hesitate to contact us.
Call Jennifer McNett in our Tax Services department at (317) 608-6699 or email [email protected].