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October 5, 2015
Did you know Indiana isn’t the only state currently conducting a tax amnesty program?
Arizona, Kansas, Maryland, Missouri, and Oklahoma all launched tax amnesty programs in September. While specific details vary for each program, tax amnesties generally offer taxpayers a limited-time opportunity to catch up on past-due taxes without paying penalty or interest charges.
First, let’s take a look at the basics of Indiana’s Tax Amnesty 2015.
Indiana’s Tax Amnesty 2015
From September 15 through November 16, 2015, Indiana is offering Tax Amnesty 2015, an opportunity for individual and business taxpayers to pay past-due taxes for periods ending prior to January 1, 2013 without penalty, interest, or collection fees. All tax types managed by the Indiana Department of Revenue are included in the program, including individual income tax, corporate income tax, and sales tax. Taxpayers also may be eligible to have tax warrants expunged from their record.
More than $545 million is eligible for collection through Tax Amnesty 2015. Of the past-due taxes collected, the first $84 million will be allocated to the Indiana Economic Development Corporation to fund the Indiana Regional Cities Initiative. Up to the next $6 million will be allocated to the Indiana Department of Transportation to support operation of the Hoosier State Rail Line. Any additional funds collected will be deposited in the state general fund.
Tax Amnesty 2015 is Indiana’s second tax amnesty program. The program is authorized by the biennial budget in House Enrolled Act 1001, signed into law by Governor Mike Pence in May 2015.
Keep reading to see how other states’ amnesty programs compare.
From September 1 through October 31, 2015, Arizona is offering Tax Recovery, an opportunity for Arizona taxpayers to pay back taxes without penalty, interest, or criminal prosecution. Tax types included in the program include individual income tax, corporate income tax, transaction privilege (sales), and use tax.
From September 1 through October 15, 2015, Kansas is offering an amnesty program for tax periods ending on or before December 31, 2013. Tax types included in the program include individual, corporate, and fiduciary income tax, privilege tax, estate tax, withholding and estimated tax, sales tax (state and local), compensating use tax (sales and local), liquor enforcement tax, liquor drink tax, cigarette and tobacco products tax, and mineral severance tax.
From September 1 through October 30, 2015, Maryland is conducting the 2015 Tax Amnesty Program. The program waives all civil penalties (except for previously assessed fraud penalties) and 50 percent of the interest for delinquent taxpayers who apply and are approved. Tax types included in the program include personal income tax, fiduciary income tax, pass-through entity nonresident income tax, corporate income tax, employer withholding tax, sales and use tax, and admissions and amusement tax. Taxpayers who participated in Maryland’s 2001 or 2009 amnesty programs are not eligible to participate in the 2015 Tax Amnesty Program.
From September 1 through November 30, 2015, Missouri is conducting a tax amnesty program. Taxpayers with qualifying delinquencies can pay the amount of tax due in full without additional penalties and interest. Eligible tax types include consumer’s use tax, corporation franchise tax, corporation income tax, employer withholding tax, fiduciary tax, individual income tax, sales tax, and vendor’s use tax.
From September 14 through November 13, 2015, Oklahoma is offering the Oklahoma Voluntary Compliance Initiative, which covers tax periods ending on or before December 31, 2014. Qualifying tax types include mixed beverage tax, gasoline and diesel tax, gross production and petroleum excise tax, sales and use tax, income tax, withholding tax, and privilege tax.
September 30, 2015
Do you know about the benefits of the Tax Amnesty 2015 program? In return for full payment of the base tax liability, the Indiana Department of Revenue will waive penalties, interests, and collections fees and also will release tax liens that have been imposed on existing liabilities. In addition, eligible taxpayers can apply to have tax warrants expunged from their records.
If a tax warrant is expunged, it is removed from the taxpayer’s record. Having a tax warrant on your record can negatively impact your credit. This is a great way to move forward and start fresh.
In order to be eligible for tax warrant expungement, all outstanding tax liabilities, including Tax Amnesty 2015 liabilities, must be paid in full. The taxpayer also must be current on all tax filings.
To be considered for tax warrant expungement, submit a completed Tax Amnesty 2015 Expungement Form to the department no later than September 16, 2016. The department will review and approve or deny requests within 180 days of submission.
You can participate in Tax Amnesty 2015 by establishing a payment plan. Payment plan options consist of equal payments that are based on the total amount due and the number of months available to pay. All Tax Amnesty 2015 payment plans must be satisfied by June 15, 2016. The Tax Amnesty 2015 Expungement Form should not be submitted to the department until all outstanding liabilities have been paid in full.
If you have any questions related to Tax Amnesty 2015 or tax warrant expungement, contact the department at 1-844-TAXES-IN or email us at email@example.com.