Earlier this year the Indiana General Assembly approved a tax amnesty program that will go into effect September 15, 2015, and run through November 16, 2015. During this time, both businesses and individuals have the opportunity to pay past-due base tax liabilities free of penalty, interest, or collection fees. Companies based outside of the state but doing business in Indiana can also take advantage of this program to become current with Indiana tax obligations.
The program includes approximately 40 different tax types, including Indiana's adjusted gross income tax, sales and use tax, financial institutions tax and others. See Indiana Code § 6-8.1-1-1 for the complete list. Amnesty relief only applies to taxes that were due and payable for a tax period ending before January 1, 2013; however, the Indiana Department of Revenue (IDR) may be willing to work with taxpayers on later tax years. Those who elect to not participate in Tax Amnesty 2015, and are later found to be delinquent, will be subject to additional penalties.
This is the second-ever amnesty offered by Indiana. The last amnesty program conducted in 2005 collected $244 million in taxes owed to the State. Taxpayers who participated in the 2005 program are not eligible to participate in Tax Amnesty 2015.
The IDR has identified approximately $545 million in outstanding liabilities that may be eligible for collection during the 2015 amnesty. The first $84 million collected is earmarked to fund the Indiana Regional Cities Development Fund, an initiative which seeks to attract talent and grow Indiana's population.
“To continue to attract new investment and talent across our state, we must grow locally and think regionally,” said Governor Pence. “The 2015 Tax Amnesty program plays a critical role in helping to jumpstart the Regional Cities Initiative, encouraging collaboration among Hoosier communities to develop ways to bolster investment, attract talent, and continue Indiana on a pathway to economic growth and success.”
Additional dollars will support the Indiana Department of Transportation, the Hoosier State Rail Line, and the State's general fund.
Basic details about the program can be found online at www.taxamnesty.in.gov. More information, including online payment options, will become available as the amnesty dates approach. In the meantime, if you have any questions or would like to participate in Tax Amnesty 2015, please contact me or any of Kruggel Lawton's tax professionals.
Written by: Mike Varner, CPA, CGMA - Partner
Phone: 574.264.2247, x305