Ind. Code ch. 6-8.1-10

Ind. Code ch. 6-8.1-10
in effect

Ind. Code § 6-8.1-10-1 Liability for interest

Sec. 1. (a) If a person fails to file a return for any of the listed taxes, fails to pay the full amount of tax shown on the person's return by the due date for the return or the payment, or incurs a deficiency upon a determination by the department, the person is subject to interest on the nonpayment. (b) The interest for a failure described in subsection (a) is the adjusted rate established by the commissioner under subsection (c), from the due date for payment. The interest applies to: (1) the full amount of the unpaid tax due if the person failed to file the return; (2) the amount of the tax that is not paid, if the person filed the return but failed to pay the full amount of tax shown on the return; or (3) the amount of the deficiency. (c) The commissioner shall establish an adjusted rate of interest for a failure described in subsection (a) and for an excess tax payment on or before November 1 of each year. For purposes of subsection (b), the adjusted rate of interest shall be the percentage rounded to the nearest whole number that equals two (2) percentage points above the average investment yield on state general fund money for the state's previous fiscal year, excluding pension fund investments, as determined by the treasurer of state on or before October 1 of each year and reported to the commissioner. For purposes of IC 6-8.1-9-2(c), the adjusted rate of interest for an excess tax payment must be the same as the adjusted rate of interest determined under this subsection for a failure described in subsection (a). The adjusted rates of interest established under this subsection shall take effect on January 1 of the immediately succeeding year. (d) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return. (e) Except as provided by IC 6-8.1-3-17(d), IC 6-8.1-3-17(f), IC 6-8.1-5-2, and section 2.1(k) of this chapter, the department may not waive the interest imposed under this section. (f) Subsections (a) through (c) do not apply to a motor carrier fuel tax return. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.60-1990, SEC.13; P.L.48-1994, SEC.3; P.L.2-1995, SEC.36; P.L.2-2005, SEC.23; P.L.236-2005, SEC.2; P.L.1-2006, SEC.147; P.L.211-2007, SEC.43; P.L.113-2014, SEC.13; P.L.214-2018(ss), SEC.14; P.L.234-2019, SEC.36; P.L.1-2025, SEC.105.

Ind. Code § 6-8.1-10-2 Repealed

As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.55-1990, SEC.2; P.L.60-1990, SEC.14. Repealed by P.L.1-1991, SEC.69.

Ind. Code § 6-8.1-10-2.1 Liability for penalty; reasonable cause presumption

Sec. 2.1. (a) Except as provided in IC 6-3-4-12(k) and IC 6-3-4-13(l), a person that: (1) fails to file a return for any of the listed taxes; (2) fails to pay the full amount of tax shown on the person's return on or before the due date for the return or payment; (3) incurs, upon examination by the department, a deficiency that is due to negligence; (4) fails to timely remit any tax held in trust for the state; (5) fails to file a return in the electronic manner required by the department if such return is required to be filed electronically; or (6) is required to make a payment by electronic funds transfer (as defined in IC 4-8.1-2-7), overnight courier, personal delivery, or any other electronic means and the payment is not received by the department by the due date in such manner and in funds acceptable to the department; is subject to a penalty. (b) Except as provided in subsection (g), the penalty described in subsection (a) is ten percent (10%) of: (1) the full amount of the tax due if the person failed to file the return or, in the case of a return required to be filed electronically, the return is not filed in the electronic manner required by the department; (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 required to be made by electronic funds transfer, overnight courier, personal delivery, or any other electronic means by the due date in such manner. (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: (1) corporation which otherwise qualifies under IC 6-3-2-2.8(2); (2) partnership; or (3) trust; that fails to withhold and pay any amount of tax required to be withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15 shall pay a penalty equal to twenty percent (20%) of the amount of tax required to be withheld under IC 6-3-4-12, IC 6-3-4-13, or IC 6-3-4-15. This penalty shall be in addition to any penalty imposed by section 6 of this chapter. (i) Subsections (a) through (c) do not apply to a motor carrier fuel tax return. (j) If a pass through entity (as defined in IC 6-3-1-35) fails to include all nonresident partners, nonresident shareholders, or nonresident beneficiaries in a composite return as required by IC 6-3-4-12(j), IC 6-3-4-13(k), or IC 6-3-4-15(i), a penalty of five hundred dollars ($500) per pass through entity is imposed on the pass through entity. For purposes of this subsection: (1) no penalty shall be imposed on the failure to list nonresident partners, nonresident shareholders, or nonresident beneficiaries not described in IC 6-3-4-12(j), IC 6-3-4-13(k), or IC 6-3-4-15(i), on a composite return; and (2) the determination of whether a partner, shareholder, or beneficiary is required to be included on a composite return shall be determined at the time the pass through entity files its return required under IC 6-3 unless the determination by the pass through entity was the result of: (A) fraud; or (B) intentional or reckless disregard of IC 6-3 or the Internal Revenue Code. (k) If a person subject to the penalty imposed under this section provides the department with documentation showing that the person is or has been subject to incarceration for a period of a least one hundred eighty (180) days, the department shall waive any penalty under this section and interest that accrues during the time the person was incarcerated, but not to an extent greater than the penalty or interest relief to which a person would otherwise have been entitled under the federal Servicemembers Civil Relief Act (50 U.S.C. 3901-4043), if the person was in military service. Nothing in this subsection shall preclude the department from issuing a proposed assessment, demand notice, jeopardy proposed assessment, jeopardy demand notice, or warrant otherwise permitted by law. (l) Beginning after December 31, 2024, reasonable cause under this section for failure to file a timely and complete form IT-65 partnership return will be presumed if the partnership (or any of its partners) is able to show that all of the following conditions have been met: (1) The partnership had no more than ten (10) partners for the taxable year. (A husband and wife filing a joint return count as one (1) partner.) (2) Each partner during the tax year was a natural person (other than a nonresident alien), or the estate of a natural person. (3) Each partner's proportionate share of any partnership item is the same as the partner's proportionate share of any other partnership item. (4) The partnership did not elect to be subject to the rules for federal consolidated audit proceedings under Sections 6221 through 6234 of the Internal Revenue Code. (5) All partners reported their distributive share of partnership items on their timely filed income tax returns. As added by P.L.1-1991, SEC.70. Amended by P.L.71-1993, SEC.26; P.L.18-1994, SEC.43; P.L.211-2007, SEC.44; P.L.182-2009(ss), SEC.258; P.L.293-2013(ts), SEC.34; P.L.181-2016, SEC.30; P.L.234-2019, SEC.37; P.L.159-2021, SEC.37; P.L.137-2022, SEC.88; P.L.230-2025, SEC.91; P.L.48-2026, SEC.5.

Ind. Code § 6-8.1-10-3 Failure to file return; preparation by department; penalty

Sec. 3. (a) If a person fails to file a return on or before the due date, the department shall send him a notice, by United States mail, stating that he has thirty (30) days from the date the notice is mailed to file the return. If the person does not file the return within the thirty (30) day period, the department may prepare a return for him, based on the best information available to the department. The department prepared return is prima facie correct. (b) If the department prepares a person's return under this section, the person is subject to a penalty of twenty percent (20%) of the unpaid tax. In the absence of fraud, the penalty imposed under this section is in place of and not in addition to the penalties imposed under any other section. As added by Acts 1980, P.L.61, SEC.1.

Ind. Code § 6-8.1-10-3.5 Failure to file return; penalty for past due returns

Sec. 3.5. If a person fails to file a return on or before the due date as required by IC 6-3-4-1(1) or IC 6-3-4-1(2), where no remittance is due with the return, the person is subject to a penalty of ten dollars ($10) per day for each day that the return is past due, up to a maximum of five hundred dollars ($500). As added by P.L.131-2008, SEC.31.

Ind. Code § 6-8.1-10-4 Failure to file return; fraudulent intent to evade tax; penalty

Sec. 4. (a) If a person fails to file a return or to make a full tax payment with that return with the fraudulent intent of evading the tax, the person is subject to a penalty. (b) The amount of the penalty imposed for a fraudulent failure described in subsection (a) is one hundred percent (100%) multiplied by: (1) the full amount of the tax, if the person failed to file a return; or (2) the amount of the tax that is not paid, if the person failed to pay the full amount of the tax. (c) In addition to the civil penalty imposed under this section, a person who knowingly fails to file a return with the department or fails to pay the tax due under IC 6-6-5, IC 6-6-5.1, or IC 6-6-5.5 commits a Class A misdemeanor. (d) The penalty imposed under this section is imposed in place of and not in addition to the penalty imposed under section 2.1 of this chapter. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.26-1985, SEC.16; P.L.6-1987, SEC.14; P.L.335-1989(ss), SEC.24; P.L.1-1991, SEC.71; P.L.181-1999, SEC.8; P.L.131-2008, SEC.32.

Ind. Code § 6-8.1-10-5 Faulty payment; penalty; required use of guaranteed funds

Sec. 5. (a) As used in this section, "payment instrument" means: (1) a check; (2) a credit card; (3) a debit card; (4) an electronic funds transfer; or (5) any other instrument in payment by any commercially allowable means. (b) If a person makes a payment to the department for an amount due to the department with a payment instrument and the department is unable to obtain payment on the payment instrument for the full amount of the attempted payment when the payment instrument is presented for payment through the normal banking channels, the department shall: (1) notify the person that the department was unable to obtain payment on the full amount of the payment instrument; and (2) assess a penalty of thirty-five dollars ($35) not more than thirty (30) days after the department was unable to obtain payment. (c) If the department determines that the person made a payment described in subsection (b) fraudulently or otherwise knowing that the department would be unable to obtain payment on the payment instrument for the full amount of the attempted payment when the payment instrument is presented for payment through normal banking channels, the penalty is equal to one hundred percent (100%) of the amount on which the department was unable to obtain payment, but not less than thirty-five dollars ($35). The following apply: (1) A penalty assessment under this subsection shall be made not more than three (3) years after the department was unable to obtain payment. (2) The penalty under this subsection shall not be made in addition to the penalty under subsection (b)(2). However, nothing shall prohibit the department from issuing a penalty under this subsection with regard to a payment after a penalty under subsection (b)(2) was issued. (3) If a penalty under this subsection is reduced to the amount specified in subsection (b)(2), the department may issue a new assessment for the penalty within thirty (30) days after the final determination of the penalty reduction. (d) If the department is unable to obtain payment on a payment instrument, the amount on which the department was unable to obtain payment shall not be considered to be a payment of that amount. (e) The following apply: (1) Any penalty under subsection (b)(2) is due not less than twenty (20) days after the department issues the assessment under subsection (b)(2). (2) If the person fails to pay the penalty provided under this section in full within the time specified by the department, the department may file a tax warrant for the unpaid portion of the penalty in the manner provided under IC 6-8.1-8-2. (3) For purposes of this article, a penalty under subsection (b)(2) shall not be considered to be a proposed assessment under IC 6-8.1-5-1. (f) If a person receives a penalty under subsection (c), the penalty shall be treated as a proposed assessment as provided in IC 6-8.1-5-1. However, if the person pays the penalty under subsection (c) and files a claim for refund of the penalty, notwithstanding IC 6-8.1-9-1, the payment of the penalty shall not be refunded unless the person protested the penalty pursuant to IC 6-8.1-5-1 in a timely manner. (g) The following apply: (1) If the penalty under subsection (b)(2) relates to an attempted payment of a liability for which the department has filed a tax warrant under IC 6-8.1-8-2 or for which the department files a tax warrant under IC 6-8.1-8-2 prior to the expiration of the period specified in subsection (e), the tax warrant may include the amount of the penalty provided in this section prior to the expiration of the period specified in subsection (e). (2) If a penalty under this section is included as part of a proposed assessment under IC 6-8.1-5-1, the filing of a tax warrant for the penalty under this section shall be timely if the tax warrant for the penalty: (A) was filed on or before the day as a timely filed tax warrant for the proposed assessment; (B) was filed as part of the tax warrant for the proposed assessment; or (C) was otherwise filed within the period allowable under IC 6-8.1-8-2. (h) The following apply: (1) The department may waive the penalty under this section if the person establishes that the person acted with reasonable cause in the attempted payment. (2) If the department determines that the penalty under subsection (b)(2) shall not be waived, including a reduction of a penalty under subsection (c) to the amount specified in subsection (b)(2), the determination is not subject to administrative or judicial review. (3) If the department determines that the penalty under this section should be waived, but the liability for the penalty has advanced to a tax warrant: (A) the amount due under the tax warrant shall be reduced by the amount of any penalty under this section included in the tax warrant but not paid; or (B) if the person has paid the penalty under this section, the department shall refund the penalty under this section paid by the person. (4) Nothing shall prohibit judicial review of a penalty under this section if the penalty was imposed on a payment instrument upon which the department was able to collect the full amount of the payment instrument upon presentation of the payment through the normal banking channels. (i) If a person has been subject to a penalty under this section more than one (1) time during a twenty-four (24) month period, or has been subject to a penalty under subsection (c) that has not been reduced or waived, the department may require the person to remit all future payments for all listed taxes with guaranteed funds. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.26-1985, SEC.17; P.L.18-1994, SEC.44; P.L.131-2008, SEC.33; P.L.182-2009(ss), SEC.259; P.L.293-2013(ts), SEC.35; P.L.146-2020, SEC.46.

Ind. Code § 6-8.1-10-6 Failure to file information return; penalty; exceptions

Sec. 6. (a) As used in this section, "information return" means the following when a statute or rule requires the following to be filed with the department: (1) Schedule K-1 of form IT-20S, IT-41, or IT-65. (2) Any form, statement, or schedule required to be filed with the department with respect to an amount from which tax is required to be deducted and withheld under IC 6 or from which tax would be required to be deducted and withheld but for an exemption under IC 6. (3) Any form, statement, or schedule required to be filed with the Internal Revenue Service under 26 C.F.R. 301.6721-1(g) (1993). The term does not include form IT-20FIT, IT-20S, IT-20SC, IT-41, or IT-65. (b) If a person fails to file an information return required by the department, or fails to electronically file an information return that is required by the department to be filed in an electronic format, a penalty of ten dollars ($10) for: (1) each failure to file a timely return; or (2) each failure to electronically file a timely return required by the department to be in an electronic format; not to exceed twenty-five thousand dollars ($25,000) in any one (1) calendar year, is imposed. (c) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return. (d) Beginning after December 31, 2024, a person that has been granted penalty relief under section 2.1(l) of this chapter for failure to file a timely and complete form IT-65 partnership return shall not be subject to a penalty under this section for failure to file the information return Schedule K-1 of form IT-65 for which penalty relief was granted. As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.18-1994, SEC.45; P.L.234-2019, SEC.38; P.L.230-2025, SEC.92.

Ind. Code § 6-8.1-10-7 Maximum and minimum penalties

Sec. 7. Notwithstanding the various penalty provisions of this chapter, the maximum total penalty that may be assessed against a person under sections 2.1 through 5 of this chapter is one hundred percent (100%) of the unpaid tax and the minimum penalty, if any, that may be assessed under those sections is five dollars ($5). As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.383-1987(ss), SEC.2; P.L.1-1991, SEC.72; P.L.71-1993, SEC.27.

Ind. Code § 6-8.1-10-8 Repealed

As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.149-1986, SEC.39. Repealed by P.L.107-1987, SEC.50.

Ind. Code § 6-8.1-10-9 Dissolution, liquidation, or withdrawal of corporation; notification; clearance

Sec. 9. (a) As used in this section: (1) "Dissolution" refers to dissolution of a corporation under IC 23-0.5-6, IC 23-1-45, IC 23-1-47, IC 23-1-48, or IC 23-17-24. (2) "Liquidation" means the operation or act of winding up a corporation's affairs, when normal business activities have ceased, by settling its debts and realizing upon and distributing its assets. (3) "Withdrawal" refers to the withdrawal of a foreign corporation from Indiana under IC 23-0.5-5-7. (b) The officers and directors of a corporation effecting dissolution, liquidation, or withdrawal shall do the following: (1) File all necessary tax returns in a timely manner as required by this title. (2) Make all tax payments due or determined due to the department or a county treasurer in a timely manner as required by this title. (3) File with the department a form of notification within thirty (30) days of the issuance of a certificate of dissolution, decree of dissolution, the adoption of a resolution or plan, or the filing of a statement of withdrawal. The form of notification shall be prescribed by the department and may require information concerning: (A) the corporation's assets; (B) the corporation's liabilities; (C) details of the plan or resolution; (D) the names and addresses of corporate officers, directors, and shareholders; (E) a copy of the minutes of the shareholders' meeting at which the plan or resolution was formally adopted; and (F) such other information as the department may require. The department may accept, in lieu of its own form of notification, a copy of Form 966 that the corporation filed with the Internal Revenue Service. (c) Unless a clearance is issued under subsection (g), for a period of one (1) year following the filing of the form of notification with the department, or the filing of all necessary tax returns as required by this title, including the final tax return, whichever is later, the corporate officers and directors remain personally liable, subject to IC 23-1-35-1(e) or IC 23-17, for any acts or omissions that result in the distribution of corporate assets in violation of the interests of the state or a political subdivision (as defined in IC 36-1-2-13). An officer or director held liable for an unlawful distribution under this subsection is entitled to contribution: (1) from every other director who voted for or assented to the distribution, subject to IC 23-1-35-1(e) or IC 23-17; and (2) from each shareholder for the amount the shareholder accepted. (d) The corporation's officers' and directors' personal liability includes all taxes, penalties, interest, and fees associated with the collection of the liability due the department or the county. In addition to the penalties provided elsewhere in this title, a penalty of up to thirty percent (30%) of the unpaid tax may be imposed on the corporate officers and directors for failure to take reasonable steps to set aside corporate assets to meet the liability due the department or the county. (e) If the department or the county treasurer fails to begin a collection action against a corporate officer or director within the period prescribed by subsection (c), the personal liability of the corporate officer or director expires. The filing of a substantially blank form of notification or a form containing misrepresentation of material facts does not constitute filing a form of notification for the purpose of determining the period of personal liability of the officers and directors of the corporation. (f) In addition to the remedies contained in this section, the department or county treasurer is entitled to pursue corporate assets that have been distributed to shareholders in violation of the interests of the state or political subdivision. The election to pursue one (1) remedy does not foreclose the state's or the county's option to pursue other legal remedies. (g) The department may issue a clearance to a corporation effecting dissolution, liquidation, or withdrawal if: (1) the officers and directors of the corporation have met the requirements of subsections (b) through (c); and (2) request for the clearance is made in writing by the officers and directors of the corporation within thirty (30) days after the filing of the form of notification with the department. (h) The issuance of a clearance by the department under subsection (g) releases the officers and directors from personal liability under this section. (i) This section does not limit the liability of a responsible corporate officer for withheld income taxes or collected gross retail taxes. As added by P.L.107-1987, SEC.1. Amended by P.L.73-1988, SEC.1; P.L.179-1991, SEC.11; P.L.118-2017, SEC.2.

Ind. Code § 6-8.1-10-9.5 Successor liability for certain unpaid taxes; notice; procedure

Sec. 9.5. (a) As used in this section, the following terms have the following meanings: (1) "Successor in liability" means a person that directly or indirectly purchases, acquires, is gifted, or succeeds to ownership of more than one-half (1/2) of all tangible personal property of a business, by value, including inventory, at all locations combined, as measured by the value of the property at the time of the transfer. "Successor in liability" does not include a personal representative or beneficiary of an estate, a trustee in bankruptcy, a debtor in possession, a receiver, a secured party, a mortgagee, an assignee of rents, or any other lienholder. A person shall only be considered a successor in liability to the extent that: (A) a department lien or liens exist on tangible personal property transferred to the person; (B) all tax due by the transferring business to the extent that notice was not provided to the department as required by subsection (b); or (C) any tax due was included in the summary mailed to the successor in liability by the department pursuant to subsection (c). (2) "Purchase price" means the consideration paid or to be paid by the successor in liability to the transferring business for the transfer of tangible personal property. "Purchase price" also includes debts assumed or forgiven by the successor in liability, or real or personal property conveyed or to be conveyed by the successor in liability to the transferring business. (3) "Arm's-length transaction" means a transfer for adequate consideration between independent parties both acting in their own best interests. If the parties are related to each other, a rebuttable presumption arises that the transaction is not at arm's length. (4) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with a business or an interest in a business, or a stock of goods, whether by gift or for consideration. "Transfer" includes a change in the type of business entity or the name of the business, where one (1) business is discontinued and a new business is started. "Transfer" also includes the acquisition by a new corporation of the assets of a prior business in exchange for the stock of the new corporation. "Transfer" does not include an assignment for the benefit of creditors, foreclosure or enforcement of a mortgage, assignment of rents, security interest or lien, sale or disposition in a bankruptcy proceeding, or sale or disposition by a receiver. (5) "Transfer in bulk" means a transfer, other than in the ordinary course of the transferor's trade or business, of more than one-half (1/2) of all the tangible personal property of a business, by value, including inventory, at all locations combined, as measured by the value of the property at the time of the transfer. (6) "Tax" means the gross retail tax imposed by IC 6-2.5-2-1, the use tax imposed by IC 6-2.5-3-2, and any county innkeepers tax or food and beverage tax imposed by IC 6-9. (7) "Good cause" means the inability to comply with the statutory requirements of this section due to force majeure, fraud, failure of delivery by a carrier, or similar circumstances beyond the control of the successor. Lack of knowledge by the successor in liability of the requirements of this section shall not be considered good cause. Failure of a transferee or third party to provide the notice required by subsection (b) pursuant to a contractual obligation or informal understanding shall not be considered to be good cause. (b) Whenever a business engages in a transfer in bulk, at least forty-five (45) days before taking possession of the assets or paying the purchase price, the potential successor in liability or the transferring business shall notify the department of the transfer and the terms and conditions related to the transfer on a form prescribed by the department. The notice must include the tax identification number of the transferring business and the potential successor in liability. (c) The following apply: (1) If the notice is not provided to the department as required in subsection (b), the potential successor in liability becomes the successor in liability and becomes liable for any unpaid taxes, interest, and penalties due from the transferring business to the extent of the purchase price. (2) If the notice is provided as required in subsection (b) and, within twenty (20) days after receipt of the notice, the department places a summary in the United States mail addressed to the successor in liability specifying that tax liabilities exist in addition to those subject to a department lien or there are tax returns due but not filed, the successor in liability is liable for all taxes, interest, and penalties as stated in the department's summary to the extent of the purchase price if the successor in liability pays the purchase price or takes possession of the assets without withholding and remitting the liability to the department. The successor in liability is liable whether the purchase price is paid or the assets are transferred prior to or after notification from the department. (3) If the department does not find any tax is due from the transferring business or that the transferring business has failed to file any returns that are due, the department must place a tax clearance letter in the United States mail addressed to the potential successor in liability within twenty (20) days after receipt of the notice required by subsection (b) specifying that no tax liabilities exist and that the transferee is not a successor in liability. The department shall issue the tax clearance letter even if the department determines that the transfer at issue does not constitute a transfer in bulk pursuant to subsection (a). (d) If, based upon the information available, the department determines that a transfer in bulk was not at arm's length or was a gift, the successor's liability under this section equals the value of the tangible personal property transferred. Upon such a determination, the department may require that the successor in liability provide a third party valuation of the tangible personal property transferred. (e) In the case of a gift resulting in successor liability under this section, the return of the gifted property by the donee to the donor releases the donee's successor liability. (f) A potential successor in liability that complies with the requirements of subsections (b) and (c) is not liable for any assessments of taxes of the transferring business made after the department provides a summary to the potential successor in liability under subsection (c), except for taxes assessed on returns filed to comply with the summary. If the department fails to place the required summary in the United States mail within the twenty (20) day period, the potential successor in liability is not liable for any taxes of the transferring business, except with regard to transfers subject to subsection (d), if the purchase price is paid and the potential successor in liability takes possession of the assets within sixty (60) days of the mailing date the notice required pursuant to subsection (b). If the purchase price is not paid or the potential successor in liability does not take possession of the assets within sixty (60) days of the mailing date of the notice required pursuant to subsection (b), the potential successor in liability or the transferring business must submit a new notice pursuant to subsection (b). (g) If the required notice under subsection (b) is not filed or any tax liability included in a summary mailed by the department pursuant to subsection (c)(2) remains due after the purchase price is paid or the successor in liability takes possession of the assets, the department must issue a notice of proposed assessment to the successor in liability for any such tax due. (h) A successor in liability may protest the underlying tax unless the transferring business has already exhausted its protest rights with regard to the underlying tax. A successor in liability may also protest whether they qualify as a successor in liability with regard to the tax. In addition, the successor in liability may protest by submitting evidence showing good cause for not submitting the required notice or completing the purchase before receiving a clearance letter from the department. In the event that the transferring business has protested any taxes identified in the department's notice mailed pursuant to subsection (c)(2), the potential successor in liability shall not be considered a successor in liability with respect to such taxes if the potential successor in liability places an amount in escrow sufficient to satisfy such taxes pending resolution of the transferring business's administrative and legal process protesting such taxes. (i) A transfer in bulk shall not constitute a retail transaction except for any inventory, motor vehicles, watercraft, aircraft, or rental property transferred. (j) A transferor in bulk and any responsible person thereof shall not be relieved of liability for any tax, interest, or penalties when a successor in interest also becomes liable for the tax, interest, and penalties. No owner, shareholder, director, officer, or employee of a successor in liability shall be considered to be a responsible person relative to any tax, interest or penalties owed by the purchaser as a successor. (k) The department has discretion in assessing and collecting the tax due from any liable party, but the department cannot collect more than the total tax, interest, and penalties imposed. The ability of the department to impose collections fees on the liable parties as otherwise allowed by this article shall not be impacted by this section. As added by P.L.194-2023, SEC.33. Amended by P.L.128-2026, SEC.79.

Ind. Code § 6-8.1-10-12 Additional penalty; failure to participate in amnesty program

Sec. 12. (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 April 1, 2026; (3) verifies with reasonable particularity that is satisfactory to the commissioner that the taxpayer did not ever receive notice of the outstanding tax liability; or (4) has a liability that consists only of a penalty imposed with regard to a listed tax for a tax period or has a liability for penalties that is greater than one hundred percent (100%) of the total liabilities for listed taxes eligible for participation in the tax amnesty program. 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; P.L.128-2026, SEC.80.

Ind. Code § 6-8.1-10-13 Civil penalties for violations

Sec. 13. (a) A person that: (1) obtains a permit, license plate, cab card, or any other credential issued by the registration center established under IC 6-8.1-4-4; and (2) alters or violates the terms of the permit, license plate, cab card, or other credential under IC 6-8.1-4-4; is subject to a civil penalty of five hundred dollars ($500) for the first violation and one thousand dollars ($1,000) for each subsequent violation. (b) A person that: (1) is required to obtain a permit, a license plate, a cab card, or other credential issued by the registration center established under IC 6-8.1-4-4; and (2) operates without obtaining a permit, license plate, cab card, or other credential required under IC 6-8.1-4-4 or operates with an expired permit, license plate, cab card, or other credential required under IC 6-8.1-4-4; is subject to a civil penalty of five thousand dollars ($5,000) for each violation. (c) A civil penalty imposed under this section: (1) shall be deposited in the motor carrier regulation fund established by IC 8-2.1-23-1; and (2) is in addition to any fines levied by a court. As added by P.L.176-2006, SEC.7. Amended by P.L.218-2017, SEC.59.

Ind. Code § 6-8.1-10-14 Deposit of penalties and interest for certain taxes

Sec. 14. (a) Except as otherwise provided in this section or by the provisions of a listed tax, any penalties and interest resulting from a listed tax shall be deposited as if it were the listed tax to which the penalty and interest are associated. (b) In the case of penalties or interest paid with regard to a tax imposed under IC 6-3.5-1.1 (before its repeal), IC 6-3.5-6 (before its repeal), IC 6-3.5-7 (before its repeal), or IC 6-3.6 (local income tax), the penalties and interest shall be deposited in the state general fund. (c) In the case of penalties or interest associated with the late payment of a tax imposed under IC 6-6-9, IC 6-6-9.5, IC 6-6-9.7, or IC 6-6-16, or the taxes imposed under IC 6-9 by local units, penalties and interest shall be distributed to the appropriate local unit and shall be distributed, spent, or otherwise managed in the same manner as the underlying tax. (d) Amounts collected under IC 6-8.1-10-5 shall be deposited in the state general fund. As added by P.L.194-2023, SEC.34.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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