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Indiana 2015 Tax Amnesty Program Under Fire for Inaccurate Notices

The Indiana 2015 Tax Amnesty Program, which ends on November 16, 2015, offers Indiana residents an opportunity to pay unpaid Indiana taxes without having to pay penalties, interest and collection fees. The incentive is clear, but many Indiana residents have been receiving notifications from the Indiana Department of Revenue stating eligibility for this program when, in fact, the taxpayer is not actually liable for the unpaid taxes. The Indiana Department of Revenue has admitted that many taxpayers receiving these notices are not actually liable for the taxes owed.  Our firm has already had to address such inaccuracies.

The error appears to come from the Department of Revenue’s failure to fully review some 150,000 accounts that were outsourced to a third-party state contractor for mailing. The Department of Revenue has since ordered that this contractor immediately stop the mailings, but many taxpayers may have already paid the taxes out of concern of liability despite not truly being personally liable for the tax amount allegedly owed.

Payment of the taxes can cause unforeseen consequences. For example, if a taxpayer elects to participate in the 2015 Tax Amnesty Program, the taxpayer “forego[es] all rights to protest the assessment and may not file a later claim for refund.” Accordingly, it is imperative that taxpayers carefully review whether or not they are in fact liable for the alleged tax liability and obtain legal advice if there is any doubt.

To learn more about Indiana’s 2015 Tax Amnesty Program and whether you or your business qualify for tax amnesty, please contact attorney Matt Malcolm at mmalcolm@kddk.com or (812) 423-3183, or contact any member of the KDDK business law practice team.

About the Author

Matthew D. Malcolm, Indiana Attorney

Matthew D. Malcolm

Matthew D. Malcolm, an attorney at Kahn, Dees, Donovan & Kahn, LLP, in Evansville, Indiana, practices business law, economic development law, real estate law, and creditors’ rights and collections law in the State of Indiana. Focusing on results, he is interested in meeting each client’s needs and providing quality counsel.