Section 6-8.1-3-17 - Settlement of tax liability disputes; waiver of interest and penalties(a) Before an original tax appeal is filed with the tax court under IC 33-26, the commissioner, or the taxpayer rights advocate office to the extent granted the authority by the commissioner, may settle any tax liability dispute if a substantial doubt exists as to: (1) the constitutionality of the tax under the Constitution of the State of Indiana;(2) the right to impose the tax;(3) the correct amount of tax due;(4) the collectability of the tax; or(5) whether the taxpayer is a resident or nonresident of Indiana.(b) After an original tax appeal is filed with the tax court under IC 33-26, and notwithstanding IC 4-6-2-11, the commissioner may settle a tax liability dispute with an amount in contention of twenty-five thousand dollars ($25,000) or less. Notwithstanding IC 6-8.1-7-1(a), the terms of a settlement under this subsection are available for public inspection.(c) The department shall establish an amnesty program for taxpayers having an unpaid tax liability for a listed tax that was due and payable for a tax period ending before January 1, 2013. A taxpayer is not eligible for the amnesty program: (1) for any tax liability resulting from the taxpayer's failure to comply with IC 6-3-1-3.5(b)(3) with regard to the tax imposed by IC 4-33-13 or IC 4-35-8; or(2) if the taxpayer participated in any previous amnesty program under:(A) this section (as in effect on December 31, 2014); or(B) IC 6-2.5-14. The time in which a voluntary payment of tax liability may be made (or the taxpayer may enter into a payment program acceptable to the department for the payment of the unpaid listed taxes in full in the manner and time established in a written payment program agreement between the department and the taxpayer) under the amnesty program is limited to the period determined by the department, not to exceed eight (8) regular business weeks ending before the earlier of the date set by the department or January 1, 2017. The amnesty program must provide that, upon payment by a taxpayer to the department of all listed taxes due from the taxpayer for a tax period (or payment of the unpaid listed taxes in full in the manner and time established in a written payment program agreement between the department and the taxpayer), entry into an agreement that the taxpayer is not eligible for any other amnesty program that may be established and waives any part of interest and penalties on the same type of listed tax that is being granted amnesty in the current amnesty program, and compliance with all other amnesty conditions adopted under a rule of the department in effect on the date the voluntary payment is made, the department:
(1) shall abate and not seek to collect any interest, penalties, collection fees, or costs that would otherwise be applicable;(2) shall release any liens imposed;(3) shall not seek civil or criminal prosecution against any individual or entity; and(4) shall not issue, or, if issued, shall withdraw, an assessment, a demand notice, or a warrant for payment under IC 6-8.1-5-1, IC 6-8.1-5-3, IC 6-8.1-8-2, or another law against any individual or entity; for listed taxes due from the taxpayer for the tax period for which amnesty has been granted to the taxpayer. Amnesty granted under this subsection is binding on the state and its agents. However, failure to pay to the department all listed taxes due for a tax period invalidates any amnesty granted under this subsection for that tax period. The department shall conduct an assessment of the impact of the tax amnesty program on tax collections and an analysis of the costs of administering the tax amnesty program. As soon as practicable after the end of the tax amnesty period, the department shall submit a copy of the assessment and analysis to the legislative council in an electronic format under IC 5-14-6. The department shall enforce an agreement with a taxpayer that prohibits the taxpayer from receiving amnesty in another amnesty program.
(d) For purposes of subsection (c), a liability for a listed tax is due and payable if: (1) the department has issued: (A) an assessment of the listed tax under IC 6-8.1-5-1;(B) a demand for payment under IC 6-8.1-5-3; or(C) a demand notice for payment of the listed tax under IC 6-8.1-8-2;(2) the taxpayer has filed a return or an amended return in which the taxpayer has reported a liability for the listed tax; or(3) the taxpayer has filed a written statement of liability for the listed tax in a form that is satisfactory to the department.(e) The department may waive interest and penalties if the general assembly enacts a change in a listed tax for a tax period that increases a taxpayer's tax liability for that listed tax after the due date for that listed tax and tax period. However, such a waiver shall apply only to the extent of the increase in tax liability and only for a period not exceeding sixty (60) days after the change is enacted. The department may adopt rules under IC 4-22-2 or issue guidelines to carry out this subsection.Amended by P.L. 93-2024,SEC. 58, eff. 7/1/2024.Amended by P.L. 146-2020,SEC. 38, eff. 7/1/2020.Amended by P.L. 214-2018SP1,SEC. 13, eff. 5/14/2018.Amended by P.L. 213-2015, SEC. 91, eff. 7/1/2015.As added by P.L. 332-1989 (ss), SEC.27. Amended by P.L. 28-1997, SEC.25; P.L. 98-2004, SEC.72; P.L. 236-2005, SEC.1.