Version b
Liability for interest
Note: This version of section amended by P.L.236-2005, SEC.2.
See also preceding version of this section amended by P.L.2-2005,
SEC.23.
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 money for the
state's previous fiscal year, excluding pension fund investments, as
published in the auditor of state's comprehensive annual financial
report. For purposes of IC 6-8.1-9-2(c), the adjusted rate of interest
for an excess tax payment is the percentage rounded to the nearest
whole number that equals the average investment yield on state
money for the state's previous fiscal year, excluding pension fund
investments, as published in the auditor of state's comprehensive
annual financial report. 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(c) and IC 6-8.1-5-2, 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.236-2005,
SEC.2.
Last modified: May 28, 2006