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(d), for a tax period ending before July 1, 2004;
(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 4 of this chapter;
(5) section 5 of this chapter;
(6) section 6 of this chapter;
(7) section 7 of this chapter;
(8) section 9 of this chapter; or
(9) 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 (9).
(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)(9).
(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
the effective date of this section; or
(3) verifies with reasonable particularity that is satisfactory to
the commissioner that the taxpayer did not ever receive notice
of the outstanding tax liability.
As added by P.L.236-2005, SEC.3.
Last modified: May 28, 2006