Settlement of tax liability disputes
Sec. 17. (a) Before an original tax appeal is filed with the tax
court under IC 33-26, 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 collectibility 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 July 1, 2004. A taxpayer
is not eligible for the amnesty program 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. 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 July 1, 2006. 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 6-8.1-5-3,
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 and demand for payment
under IC 6-8.1-5-3; or
(B) 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.
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.
Last modified: May 28, 2006