Judgments arising from liens
Sec. 2. (a) Except as provided in IC 6-8.1-5-3, the department
must issue a demand notice for the payment of a tax and any interest
or penalties accrued on the tax, if a person files a tax return without
including full payment of the tax or if the department, after ruling on
a protest, finds that a person owes the tax before the department
issues a tax warrant. The demand notice must state the following:
(1) That the person has ten (10) days from the date the
department mails the notice to either pay the amount demanded
or show reasonable cause for not paying the amount demanded.
(2) The statutory authority of the department for the issuance of
a tax warrant.
(3) The earliest date on which a tax warrant may be filed and
recorded.
(4) The remedies available to the taxpayer to prevent the filing
and recording of the judgment.
If the department files a tax warrant in more than one (1) county, the
department is not required to issue more than one (1) demand notice.
(b) If the person does not pay the amount demanded or show
reasonable cause for not paying the amount demanded within the ten
(10) day period, the department may issue a tax warrant for the
amount of the tax, interest, penalties, collection fee, sheriff's costs,
clerk's costs, and fees established under section 4(b) of this chapter
when applicable. When the department issues a tax warrant, a
collection fee of ten percent (10%) of the unpaid tax is added to the
total amount due.
(c) When the department issues a tax warrant, it may not file the
warrant with the circuit court clerk of any county in which the person
owns property until at least twenty (20) days after the date the
demand notice was mailed to the taxpayer. The department may also
send the warrant to the sheriff of any county in which the person
owns property and direct the sheriff to file the warrant with the
circuit court clerk:
(1) at least twenty (20) days after the date the demand notice
was mailed to the taxpayer; and
(2) no later than five (5) days after the date the department
issues the warrant.
(d) When the circuit court clerk receives a tax warrant from the
department or the sheriff, the clerk shall record the warrant by
making an entry in the judgment debtor's column of the judgment
record, listing the following:
(1) The name of the person owing the tax.
(2) The amount of the tax, interest, penalties, collection fee,
sheriff's costs, clerk's costs, and fees established under section
4(b) of this chapter when applicable.
(3) The date the warrant was filed with the clerk.
(e) When the entry is made, the total amount of the tax warrant
becomes a judgment against the person owing the tax. The judgment
creates a lien in favor of the state that attaches to all the person's
interest in any:
(1) chose in action in the county; and
(2) real or personal property in the county;
excepting only negotiable instruments not yet due.
(f) A judgment obtained under this section is valid for ten (10)
years from the date the judgment is filed. The department may renew
the judgment for additional ten (10) year periods by filing an alias
tax warrant with the circuit court clerk of the county in which the
judgment previously existed.
(g) A judgment arising from a tax warrant in a county may be
released by:
(1) the department or by the county sheriff after the judgment,
including all accrued interest to the date of payment, has been
fully satisfied; or
(2) the department if the department determines that the tax
assessment or the issuance of the tax warrant was in error.
(h) If the department determines that the filing of a tax warrant
was in error, the department shall mail a release of the judgment to
the taxpayer and the circuit court clerk of each county where the
warrant was filed. The department shall mail the release as soon as
possible but no later than seven (7) days after:
(1) the determination by the department that the filing of the
warrant was in error; and
(2) the receipt of information by the department that the
judgment has been recorded under subsection (d).
(i) If the department determines that a judgment described in
subsection (h) is obstructing a lawful transaction, the department
shall mail a release of the judgment to the taxpayer and the circuit
court clerk of each county where the judgment was filed immediately
upon making the determination.
(j) A release issued under subsection (h) or (i) must state that the
filing of the tax warrant was in error. Upon the request of the
taxpayer, the department shall mail a copy of a release issued under
subsection (h) or (i) to each major credit reporting company located
in each county where the judgment was filed.
(k) The commissioner shall notify each state agency or officer
supplied with a tax warrant list of the issuance of a release under
subsection (h) or (i).
(l) If the sheriff collects the full amount of a tax warrant, the
sheriff shall disburse the money collected in the manner provided in
section 3(c) of this chapter and then release the judgment. If a
judgment has been partially or fully satisfied by a person's surety, the
surety becomes subrogated to the department's rights under the
judgment and the sheriff may not release the judgment until the
surety's rights under the judgment have been satisfied by the person.
If a sheriff releases a judgment:
(1) before the judgment is fully satisfied;
(2) before the sheriff has properly disbursed the amount
collected; or
(3) after the sheriff has returned the tax warrant to the
department;
the sheriff commits a Class B misdemeanor and is personally liable
for the part of the judgment not remitted to the department.
As added by Acts 1980, P.L.61, SEC.1. Amended by
P.L.332-1989(ss), SEC.29; P.L.71-1993, SEC.22; P.L.18-1994,
SEC.42; P.L.129-2001, SEC.22.
Last modified: May 28, 2006