IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.


Mobile Site RSS Feeds

DOR > About Us > Resources > Tax Talk Blog > What to do if you owe tax What to do if you owe tax

April 13, 2009

Let’s face it – most of us that are getting a refund have already filed our tax return and have spent or squirreled away the money. That leaves those of us who owe. And, in these tough financial times, this is an added stress no one looks forward to.

Well, if you’re feeling stuck, not quite sure what to do, here’s a two-part plan designed to help you move forward.

First, be proactive – make sure to file your tax return by April 15 even if you can’t pay the tax due. Filing your tax return will get the proverbial procrastination monkey off your back, and keep you on the right track.

Now, for the second issue; if you can’t pay the full amount due up front, you’ve got options. Here are two courses of action to help you get in gear:

  • Send in as much as you can when you file the tax return. Penalty and interest will be due on the unpaid amount, so the less you have left to pay the less these fees will be. Within a few weeks a billing will be issued to collect the balance due.
  • If you’re just flat out of funds right now, then go ahead and send in the tax return with no payment. Within a few weeks a billing will be issued for the tax, plus penalty and interest on the full amount due.

If you just can’t come up with the full amount due when the bill arrives, you may be eligible for a payment plan. Basically, if you owe more than $100, and can pay at least 20 percent down, you will qualify (businesses will qualify if they owe more than $500, and can pay at least 20 percent down). Contact us after you get the bill to make arrangements. Either drop us a note or call with your request (addresses and phone numbers are on the back of the billing). Once the plan is approved, you can mail in payments or pay online.

Now, about filing your tax return – While there are several ways to complete your tax return, if you’ve filed taxes in Indiana in the past, then you’re eligible to file using I-File, the state’s fast, friendly and free online filing program. Most people who use I-File complete their tax return within 30 minutes or less. Plus, it will allow you to file even if you can’t pay the tax due.

Filing your tax return and taking advantage of options to pay your tax due will get you headed in the right direction. Now that’s a course to follow.

If you would like to submit a question or topic suggestions, please send those to feedback@dor.in.gov.