INDIANAPOLIS
(May 12, 2005) – Governor Mitch Daniels’ plan to pursue hundreds of
millions of dollars in unpaid taxes owed the State of Indiana by offering
delinquent taxpayers a one-time opportunity to pay up without penalty became
law today with his signature on HEA 1004.
It is
estimated that Indiana
is owed more than $600 million in delinquent taxes. The Department of Revenue will
offer tax amnesty from Sept. 15 to Nov. 15. Penalties, interest and collection
fees, and criminal and civil prosecution will be waived for delinquent
taxpayers who take advantage of the amnesty opportunity.
Collections
estimates for the program range from $65 million to $103 million.
“Indiana is one of a very
few states that has never used this tool, and as we move to balance our budget
after a decade of red ink, it makes good sense to do so,” said the
governor. “Delinquents need to understand they get this one chance to pay
up, or face double penalties and aggressive enforcement.”
The
state is owed taxes from individuals and businesses in every county in Indiana and from
residents and businesses in nearly every other state in the country.
Amnesty
is available for taxpayers who did not file required Indiana tax returns, have under-reported tax
liability, claimed excessive deductions, or did not pay previously assessed
taxes, interest, penalties or collection fees for tax periods ending before
July 1, 2004.
Eligible
taxpayers who do not participate in the tax amnesty program will be subject to
double the penalty in addition to applicable interest, fees and penalties.
The
Department of Revenue will roll out the complete tax amnesty program in the
coming weeks. Details will be posted on the Indiana Department of Revenue Web
site at www.in.gov/dor/.
The
bill’s author is Rep. Eric Turner, R-Marion, with co-authors Rep. Richard
McClain, R-Logansport; Rep. Luke Messer, R-Shelbyville, and Rep. Peggy Welch,
D-Bloomington. The Senate sponsor was Sen. Luke Kenley,
R-Noblesville, and the co-sponsor was Sen. Murray Clark, R-Indianapolis.
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Office of the Governor media contact: Jane Jankowski, 317/232-1622; jjankowski@gov.in.gov