July 2005 "2005 Indiana Tax Amnesty Program Begins Soon"

PLANNING FOR WEALTH & SECURITY
By Attorneys Jennifer & Jeff Hawkins

2005 INDIANA TAX AMNESTY PROGRAM BEGINS SOON

The Indiana Department of Revenue has announced its 2005 Tax Amnesty program. The following text appears on the Indiana Department of Revenue website at http://www.in.gov/dor/amnesty/faq.html

Tax amnesty (amnesty) is a limited-time opportunity for individuals and businesses to pay past-due listed taxes free of penalty, interest and collection fees without fear of criminal or civil prosecution. It runs from September 15 through November 15, 2005. Taxpayers who are eligible to participate in amnesty but choose not to do so will be subject to a penalty that is double the originally assessed penalty.

A signed agreement coupon must accompany your amnesty payment.

The Department will mail a detailed amnesty packet to all known eligible taxpayers.
Taxpayers coming forward for the first time will need to email or call for instructions.

If you don’t file for amnesty within the September 15 through November 15, 2005, time period, the additional amnesty-related penalty (in addition to penalty, interest and possible collection fees) will be assessed against all of your unpaid tax due for tax periods ending before July 1, 2004.

The program covers any tax periods ending before July 1, 2004, for which:
1. you have an outstanding obligation;
2. you have not filed a return; or
3. you have underreported your tax liability.

If you meet the requirements and pay the full base tax due, the Department will cancel penalty, interest and collection fees associated with those tax periods. In addition, the Department will agree not to criminally or civilly prosecute you for those tax periods.

Even if you don’t participate in the tax amnesty program, the additional penalty won’t be imposed if you:
1. have a pre-existing payment plan with the Department as of May 12, 2005;
2. have a legitimate hold on a liability as a result of an audit, bankruptcy, protest, or taxpayer advocate action as of May 12, 2005;
3. have a timely filed original tax appeal in the Tax Court; or
4. can satisfactorily prove that notice of an outstanding tax bill was not received.

Amnesty is available to both individuals and businesses who owe taxes for tax periods ending before July 1, 2004, if they:
1. did not file the required Indiana tax return(s);
2. underreported income and/or tax due on a previously filed tax return(s);
3. claimed excessive deductions; and/or
4. did not pay previously assessed taxes, interest, penalties, and/or or collection fees.

If you are not registered with the Department to pay taxes, but you know you owe taxes, you are eligible for the tax amnesty program if the taxes are due for tax periods ending before July 1, 2004. You’ll need to register with the Department by completing the online amnesty registration for an individual or a new business.

Complete and return a signed amnesty agreement with the required payment between September 15 and November 15, 2005.

File any missing returns for those tax periods for which you applied for amnesty.

File amended returns within 60 days of signing the agreement for any tax periods in which you underreported your tax liability.

You must request permission from the Department by November 15, 2005, to establish an amnesty payment plan.

The Department is sending pre-printed tax amnesty agreements to taxpayers who have existing billings for tax periods ending before July 1, 2004. These agreements are being mailed to the taxpayer's last known address. If you need one, contact the Department by e-mail at at This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or by telephone at 1-317-232-8039.

THIS ARTICLE IS NOT LEGAL ADVICE. ALWAYS CONSULT AN ATTORNEY DIRECTLY BEFORE RELYING UPON THIS ARTICLE OR CHANGING AN ESTATE PLAN.