Window For Indiana's 2015 Tax Amnesty Closes Monday

Last updated on Friday, November 13, 2015

(UNDATED) - The window for tax forgiveness will close just before midnight on Monday as Indiana’s 2015 Tax Amnesty program concludes.

The state's program is aimed at providing the opportunity for individuals and businesses to pay past-due taxes without penalty, interest or collection fees..

Those taxpayers looking to participate in the program must pay in full or establish a payment plan by Monday, Nov. 16, at 11:59 p.m.

The Good:

All penalties will be waived
All interest assessed will be waived
No additional interest
All collection fees will be waived
All liens will be lifted

The Bad:

If you participated in the 2005 Amnesty Program you are ineligible
The payment plan established under the program must be completed by June 15, 2016.
Failure to complete the payoff by June 15, 2016 will result in doubling of penalties
Failure to complete the payoff by June 15, 2016 will result in return to pre-amnesty collection status (all warrants return, liens reinstated, etc.)
If you are eligible and choose not to participate, your existing penalties will double on November 17, 2015

The Indianapolis Star reports, about 260,000 corporations, small businesses and individuals who owe the state more than $500 million are eligible for the amnesty program. A student loan management firm, Navient Corp., is helping the state collect some of that outstanding tax debt.

Any money collected beyond the $90 million goal will go to Indiana's general fund.

Indiana's last tax amnesty offer was in 2005, when the state collected $244 million of about $1.3 billion in unpaid taxes.

This year's tax amnesty is the sole funding for the state's new $84 million Regional Cities program. Another $6 million expected to be generated by the amnesty offer will support Amtrak's Hoosier State rail line that runs between Indianapolis and Chicago.

The Regional Cities program -- a top legislative priority of Pence that state lawmakers approved in April -- will award grants to regional groups for infrastructure or amenity projects aimed at attracting businesses and people to those areas.

A committee that's part of the Indiana Economic Development Corp. is tentatively scheduled to meet Dec. 15 to decide which two of seven proposals will each receive $42 million grants, says agency spokeswoman Rebecca Helmke.

Under the program, the state money would be used to obtain matching federal funds and be supplemented by public and private local revenues.

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