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Indiana Code — Title 6 (Taxation)

IC 6-8.1-10-1

Liability for interest

Official textiga.in.govlast amended

Sec. 1. (a) If a person fails to file a return for any of the listed taxes, fails to pay the full amount of tax shown on the person's return by the due date for the return or the payment, or incurs a deficiency upon a determination by the department, the person is subject to interest on the nonpayment.

(b) The interest for a failure described in subsection (a) is the adjusted rate established by the commissioner under subsection (c), from the due date for payment. The interest applies to:

# (1)

the full amount of the unpaid tax due if the person failed to file the return;

# (2)

the amount of the tax that is not paid, if the person filed the return but failed to pay the full amount of tax shown on the return; or

# (3)

the amount of the deficiency.

(c) The commissioner shall establish an adjusted rate of interest for a failure described in subsection (a) and for an excess tax payment on or before November 1 of each year. For purposes of subsection (b), the adjusted rate of interest shall be the percentage rounded to the nearest whole number that equals two (2) percentage points above the average investment yield on state general fund money for the state's previous fiscal year, excluding pension fund investments, as determined by the treasurer of state on or before October 1 of each year and reported to the commissioner. For purposes of IC 6-8.1-9-2(c), the adjusted rate of interest for an excess tax payment must be the same as the adjusted rate of interest determined under this subsection for a failure described in subsection (a). The adjusted rates of interest established under this subsection shall take effect on January 1 of the immediately succeeding year.

(d) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return.

(e) Except as provided by IC 6-8.1-3-17(d), IC 6-8.1-3-17(f), IC 6-8.1-5-2, and section 2.1(k) of this chapter, the department may not waive the interest imposed under this section.

(f) Subsections (a) through (c) do not apply to a motor carrier fuel tax return.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.60-1990, SEC.13; P.L.48-1994, SEC.3; P.L.2-1995, SEC.36; P.L.2-2005, SEC.23; P.L.236-2005, SEC.2; P.L.1-2006, SEC.147; P.L.211-2007, SEC.43; P.L.113-2014, SEC.13; P.L.214-2018(ss), SEC.14;
P.L.234-2019, SEC.36; P.L.1-2025, SEC.105.

Amendment history

As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.60-1990, SEC.13; P.L.48-1994, SEC.3; P.L.2-1995, SEC.36; P.L.2-2005, SEC.23; P.L.236-2005, SEC.2; P.L.1-2006, SEC.147; P.L.211-2007, SEC.43; P.L.113-2014, SEC.13; P.L.214-2018(ss), SEC.14; P.L.234-2019, SEC.36; P.L.1-2025, SEC.105.

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Nearby sections (25 sections)
  1. 6-8.1-9.5-12 · Order of priority in multiple claims to refunds
  2. 6-8.1-9.5-13 · Disclosure of information and records; taxpayers; child
  3. 6-8.1-9.7-1 · "Debt"
  4. 6-8.1-9.7-2 · "Federal official"
  5. 6-8.1-9.7-3 · "Offset agreement"
  6. 6-8.1-9.7-4 · "Person"
  7. 6-8.1-9.7-5 · "State payments"
  8. 6-8.1-9.7-6 · "Tax refund"
  9. 6-8.1-9.7-7 · Authorization to enter into an offset agreement
  10. 6-8.1-9.7-8 · Powers of a federal official under an offset agreement
  11. 6-8.1-9.7-9 · Duties and powers of the office of management and budget
  12. 6-8.1-9.7-10 · Authorization to establish a reasonable administrative…
  13. 6-8.1-10-1 · Liability for interest
  14. 6-8.1-10-2 · Repealed
  15. 6-8.1-10-2.1 · Liability for penalty; reasonable cause presumption
  16. 6-8.1-10-3 · Failure to file return; preparation by department; penalty
  17. 6-8.1-10-3.5 · Failure to file return; penalty for past due returns
  18. 6-8.1-10-4 · Failure to file return; fraudulent intent to evade tax;…
  19. 6-8.1-10-5 · Faulty payment; penalty; required use of guaranteed funds
  20. 6-8.1-10-6 · Failure to file information return; penalty; exceptions
  21. 6-8.1-10-7 · Maximum and minimum penalties
  22. 6-8.1-10-8 · Repealed
  23. 6-8.1-10-9 · Dissolution, liquidation, or withdrawal of corporation;
  24. 6-8.1-10-9.5 · Successor liability for certain unpaid taxes; notice;…
  25. 6-8.1-10-11 · Repealed
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