INDIANAPOLIS -- Those delinquent on Indiana taxes take note: The state will start a 60-day grace period beginning next week that will allow you to pay up without penalties, interest or collection fees.\nBut Department of Revenue officials are warning those who do not come clean between Sept. 15 and Nov. 15 that they will face double penalties and more aggressive collection efforts. And there are no plans for another amnesty period in the future.\n"It was enacted as a one-time event not to be repeated," Revenue Commissioner John Eckart said Wednesday.\nMore than $1.3 billion in taxes are currently unpaid in Indiana, according to the agency. Estimates of how much Indiana might collect have varied, but the Legislative Services Agency says there are no data to indicate how much the state might get.\nHowever, lawmakers who approved the program Gov. Mitch Daniels proposed are banking on at least $65 million, an amount they included as expected revenue in the two-year budget passed in April.\nIndiana is one of only seven states that has never offered a tax amnesty period.\nIllinois offered a six-week amnesty program in 2003 that had been estimated to generate about $40 million that otherwise might never have been collected or would not be taken in for a year or more. The state ended up getting $175 million in that category. It also sped up payments of $329 million that normally would have occurred later in the fiscal year.\nIndiana's program applies to individuals and businesses who owe back taxes during periods ending before July 1, 2004. That includes those who did not file state tax returns, underreported income on taxes due, claimed excessive deductions, or did not pay previously assessed taxes, interest, penalties or \ncollection fees.\nThose who cannot pay the total amount owed by Nov. 15 may be able to set up an extended payment plan, with all back taxes then due June 15, 2006. Only those who owe more than $500 can take part in the extended plan.\nThe state began advertising the grace period Sept. 1 through newspaper ads and television and radio commercials -- a $1.5 million campaign that will continue until the program ends.\nIt also began sending out notices to about 200,000 known delinquent taxpayers Wednesday. The notices include the taxes and penalties and interest they owed, what they would pay under amnesty, and the additional penalties they would face if they fail to take advantage of the program.\nThe agency said the average delinquent taxpayer owes more than $13,000 in back taxes and penalties, interest or other fees.
\nAlmost half of that amount is in various penalties. During the amnesty period, that taxpayer would pay about $6,900. But if the person or business did not pay the base taxes owed by Nov. 15, the $13,000 bill would increase by $2,300.\nEckhart said that after Nov. 15, the state will be more aggressive in trying to collect from delinquent taxpayers. \nThe agency will use more collection agencies, among other things.
\nThe agency began preparing the program in March, and contacted other states to determine what aspects of their programs worked well and which did not.\nJim Poe, deputy commissioner of the Department of Revenue, said states were busy taking in back taxes during the start of their amnesty periods.
"Then it kind of slacked off, and like when people pay taxes they wait until Apr. 15," Poe said. "So all the states saw a huge amount of income in the last week of the amnesty"
