Indiana Tax Relief

Indiana, not unlike most states, is having an increasingly difficult time operating given the budgetary effects of the current economic downturn.  Indiana taxpayers are finding they are unable to pay their tax bills in a timely manner and are facing the possibility of a crackdown by the Indiana Department of Revenue.  The Department of Revenue commonly uses wage garnishment and other severe measures to encourage taxpayers to pay up. Many Indiana residents are fearful that the Department of Revenue will target them and are unsure about their options for tax debt relief and tax help.

Indiana lawmakers have attempted to ease some of the pain.  For instance, Senator Evan Bayh in June, 2009 proposed legislation that would expand and make permanent federal property tax relief for more than 900,000 Hoosier homeowners who do not itemize their federal tax deductions.  Indiana also has a voluntary compliance program that waives civil penalties except for "trust fund" taxes (such as sales tax, use tax, and withholding tax), waives filing requirements for a 3-year look back, and waives audits prior to the 3-year look back period.  Any taxpayer can take advantage of this program, but it must be before the Indianan Department of Revenue contacts you. And you must still fully pay your taxes and all applicable interest due.

Although these programs have been helpful to some, many people are buried under their tax burden and can’t afford to pay their entire tax debt.  If you are in need of tax relief, don’t wait to take action.  There are a number of opportunities to reduce or defer the amount you owe to the IRS, including tax penalty abatement, compromises, installment agreements and appeals.  Please click here for a free tax debt consultation with a tax professional serving Indiana residents.