What do you do if you owe taxes?

April 11, 2016

The individual income tax filing deadline is almost here. Are you finding it difficult to pay your taxes? We’ve got helpful suggestions.

Be proactive – make sure to file your tax return by April 18 even if you can’t pay the tax due. Filing your tax return keeps you on the right track.

If you are able to pay your taxes in full and would like to do so online, check out the Department of Revenue’s electronic tax payment service, ePay. Convenient and easy to use, ePay allows individuals to pay taxes owed to the department 24 hours a day, 7 days a week, and you can make your payment with Visa, MasterCard, Discover, or e-check.

ePay allows you to select your filing type, view your payment history, check your payment status, and schedule and manage payments.

However, if you can’t pay the full amount due, you’ve got options.

  • Pay as much as you can when you file the tax return. Penalty and interest will be due on the unpaid amount, so paying more when you file reduces your penalty and interest due. Within a few weeks, a bill will be sent to collect the remaining amount due.
  • If you’re unable to pay any amount, go ahead and file the tax return with no payment. Within a few weeks, a bill will be sent for the tax, plus penalty and interest on the full amount due.

If you can’t pay the full amount due when the bill arrives, you may be eligible for a payment plan. Eligibility is based on the amount of tax due. If eligible, a payment plan can be established through INtax Pay, an online program offered by the department.

Generally, the minimum amount of tax due to establish a payment plan through INtax is $100, with 20 percent down.

  • If you owe less than $100 and would like to establish a payment plan, you must call 317-232-2165.
  • If you owe between $100 and $500, you may establish a payment plan for up to 12 months.
  • If you owe more than $500, you may establish a payment plan for a longer period of time, but not more than 24 months.

After you get the bill, you can set up the plan online or contact the department with your request. Once the plan is approved; you can mail payments or pay online through INtax Pay.

If you’d like to learn more about ePay, visit our website. If you’d like to check your eligibility for setting up a payment plan through INtax Pay, check here.