Tax administration, collection, and enforcement; motor vehicle excise tax; commercial vehicle excise taxes
Sec. 1. (a) The department has the primary responsibility for the administration, collection, and enforcement of the listed taxes. In carrying out that responsibility, the department may exercise all the powers conferred on it under this article in respect to any of those taxes.
(b) In the case of the motor vehicle excise tax, the department has the responsibility to act only in the investigation, assessment, collection, and enforcement of the tax in instances of delinquency or evasion. Primary responsibility for the administration and collection of the tax remains with the agencies named in IC 6-6-5.
(c) In the case of commercial vehicle excise taxes that are payable to the bureau of motor vehicles and are not subject to apportionment under the International Registration Plan, the department has the responsibility to act only in the investigation, assessment, collection, and enforcement of the tax in instances of delinquency or evasion. Primary responsibility for the administration and collection of the tax remains with the bureau of motor vehicles.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.335-1989(ss), SEC.18; P.L.24-1992, SEC.57; P.L.181-1999, SEC.4; P.L.91-2006, SEC.9.
Employees; hiring; compensation; conflict of interest
Sec. 2. (a) The commissioner, with the governor's approval, may employ such individuals as are necessary to perform the various functions of the department.
(b) The commissioner and the budget agency shall set the compensation for the department's employees.
(c) Before January 1, 1983, an employee of the department may not perform any activity, outside the department, involving the representation of another person at an audit by the department.
(d) After December 31, 1982, an employee of the department may not perform any activity, outside the department, involving the representation of another person for compensation, if that activity could conflict with his departmental job. An employee may not prepare state or federal tax returns for compensation and he may not perform accounting or legal services for compensation, if those services or the results of those services pertain to or are used in the preparation of a state or federal tax return.
(e) For a period of two (2) years after the termination of his employment with the department, a former employee may not act in any capacity for a person (other than the department, another state agency, or the federal government) in a matter that was pending in the department during the period of the former employee's
As added by Acts 1980, P.L.61, SEC.1.
Unauthorized investigations or surveillance
Sec. 2.2. (a) This section does not:
(1) apply to an otherwise lawful investigation concerning organized crime activities; or
(2) prohibit, restrict, or prevent the exchange of information if a person is being investigated for multiple violations of IC 6-2.5 (state gross retail and use taxes).
(b) As used in this section, "investigation" means an oral or written inquiry directed to a person, organization, or governmental entity.
(c) As used in this section, "surveillance" means the monitoring of a person, place, or event by:
(1) electronic interception;
(2) overt or covert observations;
(3) photography; or
(4) the use of informants.
(d) The commissioner or an employee of the department may not knowingly authorize, require, or conduct:
(1) an investigation; or
(2) a surveillance;
unless the purpose of the investigation or surveillance is reasonably related to the administration of a listed tax.
As added by P.L.332-1989(ss), SEC.21. Amended by P.L.100-2012, SEC.20.
Employee evaluations based on revenue collected or tax liability assessed
Sec. 2.5. The department may not include the amount of revenue collected or tax liability assessed in the evaluation of an employee.
As added by P.L.332-1989(ss), SEC.22. Amended by P.L.211-2007, SEC.40.
Certification of compliance with employee evaluation criteria
Sec. 2.6. The commissioner shall certify in the report submitted under IC 6-8.1-14-3 that the department is in compliance with section 2.5 of this chapter.
As added by P.L.332-1989(ss), SEC.23.
Removal of expired rules
Sec. 3. (a) The department shall adopt, under IC 4-22-2, rules governing:
(1) the administration, collection, and enforcement of the listed taxes;
Guidelines available for public inspection and copying; letters of findings; removal of information
Sec. 3.5. (a) Subject to subsection (b), the department shall publish in the Indiana Register under IC 4-22-7-7 and make available for public inspection and copying under IC 5-14-3 information bulletins, revenue rulings (including, after complying with subsections (b) through (e), letters of findings), and other guidelines that:
(1) are issued by the department; and
(2) concern a listed tax.
(b) When the department issues a letter of findings, the department shall provide a copy of the letter of findings to the taxpayer to which the letter of findings pertains. The department shall notify the taxpayer of the taxpayer's right to delete information described under subsection (c).
(c) Not more than thirty (30) days after a taxpayer receives a letter of findings under subsection (b), the taxpayer to which the letter of findings pertains may request in writing that the department remove any of the following information that is contained in the letter of findings:
(1) A name, address, or other identifying detail of:
(A) the business or other person to whom the written determination pertains; or
(B) any other business or other person identified in the written determination or a background file document.
(2) A trade secret or other commercial or financial information obtained from a business or other person that is privileged or confidential.
(3) Information, the disclosure of which would constitute an unwarranted invasion of personal privacy.
Forms; electronic format
Sec. 4. The department has the sole authority to furnish forms used in the administration and collection of the listed taxes, including reporting of information in an electronic format.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.36-1984, SEC.2; P.L.182-2009(ss), SEC.248.
Signature on documents
Sec. 5. All notices, summons, warrants, waivers, demands, or other documents requiring an authorizing signature by the department must be signed by the commissioner or his designee; and when that document is signed it is an official department document.
As added by Acts 1980, P.L.61, SEC.1.
Reciprocal information agreements; cooperation of other agencies; submission of required electronic file of information
Sec. 7. (a) The department may enter into reciprocal agreements with the taxing officials of the United States government or with the taxing officials of other state governments to furnish and receive information relevant to the administration and enforcement of the listed taxes. However, the department may not furnish information obtained from federal returns or schedules to officials of other state governments.
(b) All agencies of the state of Indiana shall cooperate with the department in the administration of the listed taxes and shall, upon request and at no charge to the department, furnish to the department any information relevant to the administration and collection of the listed taxes that the department requests. In addition, a state agency that encounters the use of a fraudulent identity shall notify the department and provide in electronic format identifying information as specified by the department for the department's use in preventing tax fraud. If a state agency encounters the use of fraudulent identities on a regular basis, the state agency shall provide to the department a monthly electronic report furnishing the identifying information specified by the department.
(c) Before December 1 each year:
(1) the department of correction shall provide to the department an electronic file listing the name and Social Security number of each individual under the jurisdiction of the department of correction as of November 1 of that year; and
(2) the state department of health shall provide to the department an electronic file listing the name of each individual for whom an Indiana death certificate was issued during the immediately preceding twelve (12) months.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.197-2013, SEC.2.
Department agreement to provide information to fiscal officer; electronic format; information may not be disclosed
Sec. 7.1. (a) "Fiscal officer" has the meaning set forth in IC 36-1-2-7.
(b) The department shall enter into an agreement with the fiscal officer of an entity that has adopted an innkeeper's tax, a food and
beverage tax, or an admissions tax under IC 6-9 to furnish the fiscal
officer annually with:
(1) the name of each business collecting the taxes listed in this subsection; and
(2) the amount of money collected from each business.
(c) The agreement must provide that the department must provide the information in an electronic format that the fiscal officer can use, as well as a paper copy.
(d) The agreement must include a provision that, unless in accordance with a judicial order, the fiscal officer, employees of the fiscal officer, former employees of the fiscal officer, counsel of the fiscal officer, agents of the fiscal officer, or any other person may not divulge the names of the businesses, the amount of taxes paid by the businesses, or any other information disclosed to the fiscal officer by the department.
As added by P.L.178-2002, SEC.72.
Representation of taxpayers before department; qualifications; requirements
Sec. 8. The department may prescribe qualifications a person must have to represent a taxpayer before the department. However, a person may not represent a taxpayer before the department, unless:
(1) the taxpayer is present at all times when the representation occurs; or
(2) the person representing the taxpayer has a properly executed power of attorney authorizing him to represent the taxpayer.
As added by Acts 1980, P.L.61, SEC.1.
Sec. 8.5. (a) This section applies to a hearing conducted by the department under this article.
(b) A hearing shall be conducted at a time and a location that is reasonable and convenient to the taxpayer whenever possible.
(c) The department shall notify the taxpayer before the hearing that the taxpayer is entitled to:
(1) have a representative qualified under section 8 of this chapter present at the hearing; and
(2) record the hearing.
(d) The department may not record a hearing unless the department notifies the taxpayer before the hearing begins that the department:
(1) intends to record the hearing; and
(2) will provide a copy of the recording to the taxpayer.
As added by P.L.332-1989(ss), SEC.24.
Sec. 9. The state of Indiana shall provide suitable office space in
Marion County, where the department shall maintain its primary
offices. The department may rent, lease, or otherwise acquire
additional office space at locations outside Marion County, if the
department feels that efficiency or economy is best served by
locating branch offices at those locations. However, an agreement
securing office space for a branch office may not extend for a time
of more than ten (10) years.
As added by Acts 1980, P.L.61, SEC.1.
Contracts for services
Sec. 10. (a) The department may enter into contracts with persons outside the department to provide services that the department feels are necessary to properly administer and collect the listed taxes.
(b) A contract entered into under this section must require the person providing the service to comply with the requirements governing the administration and collection of taxes by the department.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.332-1989(ss), SEC.25.
Mailing of documents
Sec. 11. (a) As used in this section, "secure electronic delivery service" means a service that:
(1) employs security procedures to provide, send, deliver, or otherwise communicate electronic records to the intended recipient using:
(A) security methods such as passwords, encryption, and matching electronic addresses to United States postal addresses; or
(B) other security methods that are consistent with applicable law or industry standards; and
(2) operates subject to the applicable requirements of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 et seq.) or IC 5-24.
(b) When a statute specifies that the department is required to send a document by mail, and the particular statute is silent as to the class or type of mailing to be used, the department satisfies the mailing requirement by mailing the document through any of the following methods:
(1) United States first-class mail;
(2) United States registered mail, return receipt requested;
(3) United States certified mail;
(4) a certificate of mailing; or
(5) a secure electronic delivery service, if the use of the secure electronic delivery service is authorized under IC 6-8.1-6-7(b).
Subject to IC 6-8.1-6-7(b), the choice of the method is at the department's discretion.
(c) The department may use any form of mailing in cases where
a mailing is not required by statute.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.293-2013(ts), SEC.27.
Powers; department; county treasurer; audits; appraisals; investigations; statistical sampling
Sec. 12. (a) The department may audit any returns filed in respect to the listed taxes, may appraise property if the property's value relates to the administration or enforcement of the listed taxes, may audit gasoline distributors for financial responsibility, and may investigate any matters relating to the listed taxes.
(b) The department may audit any returns with respect to the listed taxes using statistical sampling. If the taxpayer and the department agree to a sampling method to be used, the sampling method is binding on the taxpayer and the department in determining the total amount of additional tax due or amounts to be refunded.
(c) For purposes of conducting its audit or investigative functions, the department may:
(1) subpoena the production of evidence;
(2) subpoena witnesses; and
(3) question witnesses under oath.
The department may serve its subpoenas, or it may order the sheriff of the county in which the witness or evidence is located to serve the subpoenas.
(d) The department may enforce its audit and investigatory powers by petitioning for a court order in any court of competent jurisdiction located in the county where the tax is due or in the county in which the evidence or witness is located. If the evidence or witness is not located in Indiana or if the department does not know the location of the evidence or witness, the department may file the petition in a court of competent jurisdiction in Marion County. The petition to the court must state the evidence or testimony subpoenaed and must allege that the subpoena was served but that the person did not comply with the terms of that subpoena.
(e) Upon receiving a proper petition under subsection (d), the court shall promptly issue an order which:
(1) sets a hearing on the petition on a date not more than ten (10) days after the date of the order; and
(2) orders the person to appear at the hearing prepared to produce the subpoenaed evidence and give the subpoenaed testimony.
If the defendant is unable to show good cause for not producing the evidence or giving the testimony, the court shall order the defendant to comply with the subpoena.
(f) If the defendant fails to obey the court order, the court may punish the defendant for contempt.
(g) Officers serving subpoenas or court orders and witnesses appearing in court are entitled to the normal compensation provided by law in civil cases. The department shall pay the compensation
costs from the money appropriated for the administration of the listed
(h) County treasurers investigating tax matters under IC 6-9 have:
(1) concurrent jurisdiction with the department;
(2) the audit, investigatory, appraisal, and enforcement powers described in this section; and
(3) authority to recover court costs, fees, and other expenses related to an audit, investigatory, appraisal, or enforcement action under this section.
As added by Acts 1980, P.L.61, SEC.1. Amended by P.L.71-1993, SEC.16; P.L.254-2003, SEC.9; P.L.182-2009(ss), SEC.249.
Criminal prosecutions; civil actions
Sec. 13. (a) The attorney general and the respective county prosecuting attorneys have concurrent jurisdiction in conducting criminal prosecutions of tax matters. Either the attorney general or the respective prosecuting attorney may initiate criminal tax proceedings, and appear before grand juries to report violations, give legal advice, or interrogate witnesses.
(b) Upon request by the department, the attorney general shall prosecute a civil action to collect unpaid taxes, penalties, and interest and to enforce the department's powers.
As added by Acts 1980, P.L.61, SEC.1.
Motor fuel taxes; apportionment on allocation basis; reciprocal agreements; International Fuel Tax Agreement
Sec. 14. (a) The department, on behalf of the state, may enter into and become a member of the International Fuel Tax Agreement or other reciprocal agreements providing for the imposition of motor fuel taxes on an apportionment or allocation basis with the proper authority of any state, any commonwealth, the District of Columbia, a state or province of a foreign country, or a territory or possession of either the United States or of a foreign country.
(b) The department may adopt rules under IC 4-22-2 to carry out and enforce the provisions of the International Fuel Tax Agreement or any other agreement entered into under this section.
(c) If the department enters into the International Fuel Tax Agreement or into any other agreement under this chapter, and if the provisions set forth in that agreement or other agreements:
(1) are different from provisions prescribed by an Indiana statute, then the provisions of the Indiana statute prevail; and
(2) are different from provisions prescribed by the Indiana Administrative Code, then the provisions of the agreement prevail.
This subsection does not affect the operation of IC 6-6-4.1-22, IC 6-6-4.1-23, IC 6-6-4.1-24, IC 6-6-4.1-25, or IC 6-6-4.1-26.
(d) This section constitutes complete authority for the imposition of motor fuel taxes upon an apportionment or allocation basis
without reference to or application of any other statutes of this state.
As added by P.L.106-1987, SEC.1. Amended by P.L.129-2001, SEC.20.
Report; uncollectible delinquent tax liabilities
Sec. 15. Before February 1 of each year, the department shall submit to the general assembly the age and amount of delinquent tax liabilities that the department determines to be uncollectible.
As added by P.L.6-1987, SEC.10.
Outstanding tax warrants; list; tax releases; motor vehicle title tax liens; tax collector fees; sheriffs; Internet publication of list of persons with revoked or nonrenewed retail merchant certificates
Sec. 16. (a) The department shall prepare a list of all outstanding tax warrants for listed taxes each month. The list shall identify each taxpayer liable for a warrant by name, address, amount of tax, and either Social Security number or employer identification number. Unless the department renews the warrant, the department shall exclude from the list a warrant issued more than ten (10) years before the date of the list. The department shall certify a copy of the list to the bureau of motor vehicles.
(b) The department shall prescribe and furnish tax release forms for use by tax collecting officials. A tax collecting official who collects taxes in satisfaction of an outstanding warrant shall issue to the taxpayers named on the warrant a tax release stating that the tax has been paid. The department may also issue a tax release:
(1) to a taxpayer who has made arrangements satisfactory to the department for the payment of the tax; or
(2) by action of the commissioner under IC 6-8.1-8-2(k).
(c) The department may not issue or renew:
(1) a certificate under IC 6-2.5-8;
(2) a license under IC 6-6-1.1 or IC 6-6-2.5; or
(3) a permit under IC 6-6-4.1;
to a taxpayer whose name appears on the most recent monthly warrant list, unless that taxpayer pays the tax, makes arrangements satisfactory to the department for the payment of the tax, or a release is issued under IC 6-8.1-8-2(k).
(d) The bureau of motor vehicles shall, before issuing the title to a motor vehicle under IC 9-17, determine whether the purchaser's or assignee's name is on the most recent monthly warrant list. If the purchaser's or assignee's name is on the list, the bureau shall enter as a lien on the title the name of the state as the lienholder unless the bureau has received notice from the commissioner under IC 6-8.1-8-2(k). The tax lien on the title:
(1) is subordinate to a perfected security interest (as defined and perfected in accordance with IC 26-1-9.1); and
(2) shall otherwise be treated in the same manner as other title liens.
(Repealed by P.L.91-2006, SEC.15.)
Voter registration form to be included with income tax booklet
Sec. 19. The department shall print and include a voter registration form designed by the Indiana election commission under IC 3-7-23 in each state adjusted gross income tax booklet that is mailed to a taxpayer using a preprinted mailing label with an Indiana address.
As added by P.L.12-1995, SEC.98. Amended by P.L.2-1996, SEC.219.
Duty to enter a memorandum of understanding with the Indiana gaming commission
Sec. 20. (a) The department shall enter a memorandum of understanding with the Indiana gaming commission authorizing the commission's unlawful gaming enforcement division to conduct actions to revoke retail merchant certificates under IC 6-2.5-8-7(g) in the manner specified in the memorandum of understanding.
(b) A memorandum of understanding entered into under this
section must comply with the requirements of IC 4-33-19-8.
(c) The memorandum of understanding required by this section must be entered into before January 1, 2008.
As added by P.L.227-2007, SEC.59.
Indiana to become member of Multistate Tax Commission; cost of membership
Sec. 21. (a) As used in this section, "associate member" has the meaning set forth in bylaw 13(c) of the bylaws of the Multistate Tax Commission, as amended through October 17, 2002.
(b) As used in this section, "biennium" means a period consisting of two (2) consecutive state fiscal years beginning on July 1 of an odd-numbered year.
(c) The governor and the commissioner shall take the steps necessary for Indiana to become an associate member of the Multistate Tax Commission (444 North Capitol Street, NW, Suite 425, Washington, DC 20001).
(d) For a biennium beginning after January 1, 2009, the department shall make a separate request for the cost of membership in the Multistate Tax Commission as part of the department's biennial budget request.
As added by P.L.16-2009, SEC.14.
Information sharing concerning construction workers misclassified as independent contractors
Sec. 21.2. (a) This section applies after December 31, 2009.
(b) As used in this section, "contractor" means:
(1) a sole proprietor;
(2) a partnership;
(3) a firm;
(4) a corporation;
(5) a limited liability company;
(6) an association; or
(7) another legal entity;
that engages in construction and is authorized by law to do business in Indiana. The term includes a general contractor, a subcontractor, and a lower tiered contractor. The term does not include the state, the federal government, or a political subdivision.
(c) The department shall cooperate with the:
(1) department of labor created by IC 22-1-1-1;
(2) worker's compensation board of Indiana created by IC 22-3-1-1(a); and
(3) department of workforce development established by IC 22-4.1-2-1;
by sharing information concerning any suspected improper classification by a contractor of an individual as an independent contractor (as defined in IC 22-3-6-1(b)(7) or IC 22-3-7-9(b)(5)).
(d) For purposes of IC 5-14-3-4, information shared under this
section is confidential, may not be published, and is not open to
(e) An officer or employee of the department who knowingly or intentionally discloses information that is confidential under this section commits a Class A misdemeanor.
As added by P.L.164-2009, SEC.1.