The Collection Process
Occasionally it is necessary for the Department to issue bills for unpaid taxes. If your account falls into the collection process, it is important to understand each billing stage and its deadline. For more information call (317) 232-2165.
Stages of Collection
The stages of collection are:
Please click the appropriate link above for further important information related to each stage. The "demand notice for payment" link includes information about possible remedies to address the demand before it becomes a warrant for collection of tax.
The department accepts several forms of payment.
|Form of Payment||Pay Online||Pay by Phone|
|American Express||www.officialpayments.com||(866) 729-4682|
|Electronic check||https://dorpay.dor.in.gov/||Not Available|
A service fee of $1 is applied for electronic check payments, and a convenience fee based on the payment amount applies to all electronic payments.
You will need a copy of your bill with your case number, tax identification (TID) and/or liability number. You will also need your credit card information and the amount you wish to pay.
To pay you will need:
- A copy of your bill with your case number
- Tax identification (TID) and/or liability number
- Credit card information and payment amount
Indiana Department of Revenue
P.O. Box 595
Indianapolis, IN 46206-0595
For current balance due on any individual or business tax liability, call the automated information line at (317) 233-4018, Monday through Saturday 7 a.m. to 10 p.m.
You will need to have your taxpayer identification number or Social Security number and the liability number or warrant number. This information is available from any of the previous notices that you have received.
Bad check/payment policy is addressed in (IC 6-8.1-10-5).
Set Up a Payment Plan
The Department of Revenue has an online tool called INtax Pay that allows taxpayers to pay their bills in full. Most taxpayers can also set up a payment arrangement in INtax.
Taxpayers who owe $100 or more can use the online tool. However, taxpayers who use the online tool must pay ten percent down toward their total tax debt. In addition, they will still incur the ten percent penalty and will accrue interest until the tax debt is paid in full.
Anyone who owes is strongly encouraged to pay their bill in full to avoid further penalty and interest.
Payment plans can be set for 12 and 24-month increments, depending on the amount of the tax bill. Hoosiers wishing to take advantage of this option can find out if they are eligible by accessing the INTax system.
For more information about setting up a payment plan with the Department (317) 232-2165.
There are exceptions for the amount of the penalty for specific tax types. If you have additional questions on the exceptions for penalties please call (317) 615-7200.
The Appeal Process
You may protest a Proposed Assessment Bill by sending a written request and a copy of the bill to the Department within 60 days of the bill date. The protest request letter should detail the reason for your protest and be signed and dated.
To protest only the penalty, use the same process. The protest letter should also include the specific reason for protesting only the penalty.
You may represent yourself or choose someone else you feel is qualified. The Department must have a completed power of attorney form to discuss your account with anyone other than you. You can use the Power of Attorney (POA-1) form or the Internal Revenue Service form at http://www.irs.gov/ If you use the IRS form, the appropriate state information must be provided.
If you are unable to resolve the protest after initially contacting the Department, you may request a hearing by writing to the department’s legal division at:
Indiana Department of Revenue
P.O. Box 1104
Indianapolis, IN 46206-1104
The protest will not be settled at the hearing. Within 60 days of the hearing the Department will issue a decision in a Letter of Findings. If, during the hearing, you find that you need additional time to gather facts, we may continue the hearing until all the facts can be supplied.
Appeals to the Tax Court
If you disagree with the result of the Letter of Findings, you may appeal to the Indiana Tax Court within 60 days. You may either:
- Request the court to prevent the Department from collecting the tax. However, interest will continue to accrue on the tax due; or
- Have paid the tax and your claim for refund was denied based on the Letter of Findings: you may then appeal directly to the tax court. You have 90 days from the date a refund claim was denied to file suit.