Indiana's State Taxes

• State income taxes are due in Indiana if you are a state resident or are employed within the state. A tax return must be filed annually, and balances---as of 2009---are paid to the Indiana Department of Revenue at:
  
  P.O. Box 595
  Indianapolis, IN 46206
  
  

Why Penalties are Imposed

• Indiana has several penalties in place if you fail to file a state tax return. In most circumstances, the penalty is a civil fine. However, failure to file a tax return could result in criminal charges. These penalties are an effort to deter tax payers from not filing or paying annual state taxes.
  
  

Penalties

• As of 2009, Indiana's penalties range from a fine of $10.00 per day for every day past due (not to exceed $500.00 or 20 percent of the total tax balance) to imprisonment for one year if the failure to file or pay is intentional.
  
  

What the Funds are Used For

• Taxes and penalties paid to the Indiana Department of Revenue are absorbed into the state's budget, and allocated for various programs including education, public safety, conservation and environmental protections, transportation, and health and human services.
  
  

How Penalties are Enforced

• If your taxes and penalties go unpaid, the Department issues a tax warrant to the county clerk, notifying the clerk that you owe a tax debt. The clerk gives the warrant to the county sheriff or a collection agency to collect your outstanding tax debt. Methods for collection include placing a lien on your property, selling your property at auction, levying your bank account or garnishing your wages.