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On Behalf of | Apr 10, 2024 | Tax Controversies

If the taxpayer:  (i) files an Indiana tax return with a balance due and without payment; or (ii) does not resolve the delinquent Indiana taxes at the proposed assessment stage (payment or protest), then the Indiana Department of Revenue (“IN-DOR”) will issue a Demand for Payment (“AR-40”).

Within twenty (20) days of the date of the AR-40:  (i) full payment must be made to the IN-DOR; or (ii) payment arrangements must be in the process of being established with the IN-DOR.  Otherwise, the delinquent Indiana taxes will become a collectible judgment against the taxpayer.

The AR-40 does not permit the taxpayer to dispute the underlying tax liability.  At the AR-40 stage, in order to dispute the underlying tax liability, before the expiration of the twenty (20) day time period, the taxpayer must full pay the amount due and then file for a refund of the disputed amount.