The Indiana Department of Revenue (DOR) has instituted new payment plan options to help ease the burden to Hoosier taxpayers. The new payment plan options became effective in early May and allow individuals to establish plans for a longer period of time without the previous requirement of a down payment equal to 20 percent of the outstanding liability.
“Without question, the inflexibility of DOR’s payment plan structure was one of the most commonly cited frustrations from taxpayers and their representatives throughout 2017,” said DOR Commissioner Adam Krupp. “It was imperative that we re-visit the process to determine new options to ensure taxpayers could pay their debt in a reasonable amount of time and fewer Hoosiers would be in financial hardship due to their tax obligations.”
To establish a payment plan, the amount of tax due must be $100 or greater. The new payment plan options are as follows based on the amount owed:
• $101 - $1,000 owed: up to a 12-month payment plan
• $1,001 - $5,000 owed: up to a 24-month payment plan
• $5,001 or above: up to a 36-month payment plan
DOR partnered with several organizations, including Indiana Legal Services (ILS) and the University of Notre Dame Tax Clinic, in a collaborative effort to create a more realistic solution to benefit low-income taxpayers who struggle to fulfill their tax obligations. For instance, the previous payment option only offered up to 24-month plan and often required a down payment of at least 20 percent. The new payment plans will provide increased flexibility in order to assist taxpayers, thanks to the feedback obtained from directors at ILS and Notre Dame.
“This change in direction can also be largely attributed to the work of our Commissioner’s Tax Advisory Council, which began meeting earlier this year, and features both Frank DiPietro from ILS and Patrick Thomas from Notre Dame,” Commissioner Krupp added.
Payment plans can be created online through DOR’s INtax system at www.intaxpay.in.gov or by calling DOR Payment Services at 317-232-2165, Monday through Friday, 8 a.m. to 4:30 p.m., EST. For more information on the Commissioner’s Tax Advisory Council, visit www.in.gov/dor/5739 on the DOR website.
“We commend the Commissioner and the Indiana Department of Revenue for recognizing the financial hardships that result in owing money and taking action to help low-income Hoosiers pay what they owe without further hurting their financial status,” said Frank DiPietro, Director of the ILS Low Income Tax Clinic.