Section 6-5.5-7-1 - Failure to make payment; underpayments; estimated payments(a) The penalty in the amount prescribed by IC 6-8.1-10-2.1(b) shall be assessed by the department on a taxpayer who fails to make payments as required in IC 6-5.5-6. However, no penalty shall be assessed for a quarterly payment if the payment equals or exceeds: (1) twenty percent (20%) of the final tax liability for the taxable year; or(2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year.(b) The penalty for an underpayment of tax on a quarterly return shall only be assessed on the difference between the actual amount paid by the taxpayer on the quarterly return and the lesser of: (1) twenty percent (20%) of the taxpayer's final tax liability for the taxable year; or(2) twenty-five percent (25%) of the taxpayer's final tax liability for the taxpayer's previous taxable year. A payment required to be made in the manner prescribed in IC 6-5.5-6-3(c), but not paid in such a prescribed manner, shall be subject to the penalty provided in IC 6-8.1-10-2.1(b)(5).
(c) For a corporation required to make estimated payments under this section: (1) if a corporation has a current taxable year or a previous taxable year that is less than twelve (12) months, the penalty under this section shall be computed in a manner consistent with Section 6655 of the Internal Revenue Code, including regulations promulgated thereunder; and(2) the department may adopt rules or issue guidelines related to the application of payments withheld on behalf of the corporation under IC 6-3-4 or IC 6-5.5-2-8.Amended by P.L. 159-2021,SEC. 29, eff. 7/1/2021.As added by P.L. 347-1989 (ss), SEC.1. Amended by P.L. 1-1991, SEC.55.