Indiana – Guidance on Claimed Race Horse Use Tax Amnesty Program

SALT Report 2827 – The Indiana Department of Revenue issued a bulletin regarding the amnesty program for unpaid use tax on claimed racehorses that is scheduled to run from July 1, 2013, through December 31, 2013. The amnesty program is applicable to unpaid use tax liabilities for transactions that occur prior to June 1, 2012.

The following situations are eligible for amnesty:

  • A taxpayer with an outstanding use tax liability that is due and payable to the Department for an eligible tax period,
  • A taxpayer who properly protests a liability in accordance with IC 6-8.1-5-1
  • A taxpayer who has a departmental hold on a tax liability payment resulting from an audit, a bankruptcy, a taxpayer advocate action, a criminal investigation, or a criminal prosecution,
  • A taxpayer who negotiated a payment plan on or prior to June 1, 2013, with the Department, a sheriff, a collection attorney, or a collection agency, and who had an unpaid liability during an amnesty-eligible tax period,
  • A taxpayer who filed a sales or use tax return for an amnesty-eligible tax period but underreported the tax liability that was actually due, or
  • A taxpayer who has not filed a sales or use tax return or paid taxes for an amnesty eligible tax period and has not been assessed by the department

The amnesty program does not apply to state gross retail or non-racehorse related use tax liabilities.  Additionally, taxpayers who have paid liabilities in full, including any interest or penalties, prior to the amnesty program are not eligible for a refund of those amounts. However, any overpayments made by a taxpayer during the amnesty period may be refunded at the Department’s discretion.  If an overpayment is not refunded, it will be issued as a credit.

Taxpayer’s wants to take advantage of the amnesty program should complete an amnesty settlement agreement and submit it to the Department.

For Further Information

Indiana Department of Revenue – Commissioner’s Directive No. 47