Note: This version of section effective until 1-1-2026. See also following version of this section, effective 1-1-2026.
Sec. 1. (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.