Payment Options

Penalty
If your tax return is filed after the April 15 due date and you have an amount due, you will probably owe a penalty. Penalty is 10% of the amount due (line 38 minus lines 34 and 35) or $5.00, whichever is greater. Exception: If you have an extension of time to file, are filing by the extended filing due date, and have prepaid at least 90% of the amount due by the April 15 due date, then no penalty is due.

Interest
If your tax return is filed after the April 15 due date and you have an amount due, you will owe interest (even if you have an extension of time to file). Interest should be figured on the sum of line 38 minus lines 34 and 35. Contact the Department for the current interest rate by calling (317) 232-2240 or visit the Indiana Website.

Amount You Owe - Payment Options
There are several ways you can pay the amount you owe.

If sending a check, money order or cashiers check, make it payable to: Indiana Department of Revenue. Paperclip the payment to the bottom of the front of the return. If you don't have a paperclip, just include it loose in the envelope. Do not staple it to the return. Do not send cash.

Note: All payments made to the Indiana Department of Revenue must be made with U.S. Funds.

You may pay the Amount You Owe on line 41 with a major credit card over the Internet or by phone. Log on to E-Pay, or call 1-866-729-4682 toll free, and use your American Express, Discover, MasterCard, or Visa.

A convenience fee will be charged by the credit card processor based on the amount you are paying. You will be told what the fee is and you will have the option to either cancel or continue the credit card transaction.

You may also pay by the eCheck payment method, which uses a paperless check. This service may be used to pay the tax due with your Indiana individual income tax return, as well as any billings issued by the Indiana Department of Revenue for any tax type. Go to E-Pay and follow the step-by-step instructions to make your payment. You will receive a confirmation number and should keep this with your tax filing records. The fee for using this service is $1.00. Note: No payment is due if you owe less than $1.00.

Returned Checks
If your check is returned unpaid by your banking institution, you will be charged a ten percent (10%) penalty on the amount due or $5.00, whichever is greater, plus interest. The assessed amount will be due immediately upon receipt of the tax due notice and must be paid by certified check, bank draft or money order. If payment is not received timely, the penalty will be increased to the face value of the check or one hundred percent (100%) of the unpaid tax, whichever is smaller. Also, any permits and/or licenses issued by the Department may be revoked if the assessed amount is not paid immediately.

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