INDIANA – The Department of Revenue sent notices (bills) for those taxpayers who underpaid income tax on unemployment income in 2020. Payments are due by the date listed on the notice.
DOR was able to adjust most electronically filed returns, so those affected taxpayers do not need to file amended returns if they misreported or underpaid tax on unemployment income.
Taxpayers who did not correctly report or add back unemployment income on their electronically filed Indiana tax return should file an amended return if they do not receive a bill from DOR by July 6.
Unfortunately, DOR cannot adjust paper-filed returns. These taxpayers need to amend their tax returns if they misreported or underpaid tax on unemployment income.
Under Indiana law, DOR has the authority to waive penalties but not interest. However, following communications with the Governor’s office, Gov. Holcomb issued an Executive Order directing DOR to waive interest related to the underpayment due to software issues through Sept. 30.