Tax Overview: Indiana
Indiana tax debts are handled by the Department of Revenue and can trigger liens, levies, and wage garnishments. The state is one of the more taxpayer-friendly for resolution — the OIC program will stop collections while under review, and installment agreements are available up to 24 months without financials. For plans exceeding 24 months, the Taxpayer Advocate can arrange hardship installment agreements. Indiana uses United Collections Bureau as its third-party collection agency.
Key Tax Facts
- OIC available via Form FSOIC — WILL stop collections while under review
- All returns must be on file for OIC consideration
- Installment agreements up to 24 months without financials
- Plans exceeding 24 months require Taxpayer Advocate hardship application with full financials
- Collection agency (United Collections Bureau): case-by-case IAs, temp 6-12 month plans, up to 36 months
- Bank levy will not be released unless extenuating circumstances (e.g., corrected returns eliminate balance)
- Rate reduced from 3.23% to 3.05% in 2024, further reductions planned
- Uses license holds and refund intercepts as enforcement tools
Common Tax Issues
The Taxpayer Advocate path for 24+ month plans requires full financial disclosure and documentation
Bank levies are very difficult to release — typically only if corrected returns eliminate the balance entirely
United Collections Bureau terms are case-by-case, so outcomes can vary
Residency disputes require at least 3 items of proof (rental deed, voter registration, driver's license, vehicle registration, tax return, or utility bill)
Resolution Options in Indiana
Payment Plans (Installment Agreements)
Without financials: Up to 24 months
With financials: Up to 36 months
24 months without financials. Over 24 months requires Taxpayer Advocate hardship IA with full financials.
Offer in Compromise (OIC)
Available: Yes
Stops collections while pending
Form: Form FSOIC
WILL stop collections. All returns must be on file.
Wage Garnishment
Rate: Varies
Can lift with payment plan: No
Can reduce amount: No
Penalty Abatement
Available: Yes
Bank Levy
Can release: No
Will not release unless extenuating circumstances (e.g., corrected returns eliminate balance).
Hardship / Currently Not Collectible
Available: Yes
Taxpayer Advocate can arrange hardship IAs for plans exceeding 24 months.
Recent Tax Changes
- Rate reduced from 3.23% to 3.05% in 2024, further reductions planned
Official Resources
How Tax Advocate Group Helps Indiana Taxpayers
Whether you're dealing with the IRS, the Indiana Department of Revenue, or both — we provide comprehensive tax resolution services to Indiana residents and businesses.