Statute of Limitations on Tax Liens in the State of Indiana

Indiana has tax statutes of limitations similar to the federal tax system.

If you are subject to a tax lien in Indiana, you will want to know the statute of limitations for enforcement of that lien. It is imperative that you know these deadlines so you can enforce your rights in the event enforcement actions are taken after the statute of limitations has passed.


Tax Liens

A tax lien in the state of Indiana is a judgment that occurs once a tax warrant is filed. Tax warrants are filed when tax liabilities have not been paid and demand notices have generated neither a payment nor a protest. Once the tax warrant has been filed with your county clerk, it becomes a lien against all of your property within that county's borders. Additionally, any outstanding tax liabilities that have been filed as a lien will place a tax lien on all vehicle titles that are titled in the taxpayer's name and/or Social Security number.


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What is a Statute of Limitation?

A statute of limitation is a legal deadline by which legal actions or other actions must be taken. If these actions are not commenced within that period, then the actions may not be pursued. Essentially, with respect to tax liens, it serves as a time limit within which the state of Indiana must act.


Statute of Limitations for Tax Liens in Indiana

The statute of limitations for assessing tax in Indiana is three years from the later to occur of the due date of the tax return or the end of the calendar year which contains the taxable period for which the return is filed for certain taxes, such as the use tax, special fuel tax or oil inspection fee. Similar to the federal tax system, if you substantially understate any of your taxes, which would be equal to an understatement of 25 percent, the statute of limitations will be extended to six years.


What if you Have a Tax Lien?

If you owe more than $100 in taxes, you can set up a payment plan with the Indiana Department of Revenue. Ideally, you will take this step as soon as you receive a notice and demand. It is important to note that you will waive your right to protest the amount assessed if you do not respond to the Department of Revenue's assessment at the proposed assessment stage. Accordingly, once you become subject to a tax lien, your only recourse is to pay your bill.