Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 15 - TAX ADMINISTRATION; GENERAL PROVISIONS
Rule 11 - Penalties and Interest
Section 11-4 - Fraudulent intent to evade tax

Authority: IC 6-8.1-3-3

Affected: IC 6-8.1-10-4

Sec. 4.

The penalty for failure to file a return or to make full payment with that return with the fraudulent intent of evading the tax is one hundred percent (100%) of the tax owing. Fraudulent intent encompasses the making of a misrepresentation of a material fact (See 45 IAC 15-5-7(f)(3)) which is known (See 45 IAC 15-5-7(f)(3)(B)) to be false, or believed not to be true, in order to evade taxes. Negligence, whether slight or great, is not equivalent to the intent required. An act is fraudulent if it is an actual, intentional wrongdoing, and the intent required is the specific purpose of evading tax believed to be owing.