According to the Indiana Department of Revenue, some 2020 IT-40 Income Tax notices were recently sent in error. They incorrectly calculated late penalties on the Q1 & Q2 2020 estimates, since paid July 15, 2021. Their system is supposed to be corrected early next week to show that July 15, 2021 is timely paid for Q1 & Q2. Therefore, if you received a notice reducing the overpayment applied to 2021, a penalty liability payment amount due or a reduced refund check, it is wrong if the penalties have to do with Q1 & Q2 estimates, with July 15, 2021 effective dates.

Please contact your Somerset advisor at 317.472.2200 or with any questions.