If a taxpayer: (i) files an Indiana tax return with a balance due and without payment; or (ii) does not resolve his or her delinquent Indiana taxes at the proposed assessment stage (payment or protest), then the Indiana Department of Revenue (“IDR”) will issue a Demand for Payment (“AR-40”).
Within twenty (20) days of the date of the AR-40: (i) full payment must be made to the IDR; or (ii) payment arrangements must be in the process of being established with the IDR. Otherwise, the delinquent Indiana taxes will become a collectible judgment against the taxpayer.
The AR-40 does not permit the taxpayer to dispute the underlying tax liability. At the AR-40 stage, in order to dispute the underlying tax liability, before the expiration of the twenty (20) day time period, the taxpayer must full pay the amount due and then file for a refund of the disputed amount.
Indiana Code §6-8.1-8-2
Indiana Department of Revenue Tax Practitioner Resource Packet