Tax Attorney in Lafayette, IN

Federal IRS representation for Lafayette and Tippecanoe County taxpayers — audits, back taxes, liens, levies, Purdue University post-doc and faculty matters, Purdue F-1 international-student § 871 and § 1441 withholding disputes, NIL income for Big Ten student-athletes, Subaru of Indiana Automotive (SIA) Japanese-expat FBAR and treaty work, Caterpillar Lafayette Engines and Wabash National RSU disputes, Eli Lilly operations matters, Alcoa Lafayette Works manufacturing exposure, and U.S. Tax Court petitions tried in Indianapolis at the Birch Bayh Federal Building. We coordinate Indiana Department of Revenue matters under Form POA-1, and refer Indiana Tax Court litigation to locally admitted Indiana counsel under a co-counsel arrangement.

Reviewed by Parham Khorsandi, Esq. — California Bar #266658. Last reviewed: May 25, 2026.

Call (800) 883-8301 Free Consultation

Serving Lafayette, West Lafayette, Tippecanoe County, Carroll, Clinton, Montgomery, White, Warren, Benton, and Fountain counties

$100M+

in tax relief secured

2,000+

resolved cases

5.0 / 72

Google reviews

U.S. Tax Court

admitted counsel

If you owe back taxes in Lafayette, here is what shapes your 2026 case

Indiana keeps its 3.05% flat personal income tax under Ind. Code § 6-3-2-1, phasing down to 2.95% by 2026 under HEA 1002 and SB 451. On top of that flat state rate, Tippecanoe County imposes a County Local Income Tax of 1.10% under Ind. Code § 6-3.6 — administered by the Indiana Department of Revenue but pushing the effective Lafayette state-and-local personal rate to 4.15%. Every one of Indiana's 92 counties layers its own CLIT on top of the state flat rate, which makes Indiana one of the few flat-rate states whose all-in tax burden varies materially by county of residence. Corporate income tax sits at 4.9% under Ind. Code § 6-3-2-1.5, also phasing down. State sales tax is 7% under Ind. Code § 6-2.5-2-2 with no local sales-tax add-on, uniform statewide.

If you have received an IRS CP504, LT11, or Statutory Notice of Deficiency, or if the Indiana DOR has issued a Proposed Assessment under Ind. Code § 6-8.1-5-1, the deadline to act is short. Indiana taxpayers get 60 days from a Letter of Findings to petition the Indiana Tax Court under Ind. Code § 6-8.1-9-1 — one of only a handful of U.S. states with a dedicated tax court of exclusive original jurisdiction. We pull your IRS account transcripts, calculate your CSED, file Form 2848 Power of Attorney with the IRS and Form POA-1 with the Indiana DOR, and put administrative brakes on collection while the case is built.

Federal tax representation for Lafayette taxpayers

Victory Tax Lawyers, LLP is a California-Bar-admitted tax-resolution law firm based in Los Angeles. Our federal practice runs nationwide: the Internal Revenue Service accepts our Form 2848 Power of Attorney in every state, and the U.S. Tax Court — a single federal tribunal with jurisdiction over IRS deficiency cases — holds regular trial sessions at the Birch Bayh Federal Building, 46 E Ohio Street in Indianapolis, roughly 65 miles southeast of Lafayette. From our Robertson Boulevard office in Los Angeles, we represent Lafayette residents, West Lafayette academics, and Tippecanoe-County-domiciled businesses in IRS audits, collection cases, Tax Court petitions, Offers in Compromise under IRC § 7122, Installment Agreements under IRC § 6159, lien discharges under IRC § 6325, levy releases under IRC § 6343, and Trust Fund Recovery Penalty defenses under IRC § 6672.

For Indiana state tax matters — the 3.05% flat personal income tax (phasing to 2.95%), the 1.10% Tippecanoe County Local Income Tax under Ind. Code § 6-3.6, the 4.9% corporate income tax, the 7% state sales tax under Ind. Code § 6-2.5-2-2, withholding-tax assessments, and contested matters headed to the Indiana Tax Court — we file Form POA-1 with the Indiana Department of Revenue and handle the administrative track directly. For formal litigation in the Indiana Tax Court (a Tier-2 court established under Ind. Code 33-26 with exclusive original jurisdiction over DOR final determinations, seated in Indianapolis) or any Indiana state court, we associate with locally admitted Indiana counsel under a co-counsel arrangement. The federal portion of the engagement, which is usually the larger exposure for Purdue post-docs, faculty, international F-1 students, Subaru of Indiana expatriate engineers, and Caterpillar plant managers, stays with us.

Lafayette sits on the east bank of the Wabash River in west-central Indiana — the seat of Tippecanoe County and one half of the Lafayette-West Lafayette metro that anchors Purdue University, the state's land-grant research university and a charter Big Ten member classified as R1 (Carnegie very-high research) with engineering, pharmacy, veterinary, and agriculture programs that consistently rank among the top in the country. Purdue Engineering is among the highest-ranked engineering schools in the United States; the Daniels School of Business, the College of Pharmacy, and the College of Veterinary Medicine each anchor distinct tax practices. Purdue Research Park, one of the largest university research parks in the country, hosts spin-outs and federal contractors including CERIAS (Center for Education and Research in Information Assurance and Security) — a National Center of Academic Excellence in cyber operations whose researchers and graduate students routinely work under Department of Defense and Q-clearance contracts. Subaru of Indiana Automotive (SIA), the Subaru Corporation manufacturing plant on E State Road 38 east of Lafayette, builds the Outback, Legacy, Ascent, and Toyota Camry, employs more than 6,000 workers, and rotates senior Japanese expatriate engineers and managers through assignments that hit the IRC § 911 foreign-earned-income exclusion, the FinCEN Form 114 (FBAR) trigger for accounts at Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), Mizuho, Japan Post Bank, and Resona, and the U.S.-Japan income tax treaty (Article 4 residency tie-breakers, Article 14 dependent-services rules) for cross-border compensation. Caterpillar Lafayette Engines on Old Romney Road manufactures large-bore diesel and natural-gas engines and gas-turbine packagers and carries a salaried workforce on Caterpillar RSU and PSU grants. Wabash National Corporation, headquartered at 1000 Sagamore Parkway South in Lafayette, is one of the country's largest manufacturers of semi-trailers, truck bodies, and tank trailers, with executive-level RSU, IRC § 174 R&E capitalization, and IRC § 263A uniform-capitalization questions across its plant footprint. Eli Lilly and Company maintains active operations in the Lafayette area as part of its broader Indiana manufacturing and research network. Alcoa Lafayette Works on Veterans Memorial Parkway South operates one of the country's largest aluminum extrusion and aerospace-plate facilities. IU Health Arnett Hospital, Franciscan Health Lafayette, the Indiana Veterans' Home, and the Eli Lilly Diabetes & Endocrinology Clinic of Indianapolis-Lafayette serve a sizable 1099 physician and locum-tenens population. Tippecanoe County's agricultural footprint — corn, soybean, hog, and dairy operations along the Wabash River bottomlands — produces recurring Schedule F, IRC § 175 soil-and-water deductions, IRC § 2032A special-use valuation, and IRC § 1301 farm-income-averaging questions. Purdue's international-student population — among the largest at any U.S. public university, with substantial Chinese, Indian, Korean, Iranian, and other cohorts — produces a steady volume of non-resident-alien IRC § 871 and § 1441 withholding work, Form W-8BEN treaty-rate filings, ITIN applications, and post-graduation IRC § 911 exclusion engagements for taxpayers transitioning to OPT, H-1B, or return-home status.

Your tax rights as a Lafayette taxpayer

Two parallel rights frameworks apply when you owe tax. Federal rights come from the Internal Revenue Code and IRS Publication 1, the Taxpayer Bill of Rights. State rights come from the Indiana Adjusted Gross Income Tax Act (Ind. Code 6-3), the Tax Administration provisions of Ind. Code 6-8.1, the County Local Income Tax statute (Ind. Code 6-3.6), and the Indiana Taxpayer Bill of Rights at Ind. Code § 6-8.1-1-3. Knowing both is the difference between a clean resolution and a missed 60-day Indiana Tax Court petition deadline that turns into a state tax warrant filed with the Tippecanoe County Clerk against your real and personal property.

Right to representation

IRC § 7521(b)(2) and (c) give you the right to be represented by an attorney, CPA, or Enrolled Agent during any IRS examination or interview. Once Form 2848 is on file, the IRS must deal with us first, not you. Indiana mirrors this through Form POA-1 Power of Attorney filed with the Indiana Department of Revenue, authorized under Ind. Code § 6-8.1-3-8.

Right to U.S. Tax Court review

IRC § 6213(a) gives you 90 days from a Statutory Notice of Deficiency to petition the U.S. Tax Court without paying the tax first. Miss the 90 days and the federal assessment becomes final. The Tax Court trial city closest to Lafayette is Indianapolis (Birch Bayh Federal Building, 46 E Ohio Street), about 65 miles southeast — a Lafayette petitioner can request Indianapolis when filing through DAWSON.

Right to Indiana Tax Court review

Ind. Code § 6-8.1-9-1 gives you 60 days from a Letter of Findings to petition the Indiana Tax Court — a dedicated state tax court established at Ind. Code 33-26 with exclusive original jurisdiction over Indiana Department of Revenue final determinations. The Indiana Tax Court is seated at 115 W Washington Street, Room 1130, Indianapolis IN 46204, about 65 miles southeast of Lafayette. Indiana is one of only a handful of U.S. states (alongside New Jersey, Oregon, and Hawaii) with a dedicated tax court of exclusive original jurisdiction. Decisions are reviewable directly by the Indiana Supreme Court.

Collection Due Process

IRC § 6320 (lien) and IRC § 6330 (levy) give you a 30-day window to request a CDP hearing once the IRS files a Notice of Federal Tax Lien or issues a Final Notice of Intent to Levy. A timely CDP filing halts collection and preserves judicial review in the U.S. Tax Court.

Right to settle for less than owed

Federally, IRC § 7122 authorizes Offers in Compromise based on doubt as to liability, doubt as to collectibility, or effective tax administration. Indiana runs a parallel Offer-in-Compromise authority under Ind. Code § 6-8.1-3-17(c), with hardship and insolvency standards similar to the federal program. Both regimes require all returns filed before consideration.

Right to recover fees

IRC § 7430 allows recovery of administrative and litigation costs if the IRS takes a position that is not substantially justified and the taxpayer prevails. The threshold is high but real, especially in audit reconsideration and Innocent Spouse cases under IRC § 6015.

How Victory Tax Lawyers helps Lafayette taxpayers

Offer in Compromise under IRC § 7122

We file Form 656 with Form 433-A(OIC) or 433-B(OIC), document the Reasonable Collection Potential, and negotiate doubt-as-to-collectibility offers when full collection is not feasible within the remaining CSED. For Lafayette taxpayers, a federal OIC does not resolve Indiana state liability; we run a parallel Indiana OIC under Ind. Code § 6-8.1-3-17(c) where the state debt is real, recognizing that the Indiana DOR applies tighter financial-disclosure standards than the IRS.

Installment Agreements under IRC § 6159

Streamlined IAs (under $50,000), partial-pay IAs under IRC § 6159(d), and full-pay agreements. We push for partial-pay structures where the IRC § 6502 ten-year CSED will extinguish the balance before payoff — an under-used resolution path for Lafayette taxpayers between $50,000 and $250,000 in federal debt. Indiana runs its own state Payment Plan program through INTIME, the Indiana Taxpayer Information Management Engine portal.

Lien discharge, subordination, and withdrawal

When a Notice of Federal Tax Lien blocks a Lafayette or West Lafayette property sale or refinance, we file Form 14135 (discharge), Form 14134 (subordination), or Form 12277 (withdrawal). NFTLs filed with the Tippecanoe County Recorder encumber title; the IRS procedures under IRC § 6325 set the cure path. Timing must align with the closing on a Historic Centennial, downtown Lafayette, Wabash Township, or West Lafayette transaction.

Levy release under IRC § 6343

Wage levies, bank levies, and accounts-receivable levies. We document economic hardship under IRC § 6343(a)(1)(D) and Treasury Reg. § 301.6343-1(b)(4), and where the levy is procedurally defective, we challenge it through Collection Due Process or Appeals. Indiana state tax warrants follow a parallel track under Ind. Code § 6-8.1-8-2, recorded by the county sheriff and enforced through the Tippecanoe County Clerk.

Audit defense and U.S. Tax Court litigation

Correspondence audits, office audits, and field examinations — including sensitive issues like cryptocurrency, foreign accounts under FinCEN Form 114 (FBAR) for Japanese, Chinese, Indian, Korean, and Iranian bank accounts tied to the Purdue and SIA workforce, S-corporation reasonable-compensation, Subaru and Caterpillar RSU disposition timing, and IRC § 83(b) election validation for Purdue Research Park startups. If the audit closes unfavorably, we petition the U.S. Tax Court within the 90-day IRC § 6213(a) window. Lafayette petitioners typically request the Indianapolis trial city, 65 miles southeast at the Birch Bayh Federal Building.

Penalty abatement under IRC § 6651 and IRM 20.1.1

First-Time Abate administrative relief, reasonable-cause abatement, and statutory exceptions for failure-to-file and failure-to-pay penalties. On accuracy-related penalties under IRC § 6662, we document substantial authority or adequate disclosure to defeat the assessment. Indiana penalties under Ind. Code § 6-8.1-10-2.1 follow a separate reasonable-cause analysis.

Twelve types of Lafayette tax matters we handle

Federal cases for Lafayette residents and businesses, framed against the Indiana DOR overlay and the Tippecanoe County Local Income Tax where it matters.

Purdue faculty and post-doc § 117 and § 117(c)

Purdue University is a charter Big Ten institution and an R1 land-grant research university with one of the largest engineering, pharmacy, and veterinary programs in the country. IRC § 117(a) excludes qualified scholarships covering tuition and required fees, but IRC § 117(c) treats stipend amounts paid as compensation for teaching or research as taxable wages reportable on Form W-2. Pub 970 walks through the boundary line. Post-doctoral researchers across the College of Engineering, the College of Pharmacy, the College of Veterinary Medicine, the College of Agriculture, and the Daniels School of Business frequently misclassify NRSA fellowship stipends and end up with under-withholding. IRC § 174 capitalization of research expenditures since the 2017 TCJA also drives recurring questions for principal investigators with sponsored-research budgets.

Purdue F-1 international student § 871 and § 1441

Purdue's international-student population — among the largest at any U.S. public university — includes substantial Chinese, Indian, Korean, Iranian, Saudi, Taiwanese, and Vietnamese cohorts. F-1 visa-holders who fail the substantial-presence test are non-resident aliens taxed under IRC § 871 on U.S.-source income; IRC § 1441 imposes 30% withholding on payments to non-resident aliens unless a treaty rate or exemption is documented on Form W-8BEN. The U.S.-China, U.S.-India, U.S.-Korea, and other student-and-trainee treaty articles permit specific exclusions for scholarship and certain wage income that get lost on Form 1042-S. We unwind incorrect Form 1040 filings (NRAs should generally file Form 1040-NR), recover over-withheld treaty amounts, and handle ITIN applications on Form W-7. After graduation, transitioning F-1 / OPT / H-1B taxpayers heading home into IRC § 911 foreign-earned-income territory get a separate planning conversation.

Purdue Big Ten NIL § 61 student-athlete income

Name, Image, and Likeness compensation paid to Purdue Boilermaker student-athletes is gross income under IRC § 61 reported on Form 1099-NEC or 1099-MISC, and self-employment tax applies under IRC § 1402 when the activity rises to a trade or business. NIL collectives, brand-deal agencies, and direct-licensing arrangements all generate Schedule C exposure. Indiana state tax at 3.05% and Tippecanoe County CLIT at 1.10% apply to the same income for an Indiana-resident athlete. Multi-state athletes pick up jock-tax exposure for road games at Big Ten venues outside Indiana. We handle the federal Schedule C cleanup, quarterly Form 1040-ES setup, and S-corporation structuring where the NIL income justifies it.

Subaru of Indiana (SIA) Japanese-expat FBAR and treaty

Subaru of Indiana Automotive on E State Road 38 builds the Outback, Legacy, Ascent, and Toyota Camry and rotates senior Japanese expatriate engineers, plant managers, and finance staff through Lafayette assignments. Three tax patterns dominate. First, FinCEN Form 114 (FBAR) is required when aggregate foreign-account balances at Mitsubishi UFJ (MUFG), Sumitomo Mitsui (SMBC), Mizuho, Resona, or Japan Post Bank exceed $10,000 — common during an expatriate posting. Second, the U.S.-Japan income tax treaty Article 4 residency tie-breaker, Article 14 dependent-services rules, and Article 17 directors' fees provisions all govern how SIA expatriate compensation is split between U.S. and Japan source. Third, IRC § 911 foreign-earned-income exclusion planning matters for SIA employees rotating out of Lafayette back to Japan or to other Subaru Corporation facilities. Tax-equalization clauses in SIA assignment letters and IRC § 1503 dual-consolidated-loss rules round out the recurring fact pattern.

Caterpillar Lafayette Engines RSU and PSU

Caterpillar Inc. operates the Lafayette Engines facility on Old Romney Road, building large-bore diesel and natural-gas engines and gas-turbine packagers. Salaried plant managers, engineers, and supply-chain leads sit on Caterpillar Restricted Stock Unit and Performance Share Unit grants taxed as ordinary income at vest under IRC § 83(a). Supplemental withholding at 22% federal regularly under-withholds against the 32% or 35% marginal bracket, and the 3.05% Indiana state plus 1.10% Tippecanoe County CLIT push a $400,000 vesting event toward a $55,000+ April balance due. International-rotation Cat employees pick up the same Subaru-style FBAR and treaty issues for Switzerland, Belgium, and other Cat hub locations.

Wabash National executive compensation

Wabash National Corporation, headquartered at 1000 Sagamore Parkway South in Lafayette, is one of the country's largest manufacturers of semi-trailers, truck bodies, and tank trailers. Public-company RSU grants vest under IRC § 83(a) with the same supplemental-withholding shortfall pattern as Caterpillar. On the corporate side, IRC § 263A uniform capitalization on raw-materials inventory, IRC § 174 R&E capitalization on process-engineering work, IRC § 199A qualified-business-income passthroughs for plant-supervisor S-corp owners, and IRC § 168(k) bonus-depreciation timing on capital equipment all generate recurring engagements.

Eli Lilly and Alcoa manufacturing exposure

Eli Lilly and Company maintains active Lafayette-area operations as part of its broader Indiana pharmaceutical manufacturing and research network, generating IRC § 174 R&E capitalization, IRC § 41 R&D credit, and equity-compensation matters for technical staff. Alcoa Lafayette Works on Veterans Memorial Parkway South operates one of the country's largest aluminum extrusion and aerospace-plate facilities, producing recurring IRC § 162 ordinary-and-necessary deductions, IRC § 199A passthrough questions for tier-2 supplier S-corps, and IRC § 165 casualty-loss analyses tied to industrial operations.

IU Health Arnett and Franciscan Health 1099 physician

IU Health Arnett Hospital, Franciscan Health Lafayette, and the Eli Lilly Diabetes & Endocrinology Clinic of Indianapolis-Lafayette anchor a meaningful 1099 physician and locum-tenens population across the Lafayette and Frankfort markets. Hospitalists, anesthesiologists, surgeons, endocrinologists, and locum-tenens physicians frequently work as 1099 independent contractors through professional-corporation or S-corp structures, raising IRC § 199A qualified-business-income questions, IRC § 1402 self-employment tax, and reasonable-compensation issues. Frankfort and surrounding Clinton County markets follow similar patterns.

CERIAS and Purdue Research Park cyber R&D

The Center for Education and Research in Information Assurance and Security (CERIAS) at Purdue is a National Center of Academic Excellence in cyber operations; many researchers and graduate students hold DoD contracts and Q-clearance work for federal agencies and prime contractors at Purdue Research Park. Equity grants from cyber-security startups, IRC § 1202 qualified small-business-stock planning, IRC § 83(b) election timing on founder stock, and IRC § 1045 rollover treatment all come up. Cleared contractors also face IRC § 7345 passport-revocation exposure if seriously delinquent tax debt accrues during a long contract cycle — a clearance-impacting event.

Tippecanoe County agriculture Schedule F

Tippecanoe County corn, soybean, hog, and dairy operations along the Wabash River bottomlands carry Schedule F farm-income exposure. IRC § 175 soil-and-water deductions, IRC § 180 fertilizer expense, IRC § 263A(d) farm exception from UNICAP, IRC § 1301 farm-income averaging across three prior years, IRC § 2032A special-use estate valuation, and the IRC § 199A(g) cooperative-paid qualified-business-income passthrough deduction all matter. Crop-insurance proceeds under IRC § 451(f) can be deferred one year to even out income bunching. We coordinate the federal Schedule F work with Indiana DOR matters and Tippecanoe County property-tax assessor disputes on agricultural use-value land classification.

Trust Fund Recovery Penalty

IRC § 6672 imposes personal liability on officers, partners, and check-signers for unpaid employment-tax withholding. Lafayette restaurant, Purdue-adjacent service business, automotive-supplier, and trucking owners are the most frequent targets. The IRS uses Form 4180 interviews to identify responsible persons. Indiana pursues a parallel responsible-officer claim under Ind. Code § 6-2.5-9-3 for unpaid sales-tax trust funds and Ind. Code § 6-3-4-8 for withholding tax.

Unfiled returns and SFR substitutes

When the IRS files a Substitute for Return under IRC § 6020(b), the assessed tax is almost always overstated. Filing the correct original return is the first move — it routinely reduces the balance. Indiana runs a parallel substitute-return process under Ind. Code § 6-8.1-5-1, and the DOR uses federal return matching to issue a Proposed Assessment whenever a federal SFR posts. F-1 and non-resident-alien filers at Purdue who filed Form 1040 by mistake instead of Form 1040-NR fall into a related cleanup pattern.

Nine common causes of tax debt for Lafayette taxpayers

Patterns we see repeatedly in Lafayette engagements. None of them are unusual — all of them are resolvable.

1. Caterpillar, Wabash, and Cat-engine RSU under-withholding

A Caterpillar or Wabash National RSU vests; the company withholds 22% federal supplemental, which leaves a five- or six-figure shortfall against the 32% to 37% top brackets for salaried managers and executives. Add 3.05% Indiana state and 1.10% Tippecanoe County CLIT, and a $300,000 vesting event arrives in April with $42,000 to $60,000 still owed. The CP14 lands in May, the Indiana DOR Proposed Assessment follows within 90 days.

2. Purdue F-1 student wrong-form filing

An international graduate student at Purdue uses commercial tax software that defaults to Form 1040 for U.S. residents, claiming the standard deduction and education credits the student is not entitled to as a non-resident alien. The IRS catches the mismatch against the Form 1042-S, opens a CP2000 or audit, and assesses tax plus accuracy-related penalty under IRC § 6662. Amended-return (Form 1040-X) plus original Form 1040-NR usually resolves the matter and recovers treaty over-withholding.

3. 1099 physician self-employment underpayment

Lafayette 1099 physicians at IU Health Arnett Hospital, Franciscan Health Lafayette, and the Eli Lilly Diabetes & Endocrinology Clinic, plus locum-tenens consultants and Schedule C operators, file with no estimated-tax payments. The first IRS CP14 lands the following spring with penalties under IRC § 6654 and parallel Indiana penalty under Ind. Code § 6-8.1-10-2.1.

4. SIA Japanese-expat missed FBAR

A Subaru of Indiana Automotive expatriate from Japan retains accounts at MUFG, SMBC, Mizuho, or Japan Post Bank during a Lafayette posting and does not file FinCEN Form 114. The non-willful penalty is up to $10,000 per violation. We move the file into the IRS Streamlined Filing Compliance Procedures (Foreign Offshore for non-U.S. domiciliaries during the lookback, Domestic Offshore otherwise), reducing exposure to a 5% miscellaneous penalty on the highest aggregate balance during the lookback period.

5. Business closure

When an LLC or S-corp closes with unpaid Form 941 payroll-tax balances, IRC § 6672 follows the responsible officer personally — well after the entity is dissolved. Indiana pursues a parallel responsible-officer claim under Ind. Code § 6-3-4-8 for income-tax withholding and Ind. Code § 6-2.5-9-3 for trust-fund sales tax. Tippecanoe County restaurant and Purdue-adjacent service-business failures are a recurring pattern.

6. Divorce and joint-return fallout

A jointly-filed return tied to a now-former spouse's understatement leaves both parties liable until Innocent Spouse relief under IRC § 6015 is granted. Tippecanoe County divorce filings track the federal record, and unresolved RSU or deferred-comp income from a Caterpillar, Wabash, or Purdue faculty spouse is a recurring driver.

7. Cryptocurrency CP2000 surprise

Exchanges issue Form 1099-DA (introduced 2025), and the IRS computer matches reported gains. Missed basis records turn into ordinary-income assessments at the full sale price. Lafayette's Purdue engineering and computer-science workforce carries a meaningful retail crypto population, plus CERIAS-trained graduates who hold protocol-token positions.

8. Late-filed or unfiled returns

Failure-to-file under IRC § 6651(a)(1) compounds at 5% per month, capped at 25%. After three years, refunds are barred under IRC § 6511. Indiana imposes a parallel 10% one-time late-filing penalty under Ind. Code § 6-8.1-10-2.1 plus 10% on the late-payment side. International F-1 alumni who left the U.S. without filing a final-year Form 1040-NR sit in this bucket.

9. Indiana Use Tax on out-of-state purchases

Ind. Code § 6-2.5-3-2 imposes a 7% Use Tax on goods purchased out of state (online retailers, vehicles bought across state lines, RVs and boats brought into Indiana) and used in the state. The DOR enforces aggressively through vehicle-registration cross-matching at the Tippecanoe County BMV branches and out-of-state retailer reporting; many Lafayette and West Lafayette taxpayers discover the liability years late.

Eight tax liabilities that pull in Lafayette taxpayers

Federal authority alongside the Indiana statute where there is a parallel.

Failure to file federal return

IRC § 6651(a)(1) imposes 5%/month, max 25%, plus interest under IRC § 6601. The Indiana mirror is Ind. Code § 6-8.1-10-2.1, a 10% one-time penalty on the unpaid state liability, with separate 10% late-payment exposure on the same balance.

Failure to file Indiana state return

Ind. Code § 6-8.1-10-2.1 imposes a late-filing penalty separate from the federal penalty. The Indiana DOR may issue a Proposed Assessment under Ind. Code § 6-8.1-5-1, triggering a 60-day protest window and, if the protest fails, a Letter of Findings opening the 60-day Indiana Tax Court petition deadline under Ind. Code § 6-8.1-9-1.

Federal § 7122 Offer in Compromise eligibility

All federal returns must be filed (IRC § 7122(d) compliance) and the offer must reflect Reasonable Collection Potential. The non-refundable $205 application fee may be waived for low-income certified offers.

Indiana Sales Tax delinquency

Ind. Code § 6-2.5-2-2 imposes a 7% state sales tax with no local sales-tax add-on (uniform statewide). Personal liability for responsible persons under Ind. Code § 6-2.5-9-3 pierces the corporate veil for trust-fund sales tax. The Indiana DOR uses the Registered Retail Merchant Certificate revocation as an enforcement lever — pulling a Lafayette restaurant or retailer certificate effectively closes the business.

Trust Fund Recovery Penalty

IRC § 6672 imposes 100% personal liability on responsible persons for unpaid trust-fund employment tax. Indiana applies a similar responsible-person rule to withheld state income tax under Ind. Code § 6-3-4-8.

Accuracy-related penalty

IRC § 6662 imposes 20% on substantial-understatement or negligence; IRC § 6663 imposes 75% on fraud. Defense is built on substantial authority, adequate disclosure, or reasonable cause.

Indiana Use Tax assessment

Ind. Code § 6-2.5-3-2 imposes a 7% Use Tax on out-of-state purchases brought into Indiana. The DOR pursues unreported Use Tax through vehicle-registration cross-matching and out-of-state retailer reporting. Voluntary disclosure agreements under Ind. Code § 6-8.1-3-17 can resolve historical exposure on favorable terms with the Indiana DOR Special Investigations Section.

Tippecanoe County Local Income Tax

Ind. Code § 6-3.6 authorizes a County Local Income Tax administered by the Indiana DOR alongside the state return. The Tippecanoe County rate is 1.10%, set by the Tippecanoe County Local Income Tax Council and allocated to public-safety, certified-shares, and economic-development purposes. CLIT applies to residents of the county on January 1 of the tax year and piggybacks on federal and state income-tax adjustments — a CP2000 federal adjustment routinely triggers a Tippecanoe County CLIT follow-on assessment within months.

What resolution can look like

Debt reduced

An accepted IRC § 7122 Offer in Compromise can resolve six-figure balances for cents on the dollar where Reasonable Collection Potential supports the offer. The acceptance rate sits around 33% nationally; preparation determines the outcome.

Penalties abated

First-Time Abate removes a single year of failure-to-file or failure-to-pay penalties for taxpayers with a clean three-year compliance record. Reasonable-cause abatement under IRM 20.1.1 reaches further when supported by documentation.

Lien released or withdrawn

Once a debt is paid in full, the IRS releases the Notice of Federal Tax Lien within 30 days per IRC § 6325(a). On an Installment Agreement of $25,000 or less, lien withdrawal under Form 12277 can be requested to clear title with the Tippecanoe County Recorder.

Sample tax-resolution outcomes

Anonymized client matters drawn from our $100M+ aggregate tax-relief record across 2,000+ resolved cases.

Year	Tax debt	Resolution	Final outcome
2024	$152,318	IRC § 6159 Installment Agreement	Accepted at $25/month, partial-pay
2024	$128,442	Streamlined Installment Agreement	Accepted at $25/month
2023	$119,705	Partial-Pay Installment Agreement	Accepted at $50/month
2023	$115,260	IRC § 6159 Installment Agreement	Accepted at $25/month
2022	$108,917	Partial-Pay Installment Agreement	Accepted at $50/month

Past results do not guarantee future outcomes. Each tax case is unique. Results depend on the specific facts of the matter, including the taxpayer's financial condition, compliance history, and the discretion of the Internal Revenue Service and the Indiana Department of Revenue.

Why Victory Tax Lawyers for a Lafayette federal-tax case

Victory Tax Lawyers is California-Bar-admitted, not Indiana-Bar-admitted. That distinction matters — and it does not block our work. The U.S. Tax Court is a federal court with nationwide jurisdiction; an attorney admitted to that court may petition and try cases at any of its trial locations, including the Indianapolis trial city 65 miles southeast of Lafayette at the Birch Bayh Federal Building, 46 E Ohio Street. IRS administrative practice runs on Form 2848 Power of Attorney, which is accepted from any attorney in good standing with any state bar plus an active Centralized Authorization File number. Most of our Lafayette clients never need a separately admitted Indiana attorney because the case is, at its core, federal.

For administrative work before the Indiana Department of Revenue — protests, audit responses, OIC submissions, Letter of Findings replies, and Payment Plan requests — we file Form POA-1 Power of Attorney and handle the matter remotely. When a case must move to the Indiana Tax Court (the dedicated Tier-2 court at 115 W Washington Street, Room 1130, Indianapolis IN 46204, established under Ind. Code 33-26 with exclusive original jurisdiction over Indiana DOR final determinations) or an Indiana state court, we coordinate with locally admitted Indiana counsel under a co-counsel arrangement. The federal portion of the engagement, which is usually the larger exposure for Purdue post-docs, faculty, SIA expatriate engineers, Caterpillar and Wabash National executives, and IU Health Arnett physicians, stays with us.

What distinguishes our firm: a California-Bar-admitted managing attorney with active U.S. Tax Court admission, an Enrolled Agent on staff for IRS administrative work, a 5.0 / 72-review Google rating, and $100M+ in cumulative tax relief secured across 2,000+ resolved matters. No marketing claim of being an Indiana-licensed firm — we are not. A factually accurate offer of federal tax representation, available to any Lafayette taxpayer, at the same standard we apply to a Los Angeles client. Our 100% remote workflow runs through a secure document portal — you never have to drive to Robertson Boulevard.

Our seven-step process for Lafayette clients

Free consultation

A 30-minute call with a tax attorney to scope your matter, identify deadlines, and decide whether engagement is the right move.

Engagement letter

A written scope, fee structure, and conflict check. Flat fees for administrative resolution; hourly or hybrid for litigation.

Form 2848 and POA-1

We file the federal Power of Attorney with the IRS and Form POA-1 with the Indiana DOR, register on the CAF system, and step in as the contact of record.

Transcript and CSED analysis

We pull IRS account transcripts via Form 8821, calculate each year's CSED under IRC § 6502, and identify tolling events.

Strategy memo

A written summary: the resolution path (OIC, IA, CNC, audit response, CDP, Tax Court), the timeline, and the realistic outcome range.

Filing and negotiation

We file the operative document — Form 656, Form 433-A(OIC), Form 9423, Form 12153, or an Indiana Tax Court petition through local counsel — and handle every IRS and Indiana DOR contact.

Compliance monitoring

After resolution we monitor compliance through the OIC five-year terms or the IA term, file future returns, and prevent default.

Two collection clocks: federal CSED and Indiana's tax-warrant rule

The IRS has ten years from the date of assessment to collect a federal tax under IRC § 6502. After the Collection Statute Expiration Date, the debt is extinguished by operation of law. The clock pauses (“tolls”) when an Offer in Compromise is pending, when a Collection Due Process petition is filed, during bankruptcy, when an installment agreement is requested, and when the taxpayer is outside the United States for six months or more — relevant for SIA Japanese expatriates and Purdue international researchers.

Indiana runs a parallel state collection rule. Under Ind. Code § 6-8.1-5-2, the Indiana DOR must issue a Proposed Assessment within three years of the return's due date (six years for omissions exceeding 25% of gross income, no limit for fraud or unfiled returns). Once an Indiana tax warrant is filed under Ind. Code § 6-8.1-8-2 with the Tippecanoe County Clerk, the warrant operates as a judgment against the taxpayer's real and personal property and remains enforceable for 10 years, renewable for additional 10-year periods. Many Lafayette taxpayers carry a federal CSED that will expire at or near the same time as the state warrant, but the state warrant can be re-filed indefinitely. Pull both records and know both dates before agreeing to any payment plan or amended return that could restart a clock.

Lafayette tax authorities and venues

A working knowledge of the tribunals, agencies, and field offices that touch Lafayette matters is what separates an answered Notice from a wage levy or tax warrant. Below is the working list our firm uses on every Lafayette file.

Internal Revenue Service

The federal tax authority, at irs.gov. Lafayette does not host a direct IRS Taxpayer Assistance Center; the closest TAC is in Indianapolis at 575 N Pennsylvania Street, IN-0151, Indianapolis IN 46204 (Minton-Capehart Federal Building). Appointments required.

U.S. Tax Court — Indianapolis trial city

The U.S. Tax Court trial city serving Lafayette is Indianapolis, 65 miles southeast at the Birch Bayh Federal Building, 46 E Ohio Street. Petitions are filed electronically through DAWSON at ustaxcourt.gov; the 90-day deadline runs from the IRS Statutory Notice of Deficiency under IRC § 6213(a). Small-tax-case (S-case) procedures under IRC § 7463 apply to deficiencies of $50,000 or less per year.

Indiana Department of Revenue — Lafayette district office

The state tax authority, at in.gov/dor. Indiana DOR headquarters at 100 N Senate Avenue, Room N105, Indianapolis IN 46204; the Lafayette district office operates at 100 S Earl Avenue, Lafayette IN 47904. Administers the 3.05% flat personal income tax (phasing to 2.95% by 2026), the 4.9% corporate income tax, the 7% state sales tax under Ind. Code § 6-2.5-2-2, withholding tax, Use Tax under Ind. Code § 6-2.5-3-2, and County Local Income Tax under Ind. Code § 6-3.6 (administered on behalf of all 92 Indiana counties, including Tippecanoe).

Indiana Tax Court

A dedicated state tax court of exclusive original jurisdiction, authorized under Ind. Code 33-26 and seated at 115 W Washington Street, Room 1130, Indianapolis IN 46204 — 65 miles southeast of Lafayette. Hears appeals of Indiana DOR final determinations and Indiana Board of Tax Review property-tax decisions. 60-day petition deadline from the Letter of Findings under Ind. Code § 6-8.1-9-1. Indiana is one of only a handful of U.S. states with a dedicated tax court of exclusive original jurisdiction; decisions are reviewable directly by the Indiana Supreme Court.

Tippecanoe County Treasurer

The county tax-collection authority for Lafayette and West Lafayette. Office at 20 N 3rd Street, 2nd Floor, Lafayette IN 47901 (Tippecanoe County Office Building). Page: tippecanoe.in.gov/treasurer. Administers Tippecanoe County property-tax billing and collection across Lafayette, West Lafayette, Battle Ground, Dayton, Otterbein, and the surrounding townships.

Tippecanoe County Assessor

The county assessment authority. Office at 20 N 3rd Street, 3rd Floor, Lafayette IN 47901. Sets the assessed value of Tippecanoe County property — the starting point for the county tax bill, subject to Indiana's constitutional Circuit Breaker caps at 1% of assessed value for residential homesteads, 2% for agricultural land and other residential, and 3% for non-residential under Ind. Const. Art. 10 § 1.

City of Lafayette Treasurer

The municipal finance authority at 20 N 6th Street, Room 110, Lafayette IN 47901 (Lafayette City Hall). Lafayette does not impose a separate municipal income tax (Tippecanoe County collects 1.10% CLIT under Ind. Code § 6-3.6 instead). Local revenue includes the Tippecanoe County food-and-beverage tax, the Tippecanoe County innkeeper's tax, and various business-license and stormwater fees administered through City Hall.

U.S. District Court — Northern District of Indiana, Lafayette Division

Refund suits filed after payment of tax and exhaustion of administrative remedies under IRC § 7422 may be brought in the U.S. District Court (N.D. Ind., Lafayette Division, Charles A. Halleck Federal Building, 230 N 4th Street, Lafayette IN 47901) or the U.S. Court of Federal Claims in Washington, D.C. The Lafayette Division of N.D. Ind. covers Tippecanoe and surrounding west-central Indiana counties.

IRS Independent Office of Appeals

The administrative-appeals body within the IRS that resolves cases without litigation. Lafayette cases run through the Appeals offices serving the Midwest region. Filings: Form 9423 (collection appeal) and Form 12153 (CDP). Page: irs.gov/appeals.

Taxpayer Advocate Service — Indiana

An independent organization within the IRS that helps when normal channels stall. The Indianapolis TAS office serves taxpayers across the state, including Lafayette and West Lafayette. Page: taxpayeradvocate.irs.gov.

Speak with a tax attorney about your Lafayette matter

Free consultation, attorney-client privileged, no obligation. If a Notice of Deficiency, a Final Notice of Intent to Levy, or an Indiana DOR Letter of Findings is in front of you, the deadline to respond is real and short — call today.

Call (800) 883-8301 Free Consultation

Frequently asked questions — Lafayette tax

Does Indiana have a state income tax?

Yes. Indiana has a 3.05% flat personal income tax under Ind. Code § 6-3-2-1, phasing down to 2.95% by 2026 under HEA 1002 and SB 451. On top of that flat state rate, Tippecanoe County imposes a 1.10% County Local Income Tax under Ind. Code § 6-3.6 — administered by the Indiana DOR but specific to county of residence. The effective state-and-local personal rate for a Lafayette resident is 4.15%. Corporate income tax is 4.9% under Ind. Code § 6-3-2-1.5, also phasing down. State sales tax is 7% under Ind. Code § 6-2.5-2-2, uniform statewide with no local sales-tax add-on. Indiana repealed its inheritance tax effective January 1, 2013; estate tax exposure for Lafayette residents is federal-only.

Where is the closest U.S. Tax Court trial location to Lafayette?

The U.S. Tax Court trial city serving Lafayette is Indianapolis, about 65 miles southeast, at the Birch Bayh Federal Building, 46 E Ohio Street. A Lafayette taxpayer requests Indianapolis as the trial location when filing the Tax Court petition. Petitions are filed electronically through DAWSON at ustaxcourt.gov; the 90-day deadline from the IRS Statutory Notice of Deficiency under IRC § 6213(a) is jurisdictional — a single day late and the federal assessment becomes final.

What is the Indiana Tax Court and how does it work?

The Indiana Tax Court is a dedicated state tax court of exclusive original jurisdiction, established by the Indiana General Assembly and codified at Ind. Code 33-26. It is seated at 115 W Washington Street, Room 1130, Indianapolis IN 46204 — 65 miles southeast of Lafayette. Indiana is one of only a handful of U.S. states (alongside New Jersey, Oregon, and Hawaii) with a dedicated tax court of exclusive original jurisdiction over state tax disputes. The court hears appeals of Indiana DOR final determinations (Letters of Findings) and Indiana Board of Tax Review property-tax decisions. The petition deadline is 60 days from the Letter of Findings under Ind. Code § 6-8.1-9-1 — tighter than the federal 90-day Tax Court deadline. Decisions are reviewable directly by the Indiana Supreme Court. Victory Tax Lawyers refers Indiana Tax Court litigation to locally admitted Indiana counsel; we handle the federal portion and the Indiana DOR administrative work directly under Form POA-1.

I am a Purdue international student on an F-1 visa — how am I taxed?

F-1 visa-holders who do not meet the substantial-presence test are non-resident aliens taxed under IRC § 871 on U.S.-source income only. IRC § 1441 imposes 30% withholding on payments to non-resident aliens unless a lower treaty rate is documented on Form W-8BEN. The U.S.-China, U.S.-India, U.S.-Korea, U.S.-Germany, and other student-and-trainee treaty articles allow specific exclusions on a limited amount of scholarship or wage income — for example, Article 20 of the U.S.-China treaty exempts up to $5,000 of personal-services income for Chinese student-trainees. Non-resident aliens generally file Form 1040-NR (not Form 1040); commercial tax software often defaults to Form 1040 by mistake, producing under-stated or over-stated balances that trigger CP2000 or audit correspondence. We correct prior-year filings via Form 1040-X and Form 1040-NR, recover over-withheld treaty amounts, and handle Form W-7 ITIN applications. After graduation, transitioning to OPT or H-1B changes the residency analysis under IRC § 7701(b); planning before the substantial-presence threshold matters.

I am a Subaru of Indiana (SIA) expatriate from Japan — what FBAR and treaty issues apply?

Three federal threads run alongside a Subaru of Indiana Automotive expatriate posting in Lafayette. First, FinCEN Form 114 (FBAR) is required whenever the aggregate value of foreign financial accounts you own or have signature authority over exceeds $10,000 at any point in the calendar year — accounts at MUFG, SMBC, Mizuho, Resona, or Japan Post Bank routinely cross that threshold. Non-willful failure to file can reach $10,000 per violation; willful failure reaches the greater of $100,000 or 50% of account balances. Second, the U.S.-Japan income tax treaty (Article 4 residency tie-breakers, Article 14 dependent personal services, Article 17 directors' fees, and the Article 23 saving clause) controls how SIA compensation is split between U.S. and Japan source while you are on assignment. Third, if you transition out of Lafayette mid-year, IRC § 911 foreign-earned-income exclusion planning (Form 2555) and IRC § 1503 dual-consolidated-loss rules affect the next return. Tax-equalization clauses in SIA assignment letters are negotiable. Streamlined Filing Compliance Procedures resolve historical FBAR gaps at a reduced penalty — we file the Streamlined Domestic Offshore or Foreign Offshore submission depending on facts.

I am a Purdue post-doctoral researcher — is my NRSA stipend taxable?

It depends on what the stipend pays for. IRC § 117(a) excludes qualified scholarships used for tuition and required course-related fees of a degree candidate. IRC § 117(c) reverses that exclusion to the extent the amount paid represents compensation for teaching, research, or other services required as a condition of receiving the award. Most NRSA, NIH-T32, NSF, and Purdue-internal post-doc stipends fall on the IRC § 117(c) side — they are compensation for research services and are taxable on Form W-2 (or Form 1099-MISC where misclassified). Pub 970 (the IRS scholarship and education publication) walks through the analysis. Post-docs who paid no estimated tax and no W-4 withholding routinely face a five-figure April balance plus IRC § 6654 underpayment penalty. We sort the federal characterization, run quarterly Form 1040-ES setup, and handle the Indiana DOR Proposed Assessment that follows.

I work at Caterpillar Lafayette Engines — what tax issues should I watch for?

Caterpillar's Lafayette Engines facility on Old Romney Road manufactures large-bore diesel and natural-gas engines and gas-turbine packagers, with a salaried workforce on Caterpillar RSU and PSU grants. Three tax patterns dominate. First, RSU and PSU income vests as ordinary income at fair market value under IRC § 83(a), and the 22% federal supplemental withholding routinely under-withholds against a 32% to 37% marginal bracket. Second, Cat's international-rotation employees pick up FBAR and treaty exposure on accounts in Switzerland, Belgium, Singapore, or other Cat hub locations. Third, Cat equity grants combined with Indiana's 3.05% flat state and 1.10% Tippecanoe County CLIT push the effective rate on a high-bracket RSU vest to roughly 41.15% federal-state-local. We coordinate Form 2848 with the IRS, Form POA-1 with the Indiana DOR, and an Installment Agreement or Offer in Compromise where the April balance is unmanageable.

Can I be audited by both the IRS and the Indiana DOR for the same year?

Yes. The IRS and the Indiana Department of Revenue operate independently and share information through the IRS-state exchange program. A federal audit adjustment is routinely reported to Indiana under the state's federal-change reporting rule (Ind. Code § 6-3-4-6), and vice versa. We coordinate the two audits to prevent inconsistent positions on the federal record from costing you on the Indiana return. Because Indiana maintains a 3.05% flat rate plus the 1.10% Tippecanoe County CLIT, a federal adjustment now produces a predictable state and county follow-on calculation.

Does Indiana offer an Offer in Compromise equivalent to the federal program?

Yes. The Indiana DOR accepts Offers in Compromise under Ind. Code § 6-8.1-3-17(c), applying a doubt-as-to-collectibility framework analogous to the federal program. Hardship and insolvency standards are similar to the IRS Form 656 analysis, but the Indiana DOR typically requires tighter documentation and a more conservative Reasonable Collection Potential calculation. All Indiana returns must be filed before consideration, and a financial-disclosure package is required. We typically run an Indiana OIC in parallel with the federal Offer where both debts are real. Indiana also operates a separate Voluntary Disclosure Agreement program through the Special Investigations Section for taxpayers with unreported historical exposure who come forward proactively.

Can a California-Bar-admitted attorney represent me in Lafayette?

For federal IRS matters — yes. The IRS accepts Form 2848 Power of Attorney from any attorney in good standing with any state bar. The U.S. Tax Court is a single federal court with nationwide jurisdiction; an attorney admitted to that court may represent a taxpayer at any Tax Court trial location, including the Indianapolis trial city serving Lafayette. For Indiana DOR administrative work, we file Form POA-1 Power of Attorney and handle the matter remotely. For formal litigation in the Indiana Tax Court or an Indiana state court, we co-counsel with locally admitted Indiana attorneys. Most engagements — audit defense, OIC, IA, levy release, Tax Court — are federal and stay entirely with our firm.

I farm in Tippecanoe County — what Schedule F issues come up?

Tippecanoe County corn, soybean, hog, and dairy operations carry a distinctive set of federal provisions. IRC § 175 deducts soil-and-water-conservation expenses currently. IRC § 180 deducts fertilizer and lime. IRC § 263A(d) exempts most farms from UNICAP. IRC § 451(f) defers crop-insurance proceeds one year. IRC § 1301 averages farm income across three prior years to smooth a high-yield year. IRC § 2032A allows special-use valuation of farmland for estate-tax purposes when the heirs continue the farming operation. IRC § 199A(g) provides a qualified-business-income deduction for farmer-cooperative patronage dividends. We coordinate the federal Schedule F work with Indiana DOR matters and Tippecanoe County Assessor disputes on agricultural use-value land classification.

What if I have unfiled returns going back several years?

The IRS Voluntary Filing Compliance policy and IRM 5.1.11.6 generally require the last six years of returns to bring a taxpayer back into compliance. Filing prior-year returns is the first step before any OIC, IA, or CNC request — IRC § 7122(d) compliance is a prerequisite for a federal Offer. Refunds claimed on returns filed more than three years after the original due date are time-barred under IRC § 6511(b)(2). Indiana follows a parallel filing-compliance posture; the DOR may issue a Proposed Assessment under Ind. Code § 6-8.1-5-1 when a taxpayer fails to file, and Tippecanoe County CLIT obligations accrue alongside the state return whether filed or not.

Can the IRS or the Indiana DOR levy my Lafayette bank account or wages?

Yes — after a Final Notice of Intent to Levy (CP90 or LT11) and expiration of the 30-day Collection Due Process window under IRC § 6330, the IRS may levy bank accounts at Lafayette Bank & Trust, Purdue Federal Credit Union, Centier Bank, First Federal Savings Bank, PNC, Fifth Third, Old National, Huntington, or any Indiana-chartered institution and serve wage levies on Lafayette employers. A timely Form 12153 CDP request halts collection while the case is reviewed by Appeals. After a CDP determination, the taxpayer has 30 days to petition the U.S. Tax Court under IRC § 6330(d)(1). The Indiana DOR issues state tax warrants under Ind. Code § 6-8.1-8-2, which are filed with the Tippecanoe County Clerk and operate as judgments enforceable through the Tippecanoe County Sheriff — including bank-account levies, wage garnishments, and personal-property seizures.

What is the Tippecanoe County Local Income Tax and how does it work?

The Tippecanoe County Local Income Tax (CLIT) is a county-level income tax authorized under Ind. Code § 6-3.6 and administered by the Indiana Department of Revenue on behalf of all 92 Indiana counties. Tippecanoe County's combined rate is 1.10%, set by the Tippecanoe County Local Income Tax Council and allocated to public-safety, certified-shares, and economic-development purposes. CLIT applies to residents of the county on January 1 of the tax year — a Frankfort resident (Clinton County) commuting to a Lafayette employer pays Clinton County CLIT at the Clinton rate, not Tippecanoe County CLIT, even though their employer is Tippecanoe-County-based. CLIT assessments piggyback on federal and state income tax adjustments, and the Indiana DOR enforces unpaid CLIT through the same tax-warrant procedure that applies to state income tax under Ind. Code § 6-8.1-8-2.

How long does a federal Offer in Compromise take to process?

An IRS Offer in Compromise typically takes six to twelve months from filing to a final decision. The IRS deems an Offer accepted if not rejected within 24 months under IRC § 7122(f). While the OIC is pending, IRC § 6331(k) bars most levies, and the CSED is tolled. Rejected offers carry a 30-day Appeals window. A well-documented Offer with a complete Form 433-A(OIC) or 433-B(OIC) financial package moves faster than one returned for incompleteness. An Indiana OIC under Ind. Code § 6-8.1-3-17(c) typically runs four to nine months on a parallel track.

Will hiring a tax attorney stop IRS collection action immediately?

Once Form 2848 is on file, the IRS routes all communication through the attorney and stops contacting the taxpayer directly. Active levies are not automatically lifted by the POA filing alone — release requires either a financial showing under IRC § 6343, a CDP filing under IRC § 6330, or an installment-agreement / OIC submission that triggers the IRC § 6331(k) collection bar. We move on those concurrently when a levy is in place. Indiana state collection follows a similar pattern: a Form POA-1 routes state contact, and a pending Indiana OIC or Payment Plan request pauses enforcement under Ind. Code § 6-8.1-8-2.

About the author

This page was written and reviewed by Parham Khorsandi, Esq., Managing Attorney of Victory Tax Lawyers, LLP. Cal Bar #266658. Admitted to practice before the United States Tax Court. Mr. Khorsandi has resolved over 2,000 federal tax matters and secured more than $100 million in tax relief for clients across all 50 states.

Page last reviewed: May 25, 2026. Editorial standard: every federal-statute citation links to law.cornell.edu (Legal Information Institute, Cornell Law School). Every Indiana statute citation references the Indiana Code maintained by the Indiana General Assembly. Every administrative authority links to its primary .gov source. Material changes to the law are reflected within 30 days of effective date.

Attorney Advertising. This page is provided by Victory Tax Lawyers, LLP for general informational purposes only. Nothing on this page constitutes legal advice, creates an attorney-client relationship, or substitutes for consultation with a licensed attorney about your specific tax matter. Prior results described or referenced do not guarantee a similar outcome. Each tax case turns on its individual facts, applicable law, and the discretion of the Internal Revenue Service, the Indiana Department of Revenue, the U.S. Tax Court, the Indiana Tax Court, or other adjudicating body.

Victory Tax Lawyers, LLP is California-Bar-admitted with its principal office at 1100 S. Robertson Blvd., Los Angeles, CA 90035. The firm represents clients in federal tax matters nationwide via Form 2848 Power of Attorney and admission to the United States Tax Court. The firm is not admitted to practice in the courts of the State of Indiana; where an Indiana state-court appearance or Indiana Tax Court litigation is required, the firm associates with locally admitted counsel.

IRS Circular 230 Disclosure: The discussion of U.S. federal tax issues on this page is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed under the Internal Revenue Code or for promoting, marketing, or recommending to another party any tax-related matters addressed. For specific tax advice, consult independent tax counsel.

Authorities cited on this page

26 U.S.C. § 7122 — Federal Offer in Compromise
26 U.S.C. § 6159 — Installment Agreements
26 U.S.C. § 6321 — Federal Tax Lien
26 U.S.C. § 6325 — Lien Release and Discharge
26 U.S.C. § 6331 — Levy and Distraint
26 U.S.C. § 6343 — Release of Levy
26 U.S.C. § 6502 — Collection Statute Expiration
26 U.S.C. § 6213 — Tax Court Petition Window
26 U.S.C. § 6320 — CDP for Liens
26 U.S.C. § 6330 — CDP for Levies
26 U.S.C. § 6651 — Failure-to-File and Failure-to-Pay
26 U.S.C. § 6672 — Trust Fund Recovery Penalty
26 U.S.C. § 6015 — Innocent Spouse Relief
26 U.S.C. § 7345 — Passport Revocation
26 U.S.C. § 83 — Property Transferred in Connection with Performance of Services (RSU vesting)
26 U.S.C. § 117 — Qualified Scholarships and § 117(c) compensation rule
26 U.S.C. § 871 — Tax on Non-Resident Aliens
26 U.S.C. § 1441 — Withholding on Non-Resident Aliens
26 U.S.C. § 911 — Foreign-Earned-Income Exclusion
26 U.S.C. § 174 — Research and Experimental Expenditures
26 U.S.C. § 263A — Uniform Capitalization (UNICAP)
26 U.S.C. § 175 — Soil and Water Conservation Expenditures (farmers)
26 U.S.C. § 1301 — Farm-Income Averaging
26 U.S.C. § 2032A — Special-Use Valuation of Farm Property
Ind. Code § 6-3-2-1 — Indiana flat-rate personal income tax (3.05% phasing to 2.95%)
Ind. Code § 6-3-2-1.5 — Indiana corporate income tax (4.9%)
Ind. Code § 6-3-4-6 — Indiana federal-change reporting
Ind. Code § 6-3-4-8 — Indiana withholding-tax responsible-officer liability
Ind. Code § 6-3.6 — County Local Income Tax (Tippecanoe County 1.10%)
Ind. Code § 6-2.5-2-2 — Indiana state sales tax (7%)
Ind. Code § 6-2.5-3-2 — Indiana Use Tax
Ind. Code § 6-2.5-9-3 — Indiana sales-tax responsible-person liability
Ind. Code § 6-8.1-3-8 — Indiana DOR Power of Attorney authority
Ind. Code § 6-8.1-3-17 — Indiana Voluntary Disclosure and Offer in Compromise authority
Ind. Code § 6-8.1-5-1 — Indiana Proposed Assessment procedure
Ind. Code § 6-8.1-5-2 — Indiana assessment statute of limitations
Ind. Code § 6-8.1-8-2 — Indiana tax warrant procedure
Ind. Code § 6-8.1-9-1 — Indiana Tax Court petition window (60 days)
Ind. Code § 6-8.1-10-2.1 — Indiana late-filing and late-payment penalty
Ind. Code 33-26 — Indiana Tax Court enabling statute
Ind. Const. Art. 10 § 1 — Property-tax “Circuit Breaker” constitutional caps (1% / 2% / 3%)