Have a Tax Question? Ask a Tax Expert
Chances that your tax debt would be forgives are very low...
By collecting sales tax from customers - you acted as an agent of the Indiana Department of Revenue - and the money you collected never belonged to you.
That debt is different from the income tax debt when we pay the tax based on net income - that may be reduced by deductions and credits.
Most courts hold that sales tax debt is a not dischargable under bankruptcy law...
Nowadays all states are short on revenue and become mor e aggressive in collection activities - so most likely you will be contacted...
Your best move would be to negotiate installment payment plan and may get forgiveness of penalties, but it is unlikely that you will be forgiven the interest.
To get better deal - you might want to have a local CPA or Enrolled Agent to represent you.
Let me know if you need any help.