1. (a) The penalty prescribed by IC 6-8.1-10-2.1 (b) shall be assessed by the department on a taxpayer who fails to make payments as required in IC 6-5.5-6 . However, no penalty shall be assessed for a quarterly payment if the payment equals or exceeds:

   1. (1) twenty percent (20%) of the final tax liability for the taxable year; or
   2. (2) twenty-five percent (25%) of the final tax liability for the taxpayer's previous taxable year.

2. (b) The penalty for an underpayment of tax on a quarterly return shall only be assessed on the difference between the actual amount paid by the taxpayer on the quarterly return and the lesser of:

   1. (1) twenty percent (20%) of the taxpayer's final tax liability for the taxable year; or
   2. (2) twenty-five percent (25%) of the taxpayer's final tax liability for the taxpayer's previous taxable year.

As added by P.L.347-1989(ss), SEC.1. Amended by P.L.1-1991, SEC.55.