The Indiana Department of Revenue has announced that like federal income tax returns for 2010, the filing deadline for Indiana Income tax returns for 2010 is April 18, 2011 due to observance of Emancipation Day in Washington, D.C. on the usual date (April 15).

Even if you cannot pay the tax that is due, you can avoid penalties by filing your tax return on time. Congress has mandated to the IRS that it shall impose a penalty for filing your tax return late. The penalty is five percent per month up to a maximum of 25%, of the tax due but unpaid by the due date of the return. This works out to be an annualized rate of 60%!! When you add in interest, and late penalty, this can be an effective annual rate of interest in excess of 75%.

Many people also forget that failing to file your tax return is a crime.