Indiana will offer a limited-time Tax Amnesty Program from July 15 through September 9, 2026, providing businesses and individuals an opportunity to resolve outstanding state tax liabilities at a significantly reduced cost.
Key Highlights
- Applies to most Indiana taxes, including income, sales and use, and withholding, for periods ending before January 1, 2024
- Provides a full waiver of penalties, interest, and collection fees upon successful participation
- Available to resident and nonresident individuals and entities that did not participate in Indiana’s 2005 or 2015 amnesty programs
- Liabilities must be paid in full during the amnesty window or through a payment plan completed by June 7, 2027
Important Considerations
To qualify, taxpayers must be current on all required filings. The program applies to known and assessed liabilities, making it especially valuable for those with existing balances or collection activity.
Eligible taxpayers who choose not to participate may be subject to additional penalties.
Amnesty vs. Voluntary Disclosure
While amnesty provides the most favorable financial outcome for known liabilities, taxpayers with unfiled or undisclosed exposure should also evaluate Indiana’s Voluntary Disclosure Agreement (VDA) program. Depending on the situation, the VDA program may provide:
- A reduced lookback period
- The ability to file anonymously
- Penalty relief (interest typically still applies)
Next Steps
With a limited participation window, now is the time to:
- Identify potential Indiana exposures
- Quantify outstanding liabilities
- Determine whether amnesty or the VDA program provides the better outcome
If you would like assistance evaluating your options or preparing for the program, please reach out to your Kruggel Lawton tax advisor.
