Indiana Tax Amnesty Program Goes Live July 15

The 2025 Indiana legislature authorized the Indiana Department of Revenue to offer an amnesty program in 2026, allowing taxpayers who need to triage historical liabilities – either due to underreporting or non-reporting – to come forward and establish a clean slate with the state. Unlike other amnesty programs, the upcoming Indiana program offers a powerful incentive: not only will the state waive penalties, but it will also waive any interest or collection fee that otherwise would have accrued on the disclosed liabilities.

Unusually, Indiana will allow people to get the benefits of amnesty by setting up a payment plan during the amnesty window, even though the final installment may fall outside the window.  However, the state incorporated a stick to go with the amnesty carrot: it doubles the penalties for eligible periods for taxpayers who choose not to participate if they are later audited. The program kicks off on July 15, and runs through September 9.  

Program Details

Eligible companies who participate will receive the amnesty penalty and interest waiver if by September 9 they:

1. File all previous and current Indiana tax returns. We recommend companies do so through their INTIME account.
2. Make payment, through one of two mechanisms:

• Call United Collection Bureau to pay liabilities in full or set up a payment plan; or
• Through your INTIME online account, pay the liability in full or set up a payment plan.

For companies that set up a payment plan during the amnesty window, the final installment must be made by June 7, 2027.

Liabilities for tax periods ending before January 1, 2024 are eligible for the program.

Companies with a liability in a period covered by the program who did not participate in the 2005 or 2015 amnesty are eligible to participate. Indiana recently launched a tool to determine eligibility on INTIME, available at https://www.in.gov/dor/amnesty/.

Companies who were recently assessed a tax due in an audit are still eligible for the benefits of the program. Companies who pay their liability under the amnesty program waive their right to appeal or protest that liability.

If you have questions or would like to discuss whether this amnesty program is right for your company, please reach out to a member of our tax team.

Martin Eisenstein | meisenstein@brannlaw.com

David Swetnam-Burland | dsb@brannlaw.com

Nat Bessey | nbessey@brannlaw.com

Jamie Szal | jszal@brannlaw.com