Indiana Tax Amnesty Program 2026: What Businesses Need to Know

The Indiana Department of Revenue has announced that a new Indiana tax amnesty program will run from July 15, 2026 through September 15, 2026.

This limited-time program allows eligible taxpayers to resolve unpaid tax liabilities while receiving relief from penalties, interest, and certain enforcement actions.

If your business has outstanding Indiana sales tax or other state tax obligations, this could be a significant opportunity.

What Is the Indiana Tax Amnesty Program?

Under legislation enacted in 2025 (P.L. 213, H.B. 1001), the Department is required to establish a tax amnesty program for taxpayers with unpaid liabilities for tax periods ending before January 1, 2023.

Eligible taxes include those the Department is authorized to collect or administer — including:

• Sales tax
• Withholding tax
• Corporate income tax
• Individual income tax
• Other listed state-administered taxes

What Relief Does the Program Provide?

If approved and paid in full (or under a written payment agreement), the Department will:

• Abate penalties
• Waive interest
• Remove collection fees and costs
• Release tax liens
• Avoid civil or criminal prosecution
• Withdraw warrants or assessments

For businesses facing compounding sales tax penalties, this relief can be substantial.

Who Qualifies?

The program applies to unpaid tax liabilities that were due and payable for tax periods ending before January 1, 2023.

Additional eligibility guidelines are currently pending under S.B. 243, which recently advanced through the Committee on Ways and Means.

The final version of S.B. 243 may clarify:

• Specific taxpayer eligibility exclusions
• Procedural requirements
• Interaction with federal conformity changes

Businesses should monitor updates closely as the legislative process continues.

Why This Matters for Sales Tax Compliance

Sales tax liabilities often grow quickly due to:

• Automatic penalties
• Monthly interest accrual
• Enforcement actions
• Tax liens

An amnesty window provides a rare opportunity to reset compliance without long-term financial damage.

For businesses that have:

• Unfiled Indiana sales tax returns
• Outstanding balances
• Prior assessment notices
• Nexus exposure discovered post-Wayfair

This may be the most cost-effective time to resolve the issue.

Key Dates to Remember

• 📅 Amnesty Period: July 15 – September 15, 2026
• 📌 Eligible Periods: Tax periods ending before January 1, 2023
• ⏳ Program limited to a short administrative window

These programs are temporary and not guaranteed to repeat.

Should Your Business Apply?

If your company operates in Indiana and has unresolved tax liabilities, now is the time to review:

• Outstanding balances
• Filing gaps
• Audit exposure
• Nexus risk

Waiting until after the amnesty window closes could mean full penalties and enforcement resume.

Schedule a Free Sales Tax Review

If you're unsure whether your business qualifies for the Indiana tax amnesty program — or you want to evaluate outstanding sales tax exposure — schedule a free consultation call with our team at sales.tax.

We’ll review your situation, assess potential savings under the amnesty program, and help you determine the best compliance strategy before the July 2026 deadline.

👉 Don’t wait until enforcement resumes. Take advantage of the opportunity while it’s available.