The Indiana Department of Revenue recently announced a limited-duration amnesty program. Taxpayers may participate in the amnesty program from July 15 through September 15, 2026. The program is tailored to assist taxpayers like retailers and marketplace facilitators, in remediation for outstanding sales and use tax liabilities.
Timely applicants can eliminate penalties and interest owed pre-January 1, 2024, by simply paying off the underlying tax due. For quickly growing businesses, missteps in compliance can happen. Forgetting relatively small underpayments, exempt or excluded transactions being overlooked, and delayed filing of returns can accumulate substantial penalties and interest, especially over time. If this sounds like you, please reach out to Miles Consulting Group at info@milesconsultinggroup.com.
Why You Should Consider Amnesty Participation
If you’re a multi-state retailer navigating complex sourcing rules, a marketplace facilitator or third-party seller, or a business mistakenly using the wrong exemption or resale certificates, this program offers a rare chance to reset your compliance challenges without punitive costs.
The program will immediately waive all statutory penalties, along with forgiveness of interest accrued through June 30, 2026. (That’s where an amnesty like this can really benefit a company that has significant outstanding liabilities.) An eligible taxpayer who owes sales or use tax, as well as interest and penalties, accrued on or before June 30, 2026, must file a complete application through the Indiana Department of Revenue’s portal between July 15 and September 15, 2026. In addition, payment in full for the underlying tax liability, for pre-2024, must be received by the state on or before September 15, 2026
Partial payments, incomplete applications, or filings after the deadline will not qualify for penalty or interest relief.
Another unique aspect of this Indiana Amnesty program? The state is allowing companies under audit with an assessment to take advantage of it. This means that even though the Department has begun a formal review, the state believes your company is liable for tax, and took the steps to initiate a proposed assessment, a company may still opt into the amnesty window and reap the benefits! In most cases, businesses that have already been approached by the state would have to wait out the audit process or appeal the assessment, and would often not be eligible for such a program. As long as your company has not participated in a past amnesty, the business is still eligible to participate in the July 15 through September 15, 2026, Indiana tax amnesty program.
What Businesses Need to Do Now – In Indiana and Beyond
Businesses that operate in multiple state jurisdictions and have left state compliance matters on the back burner take the following steps:
- Specifically in Indiana, perform an analysis to determine when Nexus began in the state, determine whether your products and services are taxable in the state, and calculate estimated liability due to the state.
- Determine whether the amnesty process makes sense given those findings above.
- For any gap period not covered (i.e., January 2024 forward, determine other forms of remediation (such as VDAs, other back-filings, etc.) to become current.
- Contact us for assistance!
In Other states:
- Engage a Specialist. Consider a sales tax compliance expert to review nexus determinations, sourcing rules, and marketplace facilitator obligations.
- In states where already filing, audit and enhance record-keeping best practices. Reconcile all returns, exemption certificates, and use-tax self-assessments. Identify periods with underpayment or missed filings.
- Verify Certificate Validity. Ensure your resale and exemption certificates are on file and current. Provide supporting documentation for exemption or resale claims where applicable.
- Automate Sales Tax Collection. Review your point-of-sale or e-commerce system settings to capture the correct rates and jurisdictions.
- Train Staff. Educate accounting and operations teams on proper invoice coding and exemption-handling procedures.
In conclusion, Miles Consulting Group is here to help prepare retroactive or amended delinquent returns or complete registration requirements. For businesses qualified to participate in the program, we can assist with application requirements for liabilities incurred before January 2024.
