Indiana Tax Amnesty 2026: What Small and Mid-Size Businesses Need to Know

Who This Applies To

The businesses most likely to have eligible Indiana liabilities are the ones that have been sitting on unresolved exposure for a year or more: restaurants, convenience stores, car dealers, contractors, hospitality businesses, and retailers that operate in Indiana or sell into the state. These are the businesses that typically end up in an audit or accumulate a collection case over time. If your business falls into any of those categories and has an open Indiana liability, this program was designed for situations like yours.

Eligibility is straightforward. You need outstanding Indiana tax liabilities for periods ending before January 1, 2024, and you cannot have participated in Indiana's 2005 or 2015 amnesty programs. You do not need to be an Indiana resident. Out-of-state businesses that had Indiana sales tax obligations and did not file are eligible.

If you did not receive a letter from DOR or its collections partner, United Collection Bureau, you may still qualify. Use the eligibility lookup tool at INTIME to check your status. Receiving a letter is not a requirement for participation.

What the Amnesty Covers

All Indiana state-listed taxes for periods ending before January 1, 2024 are eligible, including sales tax. DOR will waive penalties, interest, and collection fees in full when you complete payment under the program. If DOR has filed a tax warrant against your business, the lien is released once eligible liabilities are paid in full.

Payment plans are available. Businesses with eligible liabilities of at least $500 can establish a plan through INTIME or by calling United Collection Bureau at 888-782-5985. The plan must be fully paid by June 7, 2027. If you enter a plan and do not complete it by that date, the amnesty is cancelled, penalties are reinstated, and no extensions are available.

Does It Cover Businesses Under Audit?

Yes. If DOR has assessed a liability against your business as a result of an audit, that liability is eligible for amnesty provided the period ended before January 1, 2024 and you have not used a prior Indiana amnesty program. DOR's own Tax Amnesty 2026 FAQ confirms this.

The more important question is whether amnesty is the right call for your specific audit. That answer depends on whether there is anything substantive to fight on the tax itself.

In most amnesty situations, the primary benefit is penalty relief. If your business owes the underlying tax and there is not much of a factual or legal argument to dispute the base assessment, amnesty is likely the more practical path. You pay what you owe, the penalties and interest disappear, and the case is closed.

If there is a real dispute on the tax itself, however, the calculation changes. In a contested audit, you generally have a reasonable chance of getting penalties reduced or abated on the back end of the dispute anyway, particularly if there is a good-faith argument on the merits. In that situation, fighting the underlying tax and absorbing whatever penalty remains after the dispute may produce a better outcome than paying a number you believe is wrong just to avoid the penalty.

The tradeoff to understand is that if you pay a liability through amnesty, you waive your right to appeal or protest that assessment. The tax bill becomes final. If the amount DOR says you owe is incorrect or inflated, resolving the dispute first is the right sequence. For a broader look at how to approach an audit before it reaches that point, these audit defense fundamentals apply regardless of state.

Businesses currently in a pending appeal are in a hold status during the amnesty period. The additional penalty that can be imposed on non-participating eligible taxpayers does not apply while a protest is active. If you are in that position, the decision of whether to drop the appeal and take the amnesty, or continue the protest, depends on the strength of the argument and what the penalty savings are actually worth against the potential tax reduction.

What Happens If You Do Not Participate

DOR has stated that eligible taxpayers who choose not to participate may incur additional penalties on eligible periods. That is a meaningful consequence. It means the department can stack extra penalties on top of what is already owed for taxpayers it has already identified as eligible but who opted out.

There is also a practical reality the program creates for the state. DOR is projecting it will collect between $65 million and $145 million through this window. That projection is based on a detailed review of the department's inventory of eligible liabilities. If your business is in that inventory, DOR already knows about it. The amnesty is the most favorable set of terms available for resolving it.

After September 9, normal collections resume, with full penalties and the additional enforcement tools available for amnesty-eligible non-participants.

How to Participate

Log in to your INTIME account at intime.dor.in.gov and navigate to the Summary tab. Your eligible liabilities and amnesty options will be displayed there during the program window. You can pay in full or set up a payment plan. If you prefer to handle it by phone, call United Collection Bureau at 888-782-5985.

Payment options include ACH bank transfer, credit or debit card, and check. ACH has no fee.

If you need to visit a DOR district office, check availability first at in.gov/dor/about/district-offices, as most locations require an appointment.

The program closes September 9, 2026. Payment plans must be established before that date and paid in full by June 7, 2027.

Frequently Asked Questions

What is Indiana Tax Amnesty 2026? A limited program running July 15 through September 9, 2026, authorized by the Indiana General Assembly. Businesses and individuals with unpaid Indiana tax liabilities for periods ending before January 1, 2024 can pay those liabilities with a full waiver of all related penalties, interest, and collection fees.

Does the amnesty cover businesses under audit? Yes, audited liabilities are eligible provided the tax period ended before January 1, 2024 and you have not used a prior Indiana amnesty. Paying through amnesty waives your right to appeal the assessment, so the decision depends on whether the underlying tax figure is in dispute.

What if I did not receive a letter from DOR? A letter is not required. Use the eligibility tool on INTIME to check your status or call United Collection Bureau at 888-782-5985.

What happens if I miss the deadline? The window closes permanently September 9. Eligible taxpayers who do not participate may face additional penalties on top of what they already owe. DOR resumes normal collections after the window closes.

Can I set up a payment plan? Yes. Businesses with eligible liabilities of at least $500 can establish a plan by September 9, 2026, and must complete it by June 7, 2027. If the plan is not completed, amnesty is cancelled and penalties are reinstated. No extensions are available.

Does paying through amnesty release Indiana tax liens? Yes. Once eligible liabilities are paid in full, related tax warrants and liens are released.

My business sold into Indiana but never registered. Am I eligible? If you had Indiana sales tax obligations during any of the covered periods and have unpaid liabilities, you are likely eligible. Indiana's economic nexus threshold is $100,000 in annual sales or 200 separate transactions. If your business crossed either threshold and never filed, a consultation with a sales tax professional is the right starting point before you participate.

Related Reading

- What Is Tax Amnesty?: general overview of how amnesty programs work and when they make sense - Indiana Tax Information Bulletins 29 and 45 Update: Indiana-specific sales tax guidance - Voluntary Disclosure Agreements vs. Audits: Why Coming Clean Saves Money: how proactive resolution compares to audit exposure - The Ongoing Evolution of Economic Nexus and Transaction Thresholds: background on economic nexus rules including Indiana's threshold