The Indiana Department of Revenue (Department) has posted frequently asked questions (FAQs) on Indiana's tax amnesty program, which will run from July 15, 2026, through September 9, 2026 (see Tax Alerts 2026-0392 and 2025-1121) and applies to unpaid tax liabilities due for tax periods ending before January 1, 2024 (see Tax Alert 2026-0714). The FAQs address program eligibility, how to participate in the program, benefits of the program, and other matters related to the amnesty.

Participants in the amnesty program that pay all amnesty-eligible liabilities in full will have all related penalties, interest and collection fees waived. Individuals and businesses eligible to participate in the amnesty program, but who decide not to participate, will be subject to double penalties on eligible periods if assessed by the Department. There is no fee to participate in the program.

The FAQs indicate that liabilities for most taxes managed by the Department owed for tax periods ending before January 1, 2024, are eligible for the program. However, individuals and businesses that participated in either the 2005 or 2015 amnesty programs are not eligible to participate in the upcoming tax amnesty for 2026. The Department indicated it will make an "eligibility tool" available on INTIME (Indiana Taxpayer Information Management Engine) beginning May 18, 2026, to allow taxpayers to determine program eligibility.

Taxpayers with an assessed tax resulting from a recent audit are still eligible for the amnesty program if they did not participate in the prior amnesty programs. If the taxpayer has an appeal or protest in progress before the start of the amnesty program, the taxpayer is in "hold status." The liability being appealed or protested will not be subject to the double penalty if the taxpayer chooses not to participate in amnesty during the appeal/protest process; however, the taxpayer will not benefit from the waiver of penalties, interest, and collection fees unless they pay the liability during the amnesty period. Taxpayers that decide to pay the liability under the amnesty program waive their right to further appeal/protest the liability.

Implications

There is a small window of time to participate in the Indiana tax amnesty program. Eligible taxpayers should consider the Department's guidance on the program in determining whether to participate in the 2026 amnesty program. Eligible taxpayers that participate in, and comply with the terms of, the amnesty program will have otherwise applicable penalties, interest and fees waived. Failure to participate in the amnesty program may result in the Department imposing double penalties on amnesty eligible taxes.

The Department is expected to issue additional guidance in the near future.