This past May, the Indiana General Assembly passed House Bill 1001, an appropriations bill covering the fiscal period from July 1, 2025, through June 30, 2027. As a less populous state, Indiana operates its budget on a biannual basis. The legislation requires the state Department of Revenue to establish an eight-week tax amnesty program that ends no later than Jan. 1, 2027. Assuming this amnesty program follows the same terms as previous programs, taxpayers should be able to settle all types of delinquent Indiana state taxes under the program, except for certain taxes imposed on state-sanctioned gambling activities.
The legislation indicates that this program will apply to taxes owed and payable prior to 2023. Additionally, taxpayers will not be eligible for the program if they participated in any tax amnesty program permitted under similar laws that were effective in 2005 or 2015.
Similar to previous Indiana amnesty programs, in exchange for coming forward, disclosing and paying the unpaid taxes, and complying with all other amnesty provisions, the state agrees to the following:
- abate all interest, penalties, and collection fees that would otherwise be due on the delinquent taxes,
- release any liens imposed,
- not seek any civil or criminal prosecution for unpaid taxes, and
- not issue any formal assessments, demand notices, or warrants for the taxes.
Note that taxpayers who participate in the program will not be eligible for any future state tax amnesty programs, and failing to pay the taxes due for any tax period invalidates the amnesty granted for that tax period.
As explained in the Department of Revenue’s accompanying guidance, this amnesty program is expected to begin and end sometime during the second half of 2026, with more details to be provided in the upcoming year. If you have any questions or if you are interested in participating to resolve your delinquent taxes in Indiana; or in the alternative, you believe you do not qualify and want to consider a voluntary disclosure for unfiled taxes with the state instead, please contact your CBIZ tax professional.
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