Indiana’s Upcoming Tax Amnesty Program at a Glance
-
Indiana will offer a tax amnesty program from July 15 to September 15, 2026 for taxpayers with outstanding state tax liabilities.
-
The program covers eligible taxes due for periods ending before January 1, 2023.
-
Participants may receive waivers of interest, penalties, and collection fees.
-
Tax liens may be released and enforcement actions halted for compliant taxpayers.
-
Additional eligibility details are expected as legislation and guidance are finalized.
The Indiana Department of Revenue has announced that it is preparing to launch a tax amnesty program running July 15, 2026, through September 15, 2026. While key details are still forthcoming, the program is expected to provide meaningful relief for eligible taxpayers with outstanding liabilities.
Importantly, additional legislation (S.B. 243) is currently pending and will help finalize certain eligibility guidelines. The Department has indicated that further guidance will be released as the program date approaches.
Legislative Framework Behind the Program
Indiana’s upcoming amnesty initiative is required under legislation enacted in 2025 and effective July 1, 2025—H.B. 1001 (P.L. 213, Laws 2025).
Under this law, the Department must establish an amnesty program for taxpayers with unpaid tax liabilities for listed taxes that were due and payable for tax periods ending before January 1, 2023. “Listed taxes” generally include those the Department is authorized to collect or administer.
The legislation provides that:
- Taxpayers may enter into a written payment program agreement for full payment of eligible liabilities.
- The voluntary payment window may not exceed eight regular business weeks, ending before the date set by the Department or January 1, 2027, whichever is earlier.
Potential Benefits of Participation
For eligible taxpayers who pay all listed taxes due or comply with the terms of an approved payment agreement, the program must provide substantial relief, including:
- Abatement of interest, penalties, collection fees, and costs otherwise applicable
- Release of tax liens
- No pursuit of civil or criminal prosecution related to the covered liabilities
- Withdrawal (or non-issuance) of assessments, demand notices, or warrants for payment related to the listed taxes
As with prior tax amnesty programs, participation may offer a limited opportunity to resolve historical exposure with significantly reduced financial consequences.
What’s Next?
Pending legislation, S.B. 243, would both conform Indiana income tax provisions to certain federal changes enacted in the “One Big Beautiful Bill Act of 2025”, and amend aspects of the upcoming amnesty program. As of February 17, 2026, the bill was reported favorably out of the House Committee on Ways and Means and continues to move through the legislative process.
Because eligibility parameters and procedural requirements may evolve, taxpayers with potential exposure should begin reviewing:
- Open tax periods ending before January 1, 2023
- Outstanding assessments or unresolved audits
- Existing payment plans
- Lien filings or collection actions
We will continue to monitor developments and share updates as the Department releases formal guidance. Taxpayers considering participation should begin evaluating their exposure now to ensure they are prepared once the amnesty window opens.
Contact Thompson Tax today to begin preparing for this important amnesty opportunity. Our team can help you evaluate eligibility, quantify exposure, and navigate the process efficiently and confidently.