Indiana Tax Amnesty: Pay Up or Pay More!

Indiana is set to implement a tax amnesty program from July 15 to September 15, marking the first such opportunity in over a decade for businesses and individuals with overdue taxes.

During this eight-week period, taxpayers who voluntarily pay delinquent tax liabilities incurred before January 1, 2024, will be exempt from civil and criminal penalties, including late fees and interest.

Revenue projections for the amnesty program show a wide range, with estimates from the Legislative Services Agency between $156 million and $277 million for the state's general fund. The State Budget Agency's estimate is lower, at $124 million for the upcoming fiscal year.

This initiative was enacted by legislators to increase state revenue, following a previous dismal tax collections forecast. The state has contracted with United Collection Bureau to help promote the program and increase participation.

Indiana's last tax amnesty program in 2015 collected $188.5 million, with a significant portion coming from out-of-state businesses. Those who participated in the 2005 or 2015 amnesty programs are not eligible for the current offering.