Indiana’s Voluntary Disclosure Program lets eligible businesses come forward to the Indiana Department of Revenue (DOR) to resolve certain past tax obligations, generally without first identifying themselves. For an eligible sales and use tax applicant, DOR’s published terms provide a limited look-back and reduction of penalties. The program is not automatic: eligibility and the agreement’s terms depend on the business’s history and circumstances.
Indiana is comparatively simple to administer after registration: it has one statewide sales tax rate and no local sales taxes, so there are no city or county sales tax rates to calculate. Registration is handled through Indiana’s business registration channels, and sales tax returns and payments are managed through INTIME. Sales Tax Compliance USA is a people-led, done-for-you service that can help ecommerce and cross-border sellers assess exposure, prepare a VDA request, and manage the work through ongoing compliance.
What is Indiana’s Voluntary Disclosure Program?
Indiana’s Voluntary Disclosure Program is a process for businesses and individuals with an unaddressed Indiana tax obligation to approach DOR voluntarily and request an agreement to resolve it. DOR describes the program as allowing eligible applicants to come forward anonymously. A written agreement can reduce the look-back period and reduce penalties; the exact terms are determined through the application and agreement.
A VDA is not a substitute for deciding whether a tax obligation exists. It is a way to disclose and settle qualifying past liabilities under agreed terms. It also does not remove the need to register, file the required returns, pay the tax and interest due, or keep filing while the business continues to have Indiana filing obligations.
Who qualifies for an Indiana voluntary disclosure agreement?
DOR’s general qualifications include never having filed returns or registered for the tax type at issue, and not having been audited or contacted by DOR about that tax type. The program is generally for businesses without an Indiana brick-and-mortar state tax filing obligation, such as owning or leasing an office, plant, warehouse, or residence in the state. DOR specifically says unregistered remote sellers and other businesses with potential economic nexus may apply.
Eligibility is tax-specific and depends on the facts. A business that has already collected Indiana sales tax but failed to remit it may not receive the full VDA benefits. If you have filed, registered, received a notice, been audited, or collected tax, do not assume you qualify or are disqualified; ask DOR or have a representative confirm your position before disclosing identifying information.
Can you apply for an Indiana VDA anonymously?
Yes. DOR says businesses may contact it anonymously about the program, and a formal application can be made anonymously through a representative, such as a tax preparer, accountant, or attorney. The representative can communicate with DOR without initially identifying the business.
Keep the process confidential while eligibility and terms are being explored. The application must provide enough information about the tax type, Indiana activity, first activity date, property in Indiana, and tax year-end for DOR to evaluate the request. Ask the representative to confirm what information is needed and when the business’s identity must be disclosed.
Which Indiana taxes can a VDA cover?
DOR lists sales and use tax, income or franchise tax, and withholding tax among the tax types with published VDA look-back terms. A request should identify the tax type or types involved. A seller’s sales tax issue may also involve use tax, depending on the transactions and facts, so the scope should be reviewed rather than assuming the application covers every Indiana tax obligation.
This page focuses on sales and use tax for ecommerce and cross-border sellers. Other taxes may have different filing histories, look-back calculations, and requirements. Confirm with DOR or a qualified representative which tax types belong in the request and whether any separate registrations or filings are needed.
What can trigger Indiana sales tax nexus?
Physical activity in Indiana can create a sales tax obligation. Examples to review include having employees or other business activity in the state, or owning, leasing, or renting property there. The precise effect depends on the activity and applicable rules, so sellers should not treat a remote-only business as automatically outside Indiana’s requirements.
For remote sellers, Indiana requires registration when gross revenue from sales into Indiana exceeds $100,000 in the current or preceding calendar year. The sales counted include tangible personal property delivered into Indiana, products transferred electronically into Indiana, and services delivered in Indiana. Indiana removed its separate transaction-count threshold; marketplace sales and direct sales can have different registration implications, so review the seller’s actual channels and activity with DOR guidance.
How far back does Indiana’s VDA look?
For qualified applicants, DOR publishes a sales and use tax look-back of three full calendar years plus the current period. This is the program’s stated look-back, not a promise that every applicant will receive identical treatment. The agreement and the applicant’s facts determine the periods and obligations that must be addressed.
DOR notes that applicants who collected but did not remit Indiana sales tax may not qualify for full VDA benefits depending on their circumstances. Before estimating a liability, assemble sales records, exemption documentation, marketplace reports, and any prior Indiana correspondence. If the applicable period or treatment is unclear, confirm it with DOR rather than relying on an assumed cutoff.
What penalties or interest can Indiana waive?
DOR lists reduction of all penalties as a benefit of its VDA program for qualified applicants. That is a penalty benefit, not a general promise that tax or interest will be waived. The business should plan for the underlying tax and applicable interest unless DOR’s written agreement or billing establishes otherwise.
The exact position here depends on your own facts, so it is worth confirming with the state directly or talking to us about your situation. The exact amount and treatment depend on the account and agreement. Do not treat a penalty reduction as guaranteed until the terms are confirmed in writing, and do not delay addressing a possible liability while waiting for an estimate.
How to apply for an Indiana voluntary disclosure agreement
DOR accepts VDA requests in writing or online using its VDA process. A request should identify the tax type, describe the Indiana activity that created the obligation for each relevant period, state the date Indiana activity began, disclose property owned, leased, or rented in Indiana, and provide the applicant’s tax year-end, including any short periods. DOR also requests a contact person’s name, phone number, and email address.
To preserve anonymity during the formal application, use a representative and have that person communicate with DOR. The representative can help determine eligibility, organize records, describe the activity accurately, and review the proposed agreement before it is signed. Do not register or file in a way that could affect eligibility without first checking the sequence with DOR or your representative.
When to file returns and pay after approval
This one varies by seller and by state, and it is the kind of detail we check for clients as part of the service — get in touch and we will confirm where you stand. Rather than give you a figure that may not apply to you, we would check this against the state’s current guidance for your specific setup — ask us and we will tell you exactly where you stand.
Use the signed agreement and DOR’s instructions to confirm the exact periods, forms, amounts, and payment steps. Once registered, Indiana sales tax returns and payments are handled through INTIME. If records are incomplete or the filing and payment schedule is difficult to meet, raise that with DOR or your representative promptly rather than assuming an extension.
How to stay compliant after an Indiana VDA
After resolving the disclosed periods, register for the required tax account and file and pay on a go-forward basis as specified in the agreement and DOR’s instructions. Indiana uses INTIME for sales tax filing and payment. Keep transaction records, exemption support, marketplace statements, and evidence of tax collected and remitted so future returns can be reconciled to sales activity.
Indiana’s single statewide sales tax rate and lack of local sales taxes make rate calculation simpler than in states with local rates, but they do not determine whether a product or service is taxable or whether a seller has nexus. Review product taxability, sourcing, marketplace arrangements, and changes in Indiana activity regularly. Confirm current registration and filing requirements with DOR, since filing frequency and account-specific instructions should be checked for the business rather than assumed.
Get help managing your Indiana VDA from start to finish
Sales Tax Compliance USA is a done-for-you service staffed by people, not sales tax software. We can help assess whether Indiana activity may create an obligation, organize the records needed for a VDA, coordinate an anonymous inquiry through an appropriate representative, prepare the application materials, and manage the agreed filings and payments through INTIME.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
We can also help establish a practical process for ongoing Indiana compliance after the disclosure, including reviewing sales channels and maintaining filing records. No provider can guarantee acceptance, a particular waiver, or a specific outcome. The right next step is to review your facts and confirm the available options with the Indiana Department of Revenue.
Indiana VDA terms and compliance points to verify for a seller
| Issue | Indiana treatment or action |
|---|---|
| Sales and use tax VDA look-back | DOR publishes three full calendar years plus the current period for qualified applicants. |
| Income or franchise tax VDA look-back | DOR publishes three returns already on file with the Internal Revenue Service. |
| Withholding tax VDA look-back | DOR publishes three full calendar years plus the current period. |
| Remote seller economic nexus | Registration is required when gross revenue from Indiana sales exceeds $100,000 in the current or preceding calendar year; the separate transaction-count threshold has been removed. |
| Sales tax geography | One statewide rate; no local sales taxes, so no city or county rate calculation. |
| After agreement execution | |
| Ongoing administration | Use INTIME for sales tax returns and payments, and follow the filing instructions assigned to the account. |
Frequently asked questions
What is Indiana’s Voluntary Disclosure Program?
It is a process through which an eligible business or individual can approach the Indiana Department of Revenue to resolve an unaddressed Indiana tax obligation under an agreement. DOR says the program can provide a reduced look-back period and reduction of penalties for qualified applicants. The applicant must still file and pay as required by the agreement.
Who qualifies for an Indiana voluntary disclosure agreement?
DOR’s general criteria include never having filed or registered for the tax type at issue and not having been audited or contacted by DOR about that tax type. The program is generally for businesses without an Indiana brick-and-mortar filing obligation, but DOR says unregistered remote sellers and businesses with potential economic nexus may apply. Eligibility depends on the facts, including whether tax was collected but not remitted.
Can you apply for an Indiana VDA anonymously?
Yes. DOR allows anonymous contact about the program and says a formal application can be made anonymously through a representative, such as an accountant, tax preparer, or attorney. The representative can communicate with DOR while the business’s identity is withheld during the anonymous stage.
What taxes can be covered by an Indiana VDA?
DOR publishes VDA terms for sales and use tax, income or franchise tax, and withholding tax. The request should identify the tax types involved, and the scope should be confirmed with DOR because one business may have more than one Indiana tax obligation. Sales and use tax are the most relevant categories for many ecommerce sellers.
How far back does Indiana’s voluntary disclosure look-back period go?
For qualified sales and use tax applicants, DOR publishes a look-back of three full calendar years plus the current period. The agreement and the applicant’s circumstances determine the periods that must be addressed, and applicants who collected but did not remit tax may not receive full benefits.
Does Indiana waive penalties or interest under a VDA?
DOR lists reduction of all penalties as a program benefit for qualified applicants, but the exact treatment is subject to the agreement. Confirm the written terms and billing with DOR.
How do you apply for an Indiana voluntary disclosure agreement?
Submit a written or online request through DOR’s VDA process, identifying the tax type and describing the Indiana activity, start date, property in the state, and tax year-end. A representative can submit and communicate anonymously on the business’s behalf. DOR evaluates the request and issues an agreement if the applicant is accepted.
How long do you have to file and pay after an Indiana VDA is approved?
Follow the agreement for the exact periods and payment instructions.
How we handle this for you
The mechanics in Indiana are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Indiana Department of Revenue, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Indiana.
Official sources
- https://www.in.gov/dor/resources/legal/voluntary-disclosure-program/
- https://www.in.gov/dor/i-am-a/business-corp/business-faq/remote-seller-faqs/
- https://www.in.gov/dor/i-am-a/business-corp/remote-sellers/
- https://www.in.gov/dor/files/sib57.pdf
- https://www.in.gov/dor/files/sib91.pdf
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.