The Indiana Department of Revenue (DOR) encourages businesses and individuals who are not in compliance with Indiana tax laws to voluntarily and anonymously come forward to request participation in our voluntary disclosure agreement (VDA) program.
Generally, the program is only available to customers that do not have a brick-and-mortar state tax filing obligation in Indiana, either by owning or leasing real property, including an office, plant, warehouse or residence.
Note that unregistered remote sellers that have met one of the registration thresholds are not currently eligible to receive a VDA unless they had a physical presence in Indiana prior to October 1, 2018. However, remote sellers that have met one of the registration thresholds, but have not yet registered, may request a Remote Seller Compliance Agreement using the VDA process.
Benefits of the Program
- Written agreement to decrease the look-back period
- Reduction of all penalties
- Avoid an unplanned audit
- Never filed tax returns in Indiana for tax type in question.
- Never registered for tax type in question.
- Never been audited or contacted by DOR about tax type in question.
- Applicant is not an Indiana housed business and/or does not have brick-and-mortar state tax filing obligation.
VDA Look-Back Periods for Qualified Applicants
- Sales/Use Tax – Three full calendar years plus the current period.
- Income/Franchise Tax – Three returns already on file with the Internal Revenue Service.
- Withholding Tax – Three full calendar years plus the current period.
Note: Periods will be extended for taxes that have been collected or withheld.
How to Apply
Customers may submit the VDA-1 form in writing or online. To submit in writing, go to https://www.in.gov/dor/3731.htm, or click on VDA-1 to submit online. At a minimum, the following information should be included:
- Name, phone number and email address of contact person.
- Tax type(s) for which request is being made.
- Description of Indiana center creating activity for all years involved.
- Date of first Indiana activity.
- Description of any property (real, tangible or intangible) either owned, leased or rented in Indiana.
- Applicant's tax year-end. Please include information about any short periods as well.
- Type of income tax returns filed for federal tax purposes.
- Information about other tax types currently being filed with DOR.
- Whether any tax for the requested tax type has been collected or withheld.
- Estimated liability amount for each tax type.
Multistate Tax Commission (MTC)
DOR does not currently participate in any MTC programs.
- Return signed agreement to DOR within 30 days of issuance.
- File all returns and pay all liabilities within 90 days of the execution of the agreement.
- Pay calculated interest within 20 days of being billed by DOR.
- File on a go-forward basis per the agreement or until customer no longer has Indiana center creating activity.
- Audit customer for all periods included in the agreement.
- Cancel the agreement if the applicant or customer has any false information in their request and be subject to audit for all periods that DOR deems appropriate.
- Cancel the agreement if the applicant fails to comply with terms of the agreement.
Voluntary Disclosure Office
Indiana Department of Revenue
1411 E. 85th Ave.
Merrillville, IN 46410
Phone: (317) 233-6036
Fax: (219) 769-9363
Email: VoluntaryDisclosure @dor.in.gov
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