Indiana Offering Voluntary Disclosure Initiative for Certain Online Sellers

The Indiana Department of Revenue (DOR) is offering a one-time, limited time voluntary disclosure initiative for out-of-state online retailers that have inventory located in third-party Indiana warehouses and sell to Indiana customers. The voluntary disclosure initiative runs through December 31, 2018. In order to qualify for the initiative, a retailer must meet all of the following qualifications:

• Has inventory located in a third-party Indiana warehouse and sells to Indiana customers;
• Never filed tax returns in Indiana for the tax type in question;
• Never registered for the tax type in question;
• Has never been audited or contacted by DOR about the tax type in question; and
• Is not an Indiana resident that has clearly defined sales tax and income tax filing obligations in the state.

The program applies to Indiana sales, use and income taxes. Qualified participants will receive a written agreement that decreases the look-back period, have penalties and interest waived, and avoid an unplanned audit. The look-back period for sales and use tax is one full calendar year (2017) plus the current period. The look-back period for income tax is calendar or fiscal year 2017. For additional details and to apply for the voluntary disclosure initiative, click here to visit the Indiana DOR webpage. (News Release, Indiana Department of Revenue, May 2, 2018)