Online Sellers Voluntary Disclosure Initiative

The Indiana Department of Revenue (DOR) is offering certain retailers the opportunity to participate in a one-time voluntary disclosure initiative. This initiative is tailored to meet the unique needs of retailers that have inventory located in third-party Indiana warehouses and sell to Indiana customers.

Many of these retailers – selling goods to Indiana customers through service providers –  have both income and sales/use tax obligations.

This special program has been extended to June 30, 2019, and offers out-of-state retailers the opportunity to enter into a voluntary disclosure agreement (VDA) with unique terms.

Benefits of this Initiative

  • Written agreement to decrease the look-back period
  • Agreement to waive penalties
  • Avoid an unplanned audit

Qualifications

  • Applicant has inventory located in a third-party Indiana warehouse and sells to Indiana customers.
  • 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.

Note: Not available to Indiana residents who already have a clearly defined sales tax and income tax filing obligation in the state.

Special Initiative VDA Look-Back Periods for Qualified Applicants

Sales/Use Tax – Two full calendar years (2017 and 2018) plus the current period
Income Tax – Calendar or fiscal years 2017 and2018

How to Apply

Applicants should apply by submitting Form VDA-2 by email, mail, or fax at:

Voluntary Disclosure Office
Indiana Department of Revenue
100 N. Senate Ave., IGCN 241
Indianapolis, IN 46204
Phone: (317) 233-6036
Fax: (317) 234-5531
Email: VoluntaryDisclosure@dor.in.gov

After an application has been submitted, DOR will review and if approved, return an executed agreement to the customer.  The customer will then have 90 days to register online for sales/use tax, file their 2017 and 2018 sales/use tax and income tax returns, and make any payments required. Specific instructions on how to register, file and pay these taxes will be included in the executed agreement.

Questions concerning the VDA Initiative can be directed to Eric Troop or Doug Klitzke.