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Most of the indentations probably won't show up in the Library's website (loc.gov) so you can ignore them either way. Line breaks created by hitting enter or return will likely show up though, so it's good to keep those. I think it makes it easier on the eye to edit with the indentations in, but it's neither required nor discouraged really.
Thanks for asking, and thanks for reviewing! We need more review activity!
-Victoria, Community Manager
Many thanks -- and review is exactly in my wheelhouse, so that's where I'm concentrating my time here.