Source: http://www.in.gov/legislative/iac/20111228-IR-045110763NRA.xml.html
Timestamp: 2016-10-24 16:08:07
Document Index: 497773461

Matched Legal Cases: ['§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6', '§ 6']

40-20110379P.LOF
Letter of Findings: 40-20110379P
I. Tax Administration – Failure to File Quarterly Estimated Payment Penalty.
Authority: IC § 6-2.3-6-1; IC § 6-8.1-10-2.1; 45 IAC 15-11-2.
Taxpayer protests the imposition of penalties for failure to file quarterly utility receipts tax returns.
Taxpayer is a limited liability company with operations in Indiana. The Indiana Department of Revenue determined that Taxpayer had failed to file quarterly returns with estimated payments for utility receipts tax ("URT") for 2009. Taxpayer did file an annual return and included payment for the entire year at that point. The Department imposed penalty for failure to file the quarterly returns. Taxpayer protests that it had been informed by a third party that Indiana had changed to an annual reporting system for URT and that it has now adjusted its reporting system to the appropriate quarterly method. Also, Taxpayer points out that when it did file the yearly return, it included all URT due and that there is no assessment for any unpaid URT. Taxpayer also refers to its prior and subsequent compliance record in support of its position that it has been a responsible taxpayer. Therefore, Taxpayer believes that it has acted reasonably and requests a waiver of the penalty in question.
In addition, the penalty as to any underpayment of tax on an estimated return shall be assessed only on the difference between the actual amount paid by the taxpayer on the estimated return and twenty-five percent (25[percent]) of the taxpayers's [ sic] final utility receipts tax liability for the taxable year.
Since IC § 6-2.3-6-1(f) refers to IC § 6-8.1-10-2.1(b) regarding the imposition of penalty, it is important to review that statute.
The Department imposed the penalty in question under IC § 6-2.3-6-1(f). IC § 6-2.3-6-1(f) refers to IC 6-8.1-10-2.1(b) for the imposition of penalty. Since IC § 6-8.1-10-2.1(d) allows waiver of penalty imposed under IC § 6-8.1-10-2.1, waiver of the penalty is allowed if the taxpayer in question can show that the failure to file a return, pay the full amount of tax shown on the person's return, timely remit tax held in trust, or pay the deficiency determined by the department was due to reasonable cause and not due to willful neglect. In this case, Taxpayer showed a good history of compliance along with the fact that it remitted the full amount of URT due with its annual return. Therefore, Taxpayer has shown reasonable cause as required by 45 IAC 15-11-2(c). However, the Department takes this opportunity to remind Taxpayer that it is now aware of its filing responsibilities and any subsequent failure to comply with those requirements is unlikely to be considered reasonable.
DIN: 20111228-IR-045110763NRA
Composed: Oct 24,2016 12:08:07PM EDT