Indiana DOR Determines Applicability of Throwback Rule on Company’s Taxable Sales Outside Jurisdiction

The Indiana Department of Revenue (DOR) Aug. 28 issued a letter ruling on the applicability of the state throwback rule to Taxpayer’s sales outside the jurisdiction. Taxpayer filed an amended tax return requesting a corporate income tax refund. The DOR found that certain sales to other states hadn’t been included in the numerator for apportioning Indiana income. Using the throwback rule, the DOR denied the refund and imposed a ten percent penalty. Taxpayer protested. The DOR found that Taxpayer had a nexus with certain states during certain tax years and those sales should be excluded from the numerator of Taxpayer’s ...