Indiana DOR Determines Individual Income Taxpayer Entitled to Partial Abatement of Late Filing, Underpayment Penalties

The Indiana Department of Revenue (DOR) March 27 determined in a letter ruling that Taxpayer was entitled to an abatement of individual income tax penalties. Taxpayer owned a small percentage of a company that was sold. Taxpayer requested, and received, extensions for filing income tax returns for tax year 2021. The DOR issued a Notice of Proposed Assessment for additional income tax, an underpayment of estimated tax penalty, a late payment penalty, and interest. Taxpayer challenged the penalty assessments. The DOR noted that: 1) Taxpayer’s income was greatly increased in 2021 due to the sale of the company, which was ...