Indiana DOR Determines Partnership Was Entitled to Individual Income Tax Penalty Abatement

The Indiana Department of Revenue (DOR) Nov. 1 determined in a letter ruling that Taxpayer was entitled to abatement of a penalty for individual income tax purposes. Taxpayer, a partnership, filed the federal and state income tax returns utilizing the respective forms. On audit, the DOR assessed penalties and interest on unpaid taxes due to Taxpayer’s non-compliance with withholding and composite return filings for non-resident partners, for tax year 2021. Taxpayer protested. The DOR found: 1) it didn’t timely receive the entire composite tax payment due; 2) Taxpayer didn’t substantiate the inaccuracy of the DOR’s assessment; and 3) Taxpayer formally ...