Indiana DOR Determines Restaurant Income Tax Withholding Tax Assessment Incorrect

The Indiana Department of Revenue (DOR) determined in a supplemental letter of findings that a restaurant business was operated solely by its two owners and the Department’s assessment of withholding tax for two waiters and a cook was incorrect. The Department had determined that the taxpayer owed additional withholding tax after an audit based upon certain checks, a Paycheck Protection Program loan as well as a grant from the municipality where the restaurant was located. The taxpayer protested that it had no employees. The Department found that the loan and grant were not indicative that the taxpayer had employees other ...