Indiana DOR Determines Taxpayer Proved Sales and Use Tax Audit Assessment Was Overstated, Reduces Assessment

The Indiana Department of Revenue (DOR) Feb. 28 determined in a letter ruling that Taxpayer, a company doing business in the state, demonstrated that its gross retail sales and use tax assessment was partially overstated. Upon audit for the tax years at issue, the DOR found that Taxpayer failed to pay retail sales tax or remit use tax on tangible property purchased for its business. The DOR imposed additional tax, interest, and penalty on Taxpayer. Upon Taxpayer’s protest, the DOR noted: 1) Taxpayer’s payments for internet access in February, April, and October 2020 were nontaxable transactions; 2) Taxpayer’s documentation demonstrated ...