The Indiana Department of Revenue (DOR) May 24 determined in a letter ruling that Taxpayer was incorrectly assessed for additional individual income tax. Following her divorce, Taxpayer sold her home for a loss. After Taxpayer filed her 2018 Indiana and federal income tax returns, an adjustment was made to her federal tax return due to unreported income. This prompted the DOR to assess Taxpayer for additional Indiana income tax. Taxpayer protested. The DOR found: 1) Taxpayer provided sufficient documentation to show that the federal adjustment was readjusted, and the Indiana adjustment was unnecessary; 2) during the assessment process, the DOR ...
