Indiana DOR Finds Taxpayer Failed to Properly Withhold Taxes, Denies Protest

The Indiana Department of Revenue (DOR) Sept. 26 found that Taxpayer failed to properly withhold state and county corporate income taxes and, therefore, denied Taxpayer’s protest. The DOR determined that Taxpayer didn’t withhold state or county withholding tax from its employees’ wages. Taxpayer argued that, although it didn’t meet its responsibility to withhold the tax, the DOR should waive Taxpayer’s failure to withhold state and county income tax because Taxpayer erroneously relied on third-party advice and didn’t understand the requirements of the withholding tax law. Specifically, Taxpayer stated that the third-party told it to treat its workers as independent contractors ...