Indiana DOR Issues Letter of Findings Sustaining Taxpayer’s Protest Against Additional Income Tax Assessment

The Indiana Department of Revenue (DOR) issued a letter of findings stating that DOR’s additional income tax assessment on taxpayer for the 2018 tax year was wrong. Taxpayer resides outside Indiana but has income attributable to business activity in Indiana. Taxpayer filed 2018 part-year and full-year non-resident income tax returns reporting $54,000 as Indiana income, but DOR adjusted that amount to $13,00,000. As a result, DOR issued taxpayer a notice of proposed assessment of approximately $420,000 for income tax due, and $42,000 in penalties and $ 60,000 in interest. DOR held that base on the evidence presented, taxpayer’s Indiana income ...