in-20260826-IR-045260279NRA: LETTER OF FINDINGS: 41-20251252

 DEPARTMENT OF STATE REVENUE LETTER OF FINDINGS: 41-20251252 International Registration Plan For the Distance Reporting Period July 1, 2021, to June 30, 2022 HOLDING Indiana trucking business was able to provide additional documents to reduce the proposed assessment; the Department will issue a supplemental audit bill. ISSUE

I. International Registration Plan - Assessment.

Authority: IC 6-6-4.1-14; IC 6-8.1-5-1; IC 6-8.1-5-4; IC 9-28-4-6; IRP, Article X-1000; IRP, Article X-1005; IRP, Article X-1010; IRP, Article X-1015; IRP, Article X-1065; Indiana Dept. of State Revenue v. Rent-A-Center East, Inc., 963 N.E.2d 463 (Ind. 2012); Lafayette Square Amoco, Inc. v. Indiana Dept. of State Revenue, 867 N.E.2d 289 (Ind. Tax Ct. 2007); Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014). Taxpayer protests the assessment of additional International Registration Plan (“IRP”) fees. STATEMENT OF FACTS Taxpayer is an Indiana-based motor carrier business that provides trucking services. The Indiana Department of Revenue (“Department”) audited Taxpayer related to the IRP, an agreement providing for registration reciprocity among member jurisdictions, including Indiana. However, the Department could not complete a standard audit due to a lack of adequate records from the Taxpayer. In accordance with IRP guidelines, the Department issued a proposed assessment. Taxpayer protested the proposed assessment. After initially requesting an administrative hearing, Taxpayer subsequently waived its right to a hearing while maintaining its protest. This Letter of Findings is therefore based on the materials provided by Taxpayer during the protest process and on the Department's records. Additional facts will be provided as necessary.

I. International Registration Plan - Assessment.

DISCUSSION Taxpayer protests the imposition of additional IRP fees for the distance reporting period of July 1, 2021, to June 30, 2022. The Department based its determination that additional IRP fees were due on the fact that Taxpayer had insufficient distance records available for review. Taxpayer initially submitted distance and fuel records during the audit for the period from September 6, 2023, to August 1, 2024, but not for the tax period under audit. Distance records for the audit period were not provided; therefore, an audit of distance could not be conducted. Additionally, Taxpayer did not exhibit to the Department that it had internal controls or processes in place pertaining to IRP reporting requirements. Therefore, the Department imposed an additional assessment on Taxpayer for having inadequate distance records. As a threshold issue, it is Taxpayer's burden to establish that the existing proposed assessment is incorrect. As stated in IC 6-8.1-5-1(c): See also Indiana Dept. of State Revenue v. Rent-A-Center East, Inc., 963 N.E.2d 463, 466 (Ind. 2012); Lafayette Square Amoco, Inc. v. Indiana Dept. of State Revenue, 867 N.E.2d 289, 292 (Ind. Tax Ct. 2007). The Department notes that, “when [courts] examine a statute that an agency is 'charged with enforcing . . . [courts] defer to the agency's reasonable interpretation of [the] statute even over an equally reasonable interpretation by another party.'” Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579, 583 (Ind. 2014). Thus, all interpretations of Indiana tax law contained within this decision shall be entitled to deference. The Department first refers to IC 6-6-4.1-14, which states: IC 9-28-4-6 states: IC 6-8.1-5-4 states: IRP, Article X-1065 states: IRP, Article X-1000 states: IRP, Article X-1005 states: IRP, Article X-1010 states: IRP, Article X-1015 states: Taxpayer protested the proposed assessment and provided records, for the appropriate distance reporting period, that were not included in the initial audit. Taxpayer records were related to both the International Fuel Tax Association, Inc.'s Articles of Agreement and IRP components of its protest. Under IRP, Article X-1005 and IC 6-8.1-5-4, it is Taxpayer's responsibility to maintain specific, detailed, and accurate information concerning its fuel purchases and jurisdiction miles. A preliminary examination of Taxpayer's submitted records indicates that the Department would most likely recalculate the amount of IRP fees due. The Department will review the documentation and determine if any recalculation is necessary, to the extent established by the newly assessed documentation and its adequacy of Taxpayer meeting its reporting requirement burden imposed by the IRP and the IC 6-8.1-5-1(c). FINDING Taxpayer's protest is sustained to the extent explained above but denied in part as Taxpayer is not entitled to a waiver of the full amount. June 18, 2026 Replaces Finding Document: New