in-20260826-IR-045260292NRA: MEMORANDUM OF DECISION: 02-20241562

DEPARTMENT OF STATE REVENUE MEMORANDUM OF DECISION: 02-20241562 Corporate Income Tax For The Year 2022 HOLDING Company established that the Department’s adjustment of its refund request was incorrect. ISSUE

I. Corporate Income Tax – Burden of Proof.

Authority: I.R.C. § 63; IC 6-3-1-3.5; IC 6-3-1-11; IC 6-3-2-1; IC 6-3-2-2; IC 6-8.1-9-1; Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014); 45 IAC 15-9-2. Taxpayer protests the denial of its partial refund request. STATEMENT OF FACTS Taxpayer is an Indiana based company (“Company”). Taxpayer requested a refund. After reviewing Company’s tax records, the Indiana Department of Revenue (“Department”) issued an adjustment to its tax credits. In September of 2023, Department issued a letter notifying Taxpayer of these adjustments. The Department partially denied Taxpayer’s refund request. Taxpayer protested the partial denial and requested a resolution without an administrative hearing. This Memorandum of Decision results. Additional facts will be provided as necessary.

I. Corporate Income Tax – Burden of Proof.

DISCUSSION The Department made an adjustment to Taxpayer’s refund, reducing the amount Taxpayer claimed in its refund request. Taxpayer protested the adjustment. In support of its protest, Taxpayer provided copies of its tax forms for the 2022 tax year. As a threshold issue, “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. IC 6-8.1-9-1(a) affords a taxpayer the right to file a claim for refund if the taxpayer determines that it has paid more tax than the amount is legally due for a particular taxable period. “A claim for refund can only be initiated pursuant to IC [§] 6-8.1-9-1” because the Department “has no legal method of generating a claim for refund.” 45 IAC 15-9-2(b). The refund claim must include certain verifiable information: (i) the amount of the refund to which the person is entitled, (ii) the reasons why the person is entitled to the refund, (iii) the tax period for which the overpayment is claimed, and (iv) the year and date of the overpayment. 45 IAC 15-9-2(d). The claim for refund is required to be filed on the form prescribed by the Department. Id. Indiana imposes a tax on “the adjusted gross income derived from sources within Indiana of every corporation[.]” IC 6-3-2-1(b). Indiana calculates a corporation’s gross income by starting with a corporation’s federal adjusted gross income (“FAGI”) and making Indiana-specific adjustments. Indiana imposes a tax on the adjusted gross income of every corporation that has adjusted gross income derived from sources within Indiana. IC 6-3-2-1(b); IC 6-3-2-2. To compute the income subject to Indiana corporate income tax, Indiana adopts a multistep process to calculate a corporation’s taxable Indiana adjusted gross income. Caterpillar, Inc., 15 N.E.3d at 581. Indiana generally follows the tax principles established in the federal law. IC 6-3-1-11. In determining the taxpayer’s Indiana adjusted gross income, Indiana first refers to I.R.C. § 63 as the starting point. When used “[i]n the case of corporations,” the term “‘adjusted gross income’ shall mean the same as ‘taxable income’ (as defined in Section 63 of the Internal Revenue Code)” with modifications. IC 6-3-1-3.5(b). As part of their protest, Taxpayer provided copies of its relevant tax forms to the Department. The forms demonstrate that the Department’s adjustment of the refund amount was incorrect. The documents establish that Taxpayer properly remitted the accurate amount of tax as required under 45 IAC 15-9-2(d). The Department would like to note that had these documents been included with Company’s original tax return, no adjustments would have been made in the first place. Taxpayer’s protest is sustained to the extent that the Department will adjust their refund according to the documents provided by the Taxpayer. FINDING Taxpayer’s protest is sustained. June 23, 2026 Replaces Finding Document: New