in-20260930-IR-045260331NRA: LETTER OF FINDINGS: 41-20251192

DEPARTMENT OF REVENUE LETTER OF FINDINGS: 41-20251192 International Registration Plan For the Distance Reporting Period July 1, 2020, to June 30, 2021 HOLDING Indiana trucking business was not able to meet its burden of proving the proposed assessment was wrong; therefore, the assessment remains as issued. 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. The Department held an administrative hearing with the Taxpayer. This Letter of Findings is therefore based on the materials sent in 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, 2020, to June 30, 2021. The Department based its determination that additional IRP fees were due on the fact that Taxpayer did not have sufficient or adequate documentation available for review. Taxpayer utilized an Electronic Logging Device ("ELD") and maintained unit odometer readings to track distance during the audit period. Included in Taxpayer's distance reporting information were beginning and ending trip dates, trip origins and destinations, beginning as well as ending odometer readings, ELD-system readings for latitude and longitude, unit identification numbers, along with some total distances. A substantial portion of the required distance reporting was missing for all of Taxpayer's vehicles and for multiple units. For some units, Taxpayer only provided the aforementioned distance data for the entire audit period as opposed to quarterly or trip-specific breakdowns. In addition, Taxpayer lacked internal controls or processes to verify trip information for all appropriate content, jurisdictional continuity, complete accuracy of trip distance, as well as continuity of dates, travel points and odometer readings. 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 permitted under the International Fuel Tax Association, Inc.'s ("IFTA") Articles of Agreement along with the assessment for IRP. Taxpayer provided additional documentation after the conclusion of the administrative hearing. The Department reviewed Taxpayer's supplemental documentation and determined that the fuel records provided pertained to Taxpayer's IFTA protest. These records lacked the necessary information needed to meet the distance reporting requirements of IRP. Taxpayer did not provide adequate distance records during the protest process following the administrative hearing. 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. As a reminder to Taxpayer, IRP, Article X-1005(a) specifically states that the records maintained by a registrant under Section 1000 shall be adequate to enable the base jurisdiction to verify the distances reported in the registrant's application for apportioned registration and to evaluate the accuracy of the registrant's distance accounting system for its fleet. IRP, Article X-1010 establishes that records containing the following elements shall be accepted by the base jurisdiction as adequate under Section 1005(a): the beginning and ending dates of the trip to which the records pertain; the origin and destination of the trip; the route of travel; the beginning and ending reading from the odometer, hubodometer, ECM, or any similar device for the trip; the total distance of the trip; the distance traveled in each jurisdiction; and the vehicle identification number of vehicle unit number. In this case, Taxpayer's records are deficient under the requirements of IRP, Article X-1005(a). Taxpayer has not met the burden of proving the proposed assessment wrong, as required by IC 6-8.1-5-1(c). As provided above, it is Taxpayer's responsibility to maintain specific, detailed, and accurate records concerning jurisdictional travel to comply with the IRP and IC 6-8.1-5-1(c). FINDING Taxpayer's protest is respectfully denied. July 10, 2026 Replaces Finding Document: New