in-20251126-IR-045250658NRA: DEPARTMENT OF STATE REVENUE

DEPARTMENT OF STATE REVENUE MEMORANDUM OF DECISION: 01-20251286 Individual Income Tax For The Year 2020 HOLDING Individuals established that their request for a refund was timely.

I. Individual Income Tax – Statute of Limitations.

Authority: IC 6-3-4-3; IC 6-8.1-9-1; Dep’t of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014); Wendt LLP v. Indiana Dep't of State Revenue, 977 N.E.2d 480 (Ind. Tax Ct. 2012); Scopelite v. Indiana Dep't of Local Gov't Fin., 939 N.E.2d 1138 (Ind. Tax Ct. 2010); DOR Announces Individual Filing and Payment Deadline Extensions (March 22, 2021). Taxpayers protest the Department’s denial of refund. STATEMENT OF FACTS Taxpayers are a married couple and are Indiana residents who regularly separately file Indiana individual income tax returns. Due to ongoing illness, Taxpayers failed to file Indiana individual tax returns for several years. In 2024, Taxpayers filed their 2020 Indiana individual income tax returns and requested refunds. The Indiana Department of Revenue (“Department”) denied their refund requests on the grounds that the requests were outside the statute of limitations. Taxpayers protested the denial and waived their right to an administrative hearing. This Memorandum of Decision relies on documentation provided by Taxpayers and the Department’s records. Additional facts will be provided as necessary.

I. Individual Income Tax – Statute of Limitations.

DISCUSSION Taxpayers filed their returns for the 2020 tax year on April 15, 2024, and requested a refund within the return. The Department denied the refund because the request was outside of the statute of limitations. Where a taxpayer is challenging the Department’s final determination, the taxpayer is required to provide documentation explaining and supporting its challenge. Poorly developed and non-cogent arguments are subject to waiver. Scopelite v. Indiana Dep't of Local Gov't Fin., 939 N.E.2d 1138, 1145 (Ind. Tax Ct. 2010); Wendt LLP v. Indiana Dep't of State Revenue, 977 N.E.2d 480, 486 n.9 (Ind. Tax Ct. 2012). Additionally, “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.’” Indiana Dep’t 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 are entitled to deference. IC 6-8.1-9-1(a) affords a taxpayer a statutory right to file a claim for refund. The statute provides in part: IC 6-3-4-3 requires Indiana income tax returns to be filed on “the 15th day of the fourth month following the close of the taxable year.” If a due date falls on a Saturday, Sunday, a national legal holiday recognized by the federal government, or a statewide holiday, the due date is moved to the next business day. However, due to the coronavirus pandemic, the Department extended the deadline to file tax returns for the 2020 tax year until May 17, 2021. DOR Announces Individual Filing and Payment Deadline Extensions (March 22, 2021), available at https://events.in.gov/event/dor_announces_individual_filing_and_payment_deadline_extension. According to the Department’s records, Taxpayers’ returns were received on April 15, 2024. Per IC 6-8.1-9-1(a), Taxpayers had three years from the due date of the return to request a refund. Three years from the due date of the return was May 17, 2024. It appears that the Department did not process Taxpayers’ returns until May 22, 2024, and that Taxpayers’ overpayment credits were written off because of this delay. A taxpayer is required to file a claim for refund within three years of the later of the date of payment or the due date of the return under IC 6-8.1-9-1(a). Taxpayers complied with that requirement. Thus, the Department agrees with Taxpayers that they may still receive a refund if one is warranted. FINDING Taxpayers’ protest is sustained. The Department will review its records to determine whether Taxpayers are owed a refund once their overpayment credits are no longer written off. May 27, 2025 Replaces Finding Document: New