in-20250827-IR-045250416NRA: DEPARTMENT OF STATE REVENUE

DEPARTMENT OF STATE REVENUE MEMORANDUM OF DECISION: 04-20251622; 04-20251623 Sales Tax For The Year 2020 HOLDING Individuals established that their request for a refund was timely.

I. Sales Tax – Statute of Limitations.

Authority: IC 6-2.5-2-1; IC 6-2.5-6-1; IC 6-2.5-6-14.1; 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); 45 IAC 15-9-2. Taxpayers protest the Department’s denial of refund. STATEMENT OF FACTS Taxpayer is an out-of-state corporation that regularly files sales tax returns with the Indiana Department of Revenue (“Department”). On October 3, 2023, Taxpayer amended its Indiana sales tax returns for September 2020 and October 2020. In May 2024, the Department denied a refund request related to the amended sales tax returns on the grounds that the request was outside the statute of limitations. Taxpayer protested the denial, and the Department held an administrative hearing. This Memorandum of Decision results. Additional facts will be provided as necessary.

I. Sales Tax – Statute of Limitations.

DISCUSSION Taxpayer argues that due to the inadvertent collection of sales tax from an exempt customer, it paid more sales tax than what was legally due. Taxpayer then filed amended sales tax returns and requested refunds within the amended returns, which it argues was timely. The Department denied the request for refund because the Department determined that 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 if the taxpayer determines that it has paid more tax than the amount is legally due for a particular taxable period. The Department generally “has no legal method of generating a claim for refund. A claim for refund can only be initiated pursuant to IC [§] 6-8.1-9-1.” 45 IAC 15-9-2(b). To obtain a refund, the person must file the claim with the Department “within three (3) years after the later of . . . [t]he due date of the return [or the] date of payment.” IC 6-8.1-9-1(a). The claim must include certain verifiable information such as the amount of the refund to which the person is entitled, the reasons why the person is entitled to the refund, the tax period for which the overpayment is claimed, and 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. 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. IC 6-8.1-9-1(a). Indiana imposes a sales tax on all retail transactions made in Indiana. IC 6-2.5-2-1(a). The purchaser is “liable for the tax on the transaction” and “shall pay the tax to the retail merchant as a separate added amount . . . . ” IC 6-2.5-2-1(b). Retail merchants who collect sales tax in a given month must file a return within thirty days of the end of the month if they collected no more than $1,000 and within twenty days of the end of the month otherwise. IC 6-2.5-6-1(a). Taxpayer timely filed its sales tax returns with the Department for September 2020 and October 2020. As originally filed, Taxpayer should have collected and remitted more than $1,000 in both months, so the return for September 2020 was due on October 20, 2020, and the return for October 2020 was due November 20, 2020. Taxpayer amended both returns on October 3, 2023, resulting in less sales tax due than Taxpayer had paid. The returns were therefore amended timely. Taxpayer is therefore not barred by the statute of limitations from receiving a refund for these periods. Taxpayer provided the exemption certificate that its exempt customer gave to it, and the exemption certificate was properly completed. Taxpayer also presented documentation showing that it refunded the improperly collected sales tax to its customer. Taxpayer is therefore entitled to a full refund as requested per IC 6-2.5-6-1 and IC 6-8.1-9-1. The Department will take this opportunity to remind Taxpayer that the proper way to request a refund for overpayment of sales tax is to file a Claim for Refund form (“GA-110L”) once Taxpayer has determined that it has overpaid sales tax and amended its returns accordingly. If Taxpayer is requesting a refund of sales tax that it collected from a customer, Taxpayer must also show that it refunded the sales tax to its customer per IC 6-2.5-6-14.1. FINDING Taxpayers’ protest is sustained. June 6, 2025 Replaces Finding Document: New