in-20260729-IR-045260244NRA: LETTER OF FINDINGS: 41-20252292

DEPARTMENT OF REVENUE LETTER OF FINDINGS: 41-20252292 International Registration Plan For the Distance Reporting Period July 1, 2022, to June 30, 2023 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 available adequate records. In accordance with IRP guidelines, the Department issued a proposed assessment. Taxpayer protested the proposed assessment and submitted additional documentation that was not analyzed in the Department's initial audit. 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 sent in by Taxpayer with its protest submission 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, 2022, to June 30, 2023. The Department based its determination that additional IRP fees were due on the fact that adequate records were not provided during the initial audit. Taxpayer's assessed records consisted of manually sourced documentation including dispatch logs and unit summaries. Taxpayer utilized a vehicle tracking system that produced information for the audit review. Taxpayer's distance records were missing the required necessary information such as distance by jurisdiction, beginning/ending odometer readings, total distances, routes of travel, latitude/longitude locations, and jurisdiction line readings. The audit analysis also determined that no internal controls or processes were presented to capture and check required trip information for appropriate content; verify the accuracy of the trip distance; check trip information for continuity of dates, travel points, and odometer readings; and check trip information for jurisdictional continuity. Therefore, an adequate audit could not be conducted and the Department, as provided under the IRP, imposed an additional assessment on Taxpayer. 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 submitted additional documentation that was not integrated into the initial audit. Taxpayer records were related to both the International Fuel Tax Association, Inc. 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 supplemental 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 Indiana Code. Therefore, Taxpayer has met the burden imposed by IC 6-8.1-5-1(c) of proving the proposed assessment incorrect, to the extent verified by the Department's review of the documentation supplied in the protest process. 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. May 29, 2026 Replaces Finding Document: New