in-20260729-IR-045260243NRA: LETTER OF FINDINGS: 41-20251779

DEPARTMENT OF REVENUE LETTER OF FINDINGS: 41-20251779 International Registration Plan For the Distance Reporting Period July 1, 2021, to June 30, 2022 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 adequate records from the Taxpayer. In accordance with IRP guidelines, the Department issued a proposed assessment. Taxpayer protested the proposed assessment. 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, 2021, to June 30, 2022. The Department based its determination that additional IRP fees were due on the fact that Taxpayer did not have sufficient documentation available for review. Taxpayer provided distance records during the initial audit. These documents and records included its vehicle unit summary, driver trip sheets, as well as data sourced from Taxpayer's computer routing system. Included with this submission was information such as beginning and ending trip dates, trip origins and destinations, unit identification number, as well as beginning and ending odometer readings. However, Taxpayer's odometer readings were not trip specific, but rather listed by quarter for the distance reporting period. While Taxpayer had an internal control or process in place to maintain trip sheets, Taxpayer did not log trip-specific information or distance to support its reported distance figures. Additionally, the Department found that Taxpayer had elements of other necessary controls or processes pertaining to IRP reporting requirements, but all included weaknesses in terms of sufficiency for audit. 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 provides: 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 records that were not evaluated by the Department during the initial audit. 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, consisting of distance reports collected by a third-party electronic logging device, 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 IC 6-8.1-5-1(c). 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 28, 2026 Replaces Finding Document: New