in-20260729-IR-045260238NRA: FINAL ORDER DENYING REFUND: 03-20251581

DEPARTMENT OF STATE REVENUE FINAL ORDER DENYING REFUND: 03-20251581 Withholding Tax For The Tax Year 2020 HOLDING Business’ refund request was not timely because the request was made outside the statute of limitations. ISSUE

I. Withholding Tax – Refund and Statute of Limitations.

Authority: IC 6-3-4-8; IC 6-8.1-9-1; Dept. of State Revenue v Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014). Taxpayer protests the denial of refund. STATEMENT OF FACTS Taxpayer is an Indiana S corporation that regularly collects and remits withholding on behalf of its employees. Taxpayer filed the WH-3 annual return for 2020 and requested a refund. The Department denied the refund request because it was filed outside the statute of limitations. The Taxpayer protested the denial of the refund. An administrative hearing was held. This Order Denying Refund results. Additional facts will be provided as necessary.

I. Withholding Tax – Refund and Statute of Limitations.  

DISCUSSION In 2024, Taxpayer filed its WH-3 return for tax year 2020 and requested a refund. The Department denied the refund request. The Taxpayer protested the denial of the refund. An administrative hearing was held. As a threshold issue, a taxpayer is required to provide documentation explaining and supporting his or her challenge that the Department’s position is wrong. “[W]hen [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). IC 6-8.1-9-1(a) affords a taxpayer a statutory right to file claim for refund. This statute provides in part: An employer is required to file Form WH-3, the annual reconciliation form, no later than thirty-one days after the end of the calendar year. IC 6-3-4-8(e). IC 6-8.1-9-1(a) is clear that refund requests must be made within three years of the date of the payment or the date the return is due. As the result of a tax lien, Taxpayer learned in 2024 that a WH-3 return was not filed for 2020. Taxpayer corrected the error and filed the WH-3 on September 6, 2024. Because Taxpayer paid the majority of its employees via 1099s, the filing of the WH-3 return requested a refund. The Department denied the refund stating the request was outside the three-year statute of limitations under IC 6-8.1-9-1. The last day of January in the following calendar year for tax year 2020 was January 31, 2021. Three years from that date was January 31, 2024. The three-year statute of limitations for requesting a refund expired on Wednesday, January 31, 2024. Taxpayer did not file the amended Form WH-3 until September 26, 2024. This was beyond the statutorily allowed statute of limitations as required by IC 6-8.1-9-1(a). In summary, Taxpayer’s refund request was not timely and made outside of the prescribed statute of limitations. Taxpayer’s protest is denied. FINDING Taxpayer’s protest is denied. May 29, 2026 Replaces Finding Document: New