in-20260729-IR-045260232NRA: LETTER OF FINDINGS: 01-20251415

DEPARTMENT OF STATE REVENUE LETTER OF FINDINGS: 01-20251415 Tax Administration For the Tax Period Ending December 31, 2023 HOLDING Indiana Resident failed to demonstrate that he was not responsible for the statutory interest. ISSUE

I. Tax Administration – Statutory Interest.

Authority: IC 6-8.1-5-1; IC 6-8.1-8-1.5; IC 6-8.1-10-1; Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014); Express Scripts Inc. v. Indiana Dep’t of State Revenue, 170 N.E.3d 273 (Ind. Tax Ct. 2021); Scopelite v. Indiana Dep’t of Local Gov’t Fin., 939 N.E.2d 1138 (Ind. Tax Ct. 2010); Wendt LLP v. Indiana Dep’t of State Revenue, 977 N.E.2d 480 (Ind. Tax Ct. 2012). Taxpayer requested that the Department waive the statutory interest. STATEMENT OF FACTS Taxpayer is an Indiana resident who filed an Indiana income tax return for the tax year 2023. The Indiana Department of Revenue (“Department”) reviewed and determined that Taxpayer did not pay the full amount of tax due. The Department issued a notice of proposed assessment for the tax deficiency, including penalty and statutory interest. Taxpayer paid under protest and requested that the Department waive the penalty and interest without an administrative hearing. In late February 2025, the Department reviewed and abated the penalty. This final determination ensues based on the documents provided and addresses the remaining issue under protest — namely, the assessment of approximately $190 interest.

I. Tax Administration – Statutory Interest.

DISCUSSION Taxpayer protested the assessment and requested that the Department waive the penalty and interest. The Department reviewed and abated the penalty only. As such, the issue is whether Taxpayer’s supporting documents demonstrated that he was entitled to the abatement of interest. Pursuant to IC 6-8.1-5-1(b), “[i]f the [D]epartment reasonably believes that a person has not reported the proper amount of tax due, the [D]epartment shall make a proposed assessment of the amount of the unpaid tax on the basis of the best information available to the [D]epartment. The amount of the assessment is considered a tax payment not made by the due date and is subject to IC 6-8.1-10 concerning the imposition of penalties and interest . . . . ” Notices of proposed assessment issued by the Department are prima facie evidence that the Department’s assessments are correct; the burden of proving the assessment is incorrect rests with the taxpayer. IC 6-8.1-5-1(c). Poorly developed or 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). The taxpayer, when submitting evidence as part of the taxpayer’s protest, needs to specify and explain the portions of the evidence that taxpayer believes to be relevant. As the Indiana Tax Court has previously noted (in the context of a summary judgment motion): “the Court will not consider” exhibits “on the off chance that it might find, on its own and undirected, some fact that supports” a claim, and “the Court is not required to search for specific facts on which” a party relies. Express Scripts Inc. v. Indiana Dep’t of State Revenue, 170 N.E.3d 273, 279 (Ind. Tax Ct. 2021). When an agency is charged with enforcing a statute, courts defer to the agency’s reasonable interpretation of that statute “over an equally reasonable interpretation by another party.” Indiana Dep’t of State Rev. v. Caterpillar, Inc., 15 N.E.3d 579, 583 (Ind. 2014). Further, under IC 6-8.1-10-1(a), “[i]f a person fails to file a return for any of the listed taxes, fails to pay the full amount of tax shown on the person’s return by the due date for the return or the payment, or incurs a deficiency upon a determination by the department, the person is subject to interest on the nonpayment.” IC 6-8.1-8-1.5 establishes an order to apply the partial payment “whenever a taxpayer makes a partial payment on the taxpayer’s tax liability.” Statutory interest is mandatory when the taxpayer failed to pay the full amount of tax owed before due. IC 6-8.1-10-1(a). The Department is not permitted to waive interest unless one of three very specific circumstances are met, as provided by IC 6-8.1-10-1(e). Here, according to the Protest Submission Form, Taxpayer protested the assessment concerning the tax year 2023. In his letter, however, Taxpayer stated the following: Based on his statement, Taxpayer seemingly suggested that he protested the assessment for 2024 and was not responsible for the interest concerning the tax year 2024. Upon review, Taxpayer is mistaken. Specifically, the Department did not assess Taxpayer any interest for the tax year 2024. The above-mentioned refund matter in Taxpayer’s letter was for the tax year 2022 based on the verifiable records, which is beyond the scope of this protest. Even if, assuming that Taxpayer contended that he was not responsible for the interest for the tax year 2023, the Department is not authorized to waive the statutory interest in this case. None of the three circumstances outlined under IC 6-8.1-10-1(e) apply here. FINDING Taxpayer’s protest concerning the imposition of statutory interest for 2023 is denied. May 1, 2026 Replaces Finding Document: New