in-20260729-IR-045260228NRA: LETTER OF FINDINGS: 01-20251020

DEPARTMENT OF STATE REVENUE LETTER OF FINDINGS: 01-20251020 Individual Income Tax For The Year 2023 HOLDING Individual met the burden of proving the Department’s assessment was incorrect. ISSUE

I. Individual Income Tax – Assessment.

Authority: IC 6-3-1-3.5; IC 6-3-2-1; IC 6-3-2-2; IC 6-8.1-5-1. Taxpayer protests the Department’s assessment of additional individual income tax for 2023. STATEMENT OF FACTS At the beginning of 2023, Taxpayer lived in Tennessee. For tax year 2023, Indiana Department of Revenue (“Department”) reviewed the W-2 submitted with his income tax return, which listed an Indiana address, and issued a Notice of Proposed Assessment for Indiana income tax for the entire 2023 tax year. Taxpayer protested and an administrative hearing was held. This Letter of Finding results. Additional facts will be issued as necessary.

I. Individual Income Tax – Assessment.

DISCUSSION The Department determined Taxpayer owed additional individual income tax after reviewing his Indiana W-2. Taxpayer disagreed and protested the assessment. During the hearing, Taxpayer provided documentation to support his position. As a threshold issue, it is the taxpayer’s responsibility to establish that the existing tax assessment is incorrect. A proposed assessment is prima facie evidence that the Department’s claim for unpaid tax is valid. IC 6-8.1-5-1(c). The burden of proving that the proposed assessment is wrong rests with the person against whom the proposed assessment is made. Id. Indiana imposes a tax “upon the adjusted gross income of every resident person, and on that part of the adjusted gross income derived from sources within Indiana of every nonresident person.” IC 6-3-2-1(b). (Emphasis added). Also, IC 6-3-2-2(a) provides in relevant part: In this case, Taxpayer received the two W-2s from his employer. The first W-2 stated Taxpayer’s physical address was Indiana. After review and based on the information contained on Taxpayer’s initial W-2, the Department attributed all of Taxpayer’s income to Indiana for tax year 2023. However, the Taxpayer later received a corrected W-2 from his employer with his Tennessee address. Taxpayer explained in his hearing and established with supporting documentation that he lived in Tennessee throughout 2023. Thus, under IC 6-3-2-1(b) and IC 6-3-2-2(a), Taxpayer’s income listed on the corrected W-2 was not Indiana sourced income subject to tax in Indiana. Taxpayer has met the burden imposed under IC 6-8.1-5-1(c) of proving the proposed assessment wrong. FINDING Taxpayer’s protest is sustained. May 29, 2026 Replaces Finding Document: New