Indiana Sales and Use Tax Protest

INDIANA SALES AND USE TAX PROTEST / REFUND CLAIM

TABLE OF CONTENTS

1. Cover and Identification Block
2. Statement of Action — Protest or Refund Claim
3. Taxpayer Information and Nexus Posture
4. Protest Track — Identification of Proposed Assessment
5. Protest Track — Items Contested
6. Statement of Facts
7. Legal Argument — Sales and Use Tax
8. Refund Track — Claim for Refund
9. Refund Track — Documentation and Computation
10. Hearing Request and Power of Attorney
11. Reservation of Tax Court Rights
12. Verification and Signature
13. Document Index
14. Indiana Sales and Use Tax Practice Notes
15. Sources and References

1. COVER AND IDENTIFICATION BLOCK

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
(and INTIME submission where available)

Date: [__/__/____]

Indiana Department of Revenue
Legal Division — Protest / Refund Section
[ADDRESS LISTED ON NOTICE OR REFUND-CLAIM INSTRUCTIONS]
Indianapolis, IN [ZIP]

Re: Indiana Sales and Use Tax — [PROTEST / REFUND CLAIM]

2. STATEMENT OF ACTION — PROTEST OR REFUND CLAIM

2.1. ☐ Protest Track. Pursuant to IC 6-8.1-5-1(b), Taxpayer files this Written Protest of the Notice of Proposed Assessment dated [__/__/____]. This Protest is filed within sixty (60) days of mailing and is timely.

2.2. ☐ Refund Track. Pursuant to IC 6-8.1-9-1, Taxpayer files this Claim for Refund of Indiana sales/use tax erroneously or illegally collected during the period(s) identified above. This claim is filed within three (3) years after the end of the calendar year that contains the taxable period and is timely.

2.3. Taxpayer requests an administrative hearing under IC 6-8.1-5-1(d) (protest) or IC 6-8.1-9-1(d) (refund) and reserves all rights to rehearing under IC 6-8.1-5-1(h) and to original tax appeal in the Indiana Tax Court under IC 33-26.

3. TAXPAYER INFORMATION AND NEXUS POSTURE

3.1. Taxpayer Profile.

3.2. Economic Nexus Analysis (IC 6-2.5-2-1(d)) — Effective January 1, 2024.

3.3. Nexus Position. Taxpayer's position regarding Indiana sales/use tax nexus is:

• ☐ Taxpayer had no physical presence and did not meet the economic nexus threshold for the periods at issue and thus had no obligation to collect.
• ☐ Taxpayer is a marketplace seller; the marketplace facilitator was obligated to collect under IC 6-2.5-8-10 / IC 6-2.5-9-3.5.
• ☐ Taxpayer was registered and properly collected/remitted; the assessment is incorrect on a transaction-level basis (see Section 5).
• ☐ Other: [DESCRIBE]

4. PROTEST TRACK — IDENTIFICATION OF PROPOSED ASSESSMENT

4.1. The Department issued a Notice of Proposed Assessment dated [__/__/____], Letter ID [####], asserting additional Indiana sales and/or use tax for the following periods:

4.2. The Notice was mailed on [__/__/____]. This Protest is filed on [__/__/____], within the 60-day period of IC 6-8.1-5-1(b).

5. PROTEST TRACK — ITEMS CONTESTED

5.1. Items Conceded (if any): [CONCESSION OR "NONE"].

5.2. Items Contested:

6. STATEMENT OF FACTS

6.1. [FACT — Taxpayer's business; nature of transactions; jurisdictions of operation.]

6.2. [FACT — Volume and dollar amount of Indiana sales by year, supporting economic nexus analysis.]

6.3. [FACT — Use of marketplace facilitators (Amazon, eBay, etc.); copies of facilitator collection certifications attached.]

6.4. [FACT — Audit history; IDR responses; description of records produced.]

6.5. [FACT — Specific transactions or exemptions contested; supporting documentation cite.]

7. LEGAL ARGUMENT — SALES AND USE TAX

7.1 Issue 1 — Economic Nexus and Wayfair Compliance

7.1.1. Applicable Law. IC 6-2.5-2-1(d), as amended effective January 1, 2024, requires a remote seller without physical presence to collect Indiana sales tax only if its gross revenue from sales into Indiana exceeds $100,000 in the current or prior calendar year. The 200-transaction prong was repealed effective January 1, 2024.

7.1.2. Constitutional Backdrop. South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018), authorized states to impose collection obligations on remote sellers with substantial nexus. Indiana's collection regime conforms to Wayfair by reference to the Streamlined Sales and Use Tax Agreement (SSUTA).

7.1.3. Application. Taxpayer's Indiana gross revenue for [YEAR] was $[____] and for [PRIOR YEAR] was $[____], both below the $100,000 threshold. Accordingly, Taxpayer had no statutory obligation to register or collect during the period at issue.

7.1.4. Conclusion. The proposed assessment is contrary to IC 6-2.5-2-1(d) and Wayfair and should be withdrawn.

7.2 Issue 2 — Marketplace Facilitator Collection (IC 6-2.5-8-10)

7.2.1. Pursuant to IC 6-2.5-8-10 and IC 6-2.5-9-3.5, a marketplace facilitator is the retail merchant for sales it facilitates and is obligated to collect and remit Indiana sales tax. A marketplace seller is not required to collect on transactions where the facilitator is the registered remitter.

7.2.2. [X]% of Taxpayer's Indiana sales during the period at issue were facilitated by [FACILITATOR NAME], which collected and remitted Indiana sales tax. Documentation is attached as Exhibit MF.

7.2.3. Taxpayer is therefore not liable for sales tax on those transactions, and the assessment should be reduced accordingly.

7.3 Issue 3 — Manufacturing / Resale / Other Exemption

7.3.1. Applicable Law. [E.G., IC 6-2.5-5-3 (manufacturing) / IC 6-2.5-5-8 (resale) / IC 6-2.5-5-25 (nonprofit) — STATE THE STATUTE.]

7.3.2. Application. Taxpayer holds valid exemption certificates (Form [ST-105 / ST-105D / ST-200]) attached as Exhibit EX and the transactions satisfy each statutory element of the exemption.

7.3.3. Conclusion. The Department's denial of the exemption is contrary to the statute and should be withdrawn.

7.4 Issue 4 — Penalty Abatement

7.4.1. Pursuant to IC 6-8.1-10-2.1(d), the negligence penalty must be waived where Taxpayer demonstrates reasonable cause. Taxpayer relied on [CPA / SOFTWARE / GOOD-FAITH INTERPRETATION OF AMBIGUOUS GUIDANCE] and acted in good faith.

8. REFUND TRACK — CLAIM FOR REFUND (IC 6-8.1-9-1)

8.1. Statutory Authority. Pursuant to IC 6-8.1-9-1, Taxpayer claims a refund of Indiana sales/use tax in the amount of $[____] plus statutory interest under IC 6-8.1-9-2.

8.2. Limitations Period. For sales and use tax, the three-year limitations period is measured from the end of the calendar year containing the taxable period (IC 6-8.1-9-1(j)). Taxpayer's claim is timely as detailed below:

8.3. Grounds for Refund. ☐ Tax paid on exempt transactions ☐ Tax paid on non-Indiana-sourced sales ☐ Tax paid in excess of liability ☐ Tax paid on transactions where marketplace facilitator also remitted ☐ Other: [____]

8.4. Refund Pass-Through. Where the refund relates to sales tax collected from customers, Taxpayer represents that it has either (a) refunded the tax to the customers (with documentation attached) or (b) holds the refund in trust to pass through to customers consistent with IC 6-2.5-6-13 and applicable case law.

9. REFUND TRACK — DOCUMENTATION AND COMPUTATION

9.1. Refund Computation Schedule (attached as Exhibit RC):

9.2. Supporting Documentation (each attached and Bates-stamped):

• ☐ Original ST-103 returns
• ☐ Amended ST-103 returns (if filed)
• ☐ Sales journals and transaction-level detail
• ☐ Exemption certificates (ST-105 / ST-105D / ST-200)
• ☐ Marketplace facilitator collection certifications
• ☐ Customer refund documentation (where applicable)
• ☐ Other: [____]

10. HEARING REQUEST AND POWER OF ATTORNEY

10.1. Taxpayer requests an administrative hearing under IC 6-8.1-5-1(d) (protest) or IC 6-8.1-9-1(d) (refund). Hearing-format preference:

• ☐ In-person (Indianapolis)
• ☐ Telephonic
• ☐ Video conference
• ☐ Decision on the written record

10.2. Indiana DOR Form POA-1 is attached as Exhibit POA, authorizing [REPRESENTATIVE NAME, INDIANA BAR / CPA NO.] to act on Taxpayer's behalf.

11. RESERVATION OF TAX COURT RIGHTS

11.1. Taxpayer expressly reserves all rights to file an Original Tax Appeal in the Indiana Tax Court pursuant to IC 6-8.1-5-1(i), IC 6-8.1-9-1(c), and IC 33-26 following the Department's final action.

11.2. Taxpayer reserves the right to de novo review without a jury (IC 33-26-6-3; Indiana Tax Court Rule 2) and to all judicial remedies otherwise available.

11.3. No concession, settlement discussion, or partial payment shall constitute a waiver of any constitutional, statutory, or procedural right, including any defense under the Commerce Clause, Due Process Clause, or Wayfair.

12. VERIFICATION AND SIGNATURE

I declare under penalty of perjury under the laws of the State of Indiana that the foregoing [Protest / Refund Claim], including all attached exhibits, is true and correct to the best of my knowledge, information, and belief.

Date: [__/__/____]

By: [________________________________]

[TAXPAYER NAME / TITLE]

Submitted by counsel:

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Indiana Bar No. [####]

Counsel for Taxpayer

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

13. DOCUMENT INDEX

14. INDIANA SALES AND USE TAX PRACTICE NOTES

• Specialized Indiana Tax Court. Indiana is one of the few states with a dedicated Tax Court (IC 33-26) that has exclusive original jurisdiction over appeals from final DOR determinations and reviews them de novo without a jury. Sales and use tax cases — particularly nexus, marketplace, and exemption disputes — are routinely litigated there. Practitioners must comply with the Indiana Tax Court Rules (separate from the Indiana Trial Rules) and the Court's e-filing requirements.
• 2024 Economic Nexus Amendment. Effective January 1, 2024, the 200-transaction prong of IC 6-2.5-2-1(d) was repealed. The sole remaining threshold is $100,000 in gross revenue from Indiana sales in the current or prior calendar year. For pre-2024 periods, the original dual threshold ($100K OR 200 transactions) still applies; do not retroactively apply the 2024 amendment.
• Marketplace facilitator regime. IC 6-2.5-8-10 and IC 6-2.5-9-3.5 make the marketplace facilitator the responsible retail merchant for facilitated sales. Marketplace sellers should not collect tax twice on the same transaction; document facilitator remittance carefully.
• Streamlined Sales and Use Tax Agreement. Indiana is a full SSUTA member. Many definitional, sourcing, and exemption-certificate issues are governed by SSUTA conformity provisions; cite both the Indiana Code and the corresponding SSUTA section where helpful.
• 60-day protest deadline. Jurisdictional. File via certified mail and INTIME. Late protests forfeit administrative review.
• Three-year refund window (IC 6-8.1-9-1(j)). For sales/use tax, the limitations period runs from the end of the calendar year containing the taxable period — not from the return due date. This shifts the deadline meaningfully in early-quarter periods.
• Refund pass-through. Indiana, like most states, requires that sales tax collected from customers be either refunded to customers or held in trust for them. Document customer refunds (or commitments to refund) at the time of filing the claim.
• Burden of proof. Under IC 6-8.1-5-1(c), the Notice is prima facie evidence; the burden of proving the proposed assessment is wrong is on Taxpayer, and that burden continues into the de novo Tax Court appeal.
• Penalty mitigation. Negligence penalties under IC 6-8.1-10-2.1 may be waived for reasonable cause, including good-faith reliance on tax software, professional advice, or ambiguous DOR guidance.
• Voluntary Disclosure Agreement (VDA). If Taxpayer has unfiled prior-year exposure, consider an Indiana DOR VDA as an alternative to (or in parallel with) protest, which can limit lookback to typically three years and waive penalties.

15. SOURCES AND REFERENCES

• Ind. Code § 6-2.5 (Gross Retail and Use Tax Act) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-2.5-2-1(d) (Economic nexus) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-2.5-5 (Exemptions) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-2.5-8-10 / § 6-2.5-9-3.5 (Marketplace facilitators) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-8.1-5-1 (Protest) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-8.1-9-1 (Refunds) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 33-26 (Indiana Tax Court) — https://iga.in.gov/laws/2024/ic/titles/33
• Indiana Tax Court — https://www.in.gov/courts/tax/
• Indiana Tax Court Rules — https://rules.incourts.gov/Content/tax/toc.htm
• Indiana DOR Remote Seller Information — https://www.in.gov/dor/business-tax/remote-seller-information/
• Indiana DOR Sales & Use Tax Refunds — https://www.in.gov/dor/i-am-a/business-corp/sales-use-tax-refunds/
• Indiana DOR Claim for Refund Process — https://www.in.gov/dor/business-tax/claim-for-refund-process/
• Indiana DOR Appeals — https://www.in.gov/dor/legal-resources/appeals/
• South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018) — https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
• Streamlined Sales Tax Governing Board — https://www.streamlinedsalestax.org/

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An Indiana-licensed tax attorney must review and customize this document before submission. The 2024 amendment to IC 6-2.5-2-1(d) (eliminating the 200-transaction prong) is a recent change; verify the controlling statutory text and Tax Court deadlines before filing.