Indiana State Income Tax Protest

INDIANA STATE INCOME TAX PROTEST — NOTICE OF PROPOSED ASSESSMENT

TABLE OF CONTENTS

1. Cover and Identification Block
2. Statement of Protest
3. Taxpayer Information
4. Identification of Proposed Assessment
5. Items Contested and Items Conceded
6. Statement of Facts
7. Legal Argument
8. Burden of Proof and Evidence
9. Hearing Request and Power of Attorney
10. Reservation of Rights — Tax Court Appeal
11. Verification and Signature
12. Document Index
13. Indiana Practice Notes
14. Sources and References

1. COVER AND IDENTIFICATION BLOCK

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
(and electronic submission via INTIME if available)

Date: [__/__/____]

Indiana Department of Revenue
Legal Division — Protest Section
[ADDRESS SHOWN ON NOTICE OF PROPOSED ASSESSMENT]
Indianapolis, IN [ZIP]

Re: Written Protest of Proposed Assessment

2. STATEMENT OF PROTEST

Pursuant to Ind. Code § 6-8.1-5-1(b), Taxpayer hereby files this Written Protest of the Notice of Proposed Assessment identified above. This Protest is filed within sixty (60) days of the date the Notice was mailed and is therefore timely.

Taxpayer requests an administrative hearing before the Department's Legal Division pursuant to IC 6-8.1-5-1(d) and reserves all rights to (i) request a rehearing under IC 6-8.1-5-1(h) and (ii) file an original tax appeal with the Indiana Tax Court pursuant to IC 6-8.1-5-1(i) and the Indiana Tax Court Rules.

3. TAXPAYER INFORMATION

4. IDENTIFICATION OF PROPOSED ASSESSMENT

4.1. The Department issued the Notice of Proposed Assessment dated [__/__/____] (Letter ID [####]) asserting that Taxpayer owes additional Indiana adjusted gross income tax for the tax period(s) ending [__/__/____].

4.2. The proposed assessment is itemized (per the Notice) as follows:

4.3. Taxpayer received the Notice on [__/__/____]. This Protest is filed on [__/__/____], which is within the 60-day period prescribed by IC 6-8.1-5-1(b).

5. ITEMS CONTESTED AND ITEMS CONCEDED

5.1. Items Conceded (if any). Taxpayer concedes the following adjustment(s) for purposes of administrative efficiency, without prejudice to other tax periods:

• [CONCEDED ADJUSTMENT — DESCRIPTION AND AMOUNT, OR "NONE"]

5.2. Items Contested. Taxpayer protests the following adjustments (each addressed below):

6. STATEMENT OF FACTS

6.1. [FACT — e.g., Taxpayer is a domiciliary of [STATE] and filed an Indiana IT-40PNR for 20XX reporting Indiana-source income of $X.]

6.2. [FACT — relevant transaction(s), apportionment, residency, federal audit adjustments, etc.]

6.3. [FACT — describe the audit, IDR responses provided, position statements exchanged, dates of correspondence.]

6.4. [FACT — identify the specific adjustment(s) made in the Notice and how they differ from the position taken on the original return.]

7. LEGAL ARGUMENT

7.1 Issue 1 — [E.G., Credit for Taxes Paid to Another State Under IC 6-3-3-3]

7.1.1. Applicable Law. IC 6-3-3-3 permits an Indiana resident to claim a credit against Indiana adjusted gross income tax for income taxes imposed by, and paid to, another state on the same income.

7.1.2. Application. [EXPLAIN HOW THE FACTS SATISFY THE STATUTE; ATTACH PROOF OF PAYMENT TO OTHER STATE.]

7.1.3. Authority. [CITE INDIANA TAX COURT OR DEPARTMENTAL DECISIONS, LETTERS OF FINDINGS, OR REVENUE RULINGS SUPPORTING TAXPAYER'S POSITION.]

7.1.4. Conclusion. The Department's denial of the credit was contrary to IC 6-3-3-3 and should be withdrawn.

7.2 Issue 2 — [E.G., Apportionment / Sourcing Under IC 6-3-2-2]

7.2.1. Applicable Law. [STATUTORY CITATION AND TEXT.]

7.2.2. Application. [FACTS APPLIED TO LAW.]

7.2.3. Authority. [CASE LAW / LETTERS OF FINDINGS.]

7.2.4. Conclusion. [REQUESTED RELIEF.]

7.3 Issue 3 — Penalty Abatement

7.3.1. Pursuant to IC 6-8.1-10-2.1(d), the negligence penalty shall be waived if the taxpayer demonstrates that the failure to pay was due to reasonable cause and not willful neglect.

7.3.2. Reasonable cause exists here because [FACTS — RELIANCE ON COMPETENT TAX PROFESSIONAL, AMBIGUOUS GUIDANCE, FIRST-TIME ISSUE, ETC.].

7.3.3. Taxpayer requests full abatement of the [NEGLIGENCE / LATE-PAYMENT / SUBSTANTIAL UNDERSTATEMENT] penalty.

8. BURDEN OF PROOF AND EVIDENCE

8.1. Taxpayer acknowledges that under IC 6-8.1-5-1(c) the Notice of Proposed Assessment is prima facie evidence of the Department's claim and that the burden of proving the proposed assessment is wrong rests with Taxpayer.

8.2. Taxpayer respectfully submits that the documentary evidence attached as Exhibits A through [____] rebuts the proposed assessment by a preponderance of the evidence and demonstrates the correct Indiana tax liability is $[CORRECT AMOUNT].

8.3. Taxpayer reserves the right to supplement the record at the administrative hearing, on rehearing, and (if necessary) on de novo review before the Indiana Tax Court.

9. HEARING REQUEST AND POWER OF ATTORNEY

9.1. Hearing Request. Taxpayer requests an administrative hearing under IC 6-8.1-5-1(d). Taxpayer's preference for the hearing format is:

• ☐ In-person (Indianapolis)
• ☐ Telephonic
• ☐ Video conference
• ☐ Hearing waived; decision on the written record

9.2. Power of Attorney. Taxpayer's authorized representative is identified below. Indiana DOR Form POA-1 is attached as Exhibit POA.

10. RESERVATION OF RIGHTS — TAX COURT APPEAL

10.1. Taxpayer expressly reserves the right, following issuance of a Letter of Findings and (if pursued) denial of rehearing, to file an Original Tax Appeal in the Indiana Tax Court pursuant to IC 6-8.1-5-1(i), IC 33-26, and the Indiana Tax Court Rules.

10.2. Taxpayer further reserves the right to seek de novo review without a jury before the Tax Court (IC 6-8.1-5-1(i); Indiana Tax Court Rule 2) and to seek any judicial remedy authorized by Indiana law.

10.3. Nothing in this Protest, in any settlement discussion, or in any concession of an item shall be construed as a waiver of any constitutional, statutory, or procedural right.

11. VERIFICATION AND SIGNATURE

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

Date: [__/__/____]

By: [________________________________]

[TAXPAYER NAME / TITLE IF SIGNING FOR ENTITY]

Submitted by counsel:

[LAW FIRM NAME]

By: [________________________________]

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

Counsel for Taxpayer

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

12. DOCUMENT INDEX

13. INDIANA PRACTICE NOTES

• Specialized Indiana Tax Court. Indiana is one of the few states with a dedicated, specialized state tax court. The Indiana Tax Court has exclusive subject-matter jurisdiction over original tax appeals from final determinations of the Indiana Department of Revenue and the Indiana Board of Tax Review (IC 33-26-3-1). The Tax Court sits in Indianapolis (with statewide travel sittings) and reviews DOR matters de novo and without a jury. Practitioners must comply with the Indiana Tax Court Rules (separate from the Trial Rules) and the Court's electronic-filing requirements.
• Sixty-day protest deadline. The 60-day deadline under IC 6-8.1-5-1(b) is jurisdictional. Late protests divest the Department of authority to consider the matter. File via certified mail (or INTIME) and retain proof of timely filing.
• Letter of Findings; rehearing window. After hearing (or on the written record), the Department issues a Letter of Findings. A taxpayer dissatisfied with the Letter of Findings has 30 days under IC 6-8.1-5-1(h) to request a rehearing. Rehearing is discretionary.
• Original Tax Appeal deadline. The deadline for filing the original tax appeal in the Indiana Tax Court is set by IC 6-8.1-5-1(i) and the Tax Court Rules. Practitioners should compute and calendar the deadline conservatively from the Letter of Findings (or denial of rehearing) and verify the controlling subsection — the deadline is jurisdictional.
• Burden of proof. Under IC 6-8.1-5-1(c), the Notice is prima facie evidence that the assessed tax is owed; the burden of proving the proposed assessment is wrong is on the taxpayer, and that burden continues through the de novo Tax Court appeal.
• Payment under protest. Indiana does not generally require pre-payment to protest; however, interest under IC 6-8.1-10-1 continues to accrue during the protest. Consider paying contested amounts under protest to stop the interest meter while preserving refund-claim rights under IC 6-8.1-9-1.
• Confidentiality. Indiana tax return information is confidential under IC 6-8.1-7-1. Mark all submissions accordingly and redact SSNs where possible.
• Taxpayer Bill of Rights. The Indiana Taxpayer Bill of Rights (IC 6-8.1-1.5) and the Taxpayer Rights Advocate Office (IC 6-8.1-11-3) provide additional procedural protections, including the right to representation and the right to recordings/transcripts of hearings.

14. SOURCES AND REFERENCES

• Ind. Code § 6-8.1-5-1 (Proposed assessment; protest; hearing; Letter of Findings; rehearing; appeal) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-8.1-9-1 (Refund claims) — https://iga.in.gov/laws/2024/ic/titles/6
• Ind. Code § 6-8.1-1.5 (Taxpayer Bill of Rights) — 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 Appeals page — https://www.in.gov/dor/legal-resources/appeals/
• Indiana DOR Protest Guide — https://www.in.gov/dor/files/dor-protest-guide.pdf
• Indiana DOR Taxpayer Bill of Rights — https://www.in.gov/dor/resources/tax-library/taxpayer-bill-of-rights/
• Indiana DOR Form POA-1 (Power of Attorney) — https://www.in.gov/dor/tax-forms/

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Indiana and admitted to practice before the Indiana Tax Court must review and customize this document before submission. Statutes, rules, and Tax Court procedures change frequently; verify all citations and deadlines (especially the 60-day protest, 30-day rehearing, and Tax Court appeal deadlines) before use.