Tax Audit Protest and Appeal — Indiana

Tax Audit Protest and Appeal (INDIANA)

Quick-Reference Summary

PART A — INFORMAL CONFERENCE / HEARING REQUEST LETTER

[TAXPAYER LEGAL NAME]
[Street Address]
[City, IN ZIP]
SSN / FEIN: [____________________]
TID No.: [____________________]
Telephone: [(___) ___-____]
Email: [____________________]

Date: [__/__/____]

VIA U.S. CERTIFIED MAIL, RETURN RECEIPT REQUESTED

Indiana Department of Revenue
Attn: Legal Division, MS 102
100 N. Senate Avenue, Room N248
Indianapolis, IN 46204

Re: Written Protest of Notice of Proposed Assessment dated [__/__/____] — Taxpayer ID [_____]

Dear Hearing Officer:

This letter and the attached State Form 56317 (Protest Submission Form) constitute the Taxpayer's timely written protest of the above-referenced Notice of Proposed Assessment under IC 6-8.1-5-1(d) and 45 IAC 15-3-2. This protest is filed within 60 days of the date of the Notice.

I. Election Under Form 56317

The Taxpayer elects the following option on Form 56317:

☐ Administrative Hearing (telephonic preferred) — Taxpayer requests an oral hearing at the Indianapolis Government Center North or by telephone;
☐ Final Determination Without Hearing based on the written record;
☐ Settlement Conference with the Hearing Officer; or
☐ Best Information Available Review (where applicable).

II. Statement of Issues in Dispute

The Taxpayer disputes the Proposed Assessment on the following grounds:

1. [Issue 1 — e.g., disallowance of resale exemption]: [Concise statement of dispute and the legal/factual basis.]

2. [Issue 2]: [Concise statement.]

3. [Issue 3]: [Concise statement.]

III. Statement of Facts

[Set forth the operative facts in numbered paragraphs.]

1. [Fact 1.]
2. [Fact 2.]
3. [Fact 3.]

IV. Legal Authority

[Identify the controlling Indiana Code provisions, Indiana Administrative Code, IDOR Information Bulletins, Letter Rulings, Tax Court decisions, and other authority.]

V. Documentation in Support

The following documents are submitted in support of this protest (and will be supplemented with additional documents prior to or at the hearing):

VI. Power of Attorney

Power of Attorney (State Form 49357 — Form POA-1) authorizing [REPRESENTATIVE NAME] to represent the Taxpayer is attached.

VII. Statute-of-Limitations Reservation

The Taxpayer reserves all defenses based on the statute of limitations under IC 6-8.1-5-2 and 45 IAC 15-5-7, including objection to any periods that fall outside the applicable 3-year (or 6-year, where 25% understatement is alleged) period.

Respectfully submitted,

________________________________
[TAXPAYER OR AUTHORIZED REPRESENTATIVE]
[Title]

Enclosures:

• State Form 56317 (Protest Submission Form)
• State Form 49357 (POA-1)
• Copy of Notice of Proposed Assessment
• Supporting documentation (indexed)

PART B — FORMAL PROTEST: WRITTEN PROTEST BRIEF

WRITTEN PROTEST AND BRIEF IN SUPPORT

STATE OF INDIANA
DEPARTMENT OF REVENUE — LEGAL DIVISION

In the Matter of:

[TAXPAYER LEGAL NAME]
TID No. [____________________]
Tax Periods: [____________________]
Proposed Assessment No.: [____________________]

I. Jurisdictional Statement

This written protest is timely filed within 60 days of the Notice of Proposed Assessment as required by IC 6-8.1-5-1(d). The Taxpayer requests an administrative hearing under IC 6-8.1-5-1(d) and 45 IAC 15-3-2.

II. Statement of the Case

[Concise narrative.]

III. Issues Presented

a. Whether [Issue 1].

b. Whether [Issue 2].

c. Whether penalties imposed under IC 6-8.1-10 should be waived under 45 IAC 15-11-2 for reasonable cause.

IV. Statement of Facts

[Numbered factual allegations with exhibit citations.]

V. Argument

A. The Proposed Assessment Is Wrong as a Matter of Law

[Develop legal argument. Cite IC, IAC, IDOR Information Bulletins, Tax Court decisions (e.g., USAir, Inc. v. Indiana Dep't of State Revenue; Indiana Dep't of State Revenue v. AT&T Communications).]

B. The Proposed Assessment Is Not Supported by the Facts

[Argue the factual record.]

C. Penalties Should Be Waived for Reasonable Cause

Under 45 IAC 15-11-2(c), the Department shall waive penalties on a showing that the taxpayer's failure was due to reasonable cause and not willful neglect. The Taxpayer has reasonable cause based on: [reliance on professional advice; reasonable interpretation of unclear law; ordinary business care; etc.]

D. Statute-of-Limitations Defense

The portion of the Proposed Assessment relating to [period] is barred by the 3-year limitations period of IC 6-8.1-5-2 and 45 IAC 15-5-7. The Department's reliance on the 6-year extended period under 45 IAC 15-5-7(e) is misplaced because [no 25% understatement; income is not "adjusted gross income, supplemental net income, or county adjusted gross income"; etc.].

VI. Burden of Proof

The Taxpayer acknowledges the prima facie evidence rule of IC 6-8.1-5-1(c). The Taxpayer carries its burden by the evidence presented herein and at the hearing.

VII. Relief Requested

WHEREFORE, the Taxpayer respectfully requests that the Hearing Officer:

a. Sustain the protest in full and abate the Proposed Assessment;
b. Alternatively, sustain the protest in part as identified above;
c. Waive all penalties under 45 IAC 15-11-2;
d. Recompute interest accordingly; and
e. Grant such other relief as is appropriate.

Respectfully submitted,

________________________________
[TAXPAYER OR COUNSEL]
[Indiana Bar No., if attorney]
Date: [__/__/____]

PART C — APPEAL COVER LETTER AND ORIGINAL TAX APPEAL TO THE INDIANA TAX COURT

[TAXPAYER / PETITIONER NAME]
[Address]
[Telephone] / [Email]

Date: [__/__/____]

VIA HAND DELIVERY OR INDIANA E-FILING SYSTEM

Clerk of the Indiana Tax Court
200 W. Washington Street, Statehouse 115
Indianapolis, IN 46204

Re: Original Tax Appeal — [PETITIONER] v. Indiana Department of State Revenue

Dear Clerk:

Enclosed for filing is the original Original Tax Appeal of [PETITIONER] from the Letter of Findings (and Supplemental Letter of Findings, if applicable) issued by the Indiana Department of State Revenue on [__/__/____]. Filing fee in the amount of $[_____] is included. This appeal is timely filed within 60 days of the Letter of Findings as required by IC 6-8.1-5-1(h).

Service will be made on the Indiana Department of State Revenue (c/o Legal Division) and the Indiana Attorney General within the time required by Tax Court Rule 4.

Respectfully,

________________________________
[PETITIONER OR COUNSEL]
Indiana Bar No. [_____]

ORIGINAL TAX APPEAL

STATE OF INDIANA
INDIANA TAX COURT

Cause No. [Assigned by Clerk]

1. Parties

a. Petitioner [PETITIONER LEGAL NAME] is a [resident of / corporation organized under the laws of] [_____] with principal residence/place of business at [______________].

b. Respondent is the Indiana Department of State Revenue, an agency of the State of Indiana.

2. Jurisdiction and Venue

a. This Court has exclusive original jurisdiction over this Original Tax Appeal under IC 33-26-3-1 and IC 33-26-6-2.

b. This appeal is taken under IC 6-8.1-5-1(h) [or IC 6-8.1-9-1, for a refund-denial appeal] from the Letter of Findings issued by the Department on [__/__/____].

c. This appeal is timely filed within 60 days of the Letter of Findings.

d. Venue is proper in this Court under IC 33-26-1-1.

3. Tax Type and Periods

4. Procedural History

a. Petitioner filed return(s) for the periods in dispute on [__/__/____].

b. The Department conducted an audit and issued a Notice of Proposed Assessment on [__/__/____] in the amount of $[_____].

c. Petitioner filed a timely written protest with the Department's Legal Division on [__/__/____].

d. An administrative hearing was held on [__/__/____] before Hearing Officer [_____].

e. The Department issued its Letter of Findings on [__/__/____], denying the protest [in whole / in part].

f. ☐ Petitioner requested rehearing on [__/__/____] and the Department issued its Supplemental LOF on [__/__/____]. ☐ Not applicable.

5. Statement of the Case

[Concise narrative.]

6. Issues Presented

a. Whether [Issue 1].

b. Whether [Issue 2].

c. Whether penalties were properly imposed under IC 6-8.1-10.

7. Statement of Facts

[Numbered factual allegations.]

8. Errors of the Department

The Department erred in:

a. [Specific error citing Indiana Code / regulation.]

b. [Specific error.]

9. Prayer for Relief

WHEREFORE, Petitioner respectfully requests that the Court:

a. Set the matter for trial de novo without a jury under IC 33-26-6-2;
b. Reverse the Department's Letter of Findings;
c. Order abatement of $[_____] in tax;
d. Order refund of $[_____] plus interest under IC 6-8.1-9-2 (if tax has been paid);
e. Order waiver of penalties under IC 6-8.1-10-2.1(d);
f. Assess costs against the Department under IC 33-26-6-2; and
g. Grant such other relief as is just.

Respectfully submitted,

________________________________
[PETITIONER OR COUNSEL]
Indiana Bar No. [_____]
[Address] / [Phone] / [Email]
Date: [__/__/____]

VERIFICATION

I affirm under the penalties for perjury that the foregoing representations are true.

________________________________
[PETITIONER OR AUTHORIZED OFFICER]
Date: [__/__/____]

CERTIFICATE OF SERVICE

I hereby certify that on [__/__/____], I served a copy of this Original Tax Appeal by [certified mail / IEFS] on:

Indiana Department of State Revenue
Attn: Legal Division
100 N. Senate Avenue, Room N248
Indianapolis, IN 46204

Office of the Attorney General
Indiana Government Center South, 5th Floor
302 W. Washington Street
Indianapolis, IN 46204

________________________________
[Signature]

PART D — PRE-FILING CHECKLIST

Statute-of-Limitations and Deadline Verification

☐ Identified return filing date for each period in dispute
☐ Identified Notice of Proposed Assessment date
☐ Confirmed 3-year SOL under IC 6-8.1-5-2 / 45 IAC 15-5-7
☐ Identified whether 6-year SOL applies (25% income understatement)
☐ Confirmed unlimited SOL does NOT apply (no fraud; return was filed)
☐ Calendared 60-day protest deadline from Proposed Assessment
☐ Calendared 60-day Tax Court appeal deadline from LOF (or supplemental LOF)
☐ Calendared 30-day rehearing window from LOF

Pre-Protest Preparation

☐ Audit workpapers obtained from Audit Division
☐ All audit-period returns and amended returns assembled
☐ Documentation for disputed items (exemption certificates, invoices, contracts, etc.) gathered
☐ Reasonable-cause facts assembled for penalty waiver
☐ POA-1 (State Form 49357) executed

Protest Submission Package

☐ State Form 56317 (Protest Submission Form) completed
☐ Election (hearing vs. no-hearing vs. settlement conference) made
☐ Written protest cover letter drafted (Part A)
☐ Written protest brief drafted (Part B)
☐ Exhibits indexed (A–Z)
☐ Package sent by certified mail, return receipt requested
☐ Hearing date confirmed in writing

Administrative Hearing

☐ Hearing Officer assigned and confirmed
☐ Telephonic vs. in-person election made
☐ Hearing folder prepared (issue outline, key documents tabbed)
☐ Witnesses identified
☐ Post-hearing extension period (2 weeks; longer with extension form) calendared

Letter of Findings

☐ LOF reviewed for each issue addressed
☐ Decision: accept / request rehearing / appeal to Tax Court
☐ Rehearing request filed within 30 days if new evidence available
☐ Tax Court petition prepared if appeal elected

Indiana Tax Court Appeal

☐ Original Tax Appeal drafted (Part C)
☐ Filing fee paid
☐ Filed within 60 days of LOF or supplemental LOF
☐ Service made on IDOR Legal Division and Indiana Attorney General per Tax Court Rule 4
☐ Verification signed
☐ Calendar set for Answer (30 days), discovery, dispositive motions

Payment / Refund Considerations

☐ Decision: protest without payment (IC 6-8.1-5-1 track) or pay and claim refund (IC 6-8.1-9-1 track)
☐ Interest accrual under IC 6-8.1-10-1 calculated
☐ If paid: refund claim filed within 3 years (IC 6-8.1-9-1(a))

Post-Decision

☐ Tax Court decision reviewed
☐ Motion to correct error filed within 30 days (T.R. 59)
☐ Appeal to Indiana Court of Appeals filed within 30 days if adverse
☐ Refund + interest tracked if successful

Sources and References

• IC 6-8.1-5-1 — Proposed assessments and protests: https://iga.in.gov/laws/2024/ic/titles/6/articles/8.1/chapters/5/sections/6-8.1-5-1
• IC 6-8.1-5-2 — Statute of limitations: https://iga.in.gov/laws/2024/ic/titles/6/articles/8.1/chapters/5/sections/6-8.1-5-2
• IC 6-8.1-9-1 — Refund claims: https://iga.in.gov/laws/2024/ic/titles/6/articles/8.1/chapters/9/sections/6-8.1-9-1
• IC 33-26 — Indiana Tax Court: https://iga.in.gov/laws/2024/ic/titles/33/articles/26
• 45 IAC 15-5-7 — Statute of limitations on assessments: https://www.law.cornell.edu/regulations/indiana/45-IAC-15-5-7
• 45 IAC 15-3-2 — Protest procedures: https://iar.iga.in.gov/
• IDOR Appeals Page: https://www.in.gov/dor/resources/legal/appeals/
• State Form 56317 (Protest Submission Form): https://forms.in.gov/Download.aspx?id=13292
• State Form 49357 (POA-1): https://forms.in.gov/Download.aspx?id=7460
• Indiana Tax Court: https://www.in.gov/courts/tax/
• IDOR Protest Guide: https://www.in.gov/dor/resources/legal/

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