DISCUSSION
Taxpayer protests the imposition of the penalty on Taxpayer's
failure to timely file forms W-2 and WH-3 on behalf of its employees. This
penalty was imposed pursuant to IC § 6-8.1-10-6, which provides for a ten
dollar ($10) penalty for each information return submitted late. A form W-2 and
a form WH-3 are informational returns within the scope of the statute.
IC § 6-8.1-10-6 states:
(a) As used in this section, "information return" means
the following when a statute or rule requires the following to be filed with
the department:
(1) Schedule K-1 of form IT-20S, IT-41, or IT-65.(2) Any form, statement, or schedule required to be filed with the department with respect to an amount from which tax is required to be deducted and withheld under IC 6 or from which tax would be required to be deducted and withheld but for an exemption under IC 6.
(3) Any form, statement, or schedule required to be filed with the Internal Revenue Service under 26 CFR 301.6721-1(g) (1993). The term does not include form IT-20FIT, IT-20S, IT-20SC, IT-41, or IT-65.
(b) If a person fails to file an information return required by the department, a penalty of ten dollars ($10) for each failure to file a timely return, not to exceed twenty-five thousand dollars ($25,000) in any one (1) calendar year, is imposed.
(c) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return.
In this instance, Taxpayer has established that it qualifies for
waiver of the penalty.
FINDING
Taxpayer's
protest of the assessment of penalty is sustained.
http://www.in.gov/legislative/iac/20120229-IR-045120076NRA.xml.pdf
