Taxpayer allegedly purchased the second and third
recreational vehicles in 2006. The Department issued a second proposed
assessment on July 5, 2011.
IC § 6-8.1-5-2(a) states:
Except as otherwise provided in this section, the department may not
issue a proposed assessment under section 1 of this chapter more than three (3)
years after the latest of the date the return is filed, or either of the
following: (1) The due date of the
return. (2) In the case of a return
filed for the state gross retail or use tax, the gasoline tax, the special fuel
tax, the motor carrier fuel tax, the oil inspection fee, or the petroleum
severance tax, the end of the calendar year which contains the taxable period
for which the return is filed.
The three-year statute of limitations applies in the absence
of proof of fraud by clear and convincing evidence or a taxpayer's failure to
file a return. See IC § 6-8.1-5-2(f). As noted in Part I above, there is no
evidence of either of these circumstances in this case.
Because Taxpayer is not a registered retail merchant,
Taxpayer would have been required to report use tax on the 2006 and 2007 transactions
on his individual IT-40 income tax returns due on April 17, 2007 and April 15,
2008.
Any additional assessment on the 2006 transactions (even
assuming Taxpayer indeed purchased those vehicles and furthermore purchased
them on the latest day possible in 2006, December 31st) would be
barred by the statute of limitations if issued after April 19, 2010. Since the
Department issued the assessment on July 5, 2011, this assessment is barred by
the statute of limitations.
Any additional assessment on the 2007 transaction would be
barred by the statute of limitations if issued after April 15, 2011. Since the
Department issued the assessment on July 5, 2011, this assessment is also
barred by the statute of limitations.
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