Revenue Finds Taxpayer Sufficiently Showed Taxes Paid on Purchase

Taxpayer is an Indiana periodontal practice. The Department of Revenue ("Department") conducted an audit of Taxpayer's business records and found that … Taxpayer had purchased a $519 item designated as a "fixed asset" and concluded that Taxpayer owed sales/use tax.

At the time of its protest, Taxpayer submitted a June 2009 original invoice for the transaction. The invoice indicated that the item cost $945, the delivery cost was $45, and that sales tax was $68. The total price on the invoice was $1,038.

Taxpayer explains that this particular invoice "was paid for in two installments of $519 each...." The $519 transaction included in the audit report was apparently one of the two installment payments made for the June 2009 purchase.

Based on the information provided, Taxpayer has met its burden under IC § 6-8.1-5-1(c) of establishing that the $519 included sales tax and that the audit should be adjusted to reflect the fact that tax was included in the original purchase price.

http://www.in.gov/legislative/iac/20120627-IR-045120358NRA.xml.html