Taxpayer protests refunds denied for 2007 and 2008. The
refunds represented amounts withheld by Taxpayer's employer. Taxpayer states
that his employer erroneously withheld Indiana tax on his wages and did not
correct the error until 2011. Taxpayer further states that he was required to
pay California tax, penalty, and interest on the wages on which Indiana tax was
erroneously withheld. The issue is whether the refund request was timely
submitted.
Under IC § 6-3-4-8(h), a taxpayer must file an original Indiana
individual income tax return within two years of the due date of that return in
order to claim a refund for taxes withheld by an employer. For 2007, the due
date of the return was April 15, 2008. For 2008, the due date of the return was
April 15, 2009.
Taxpayer did not file an original Indiana individual income
tax return for 2007 and 2008 until August 31, 2011. The latest date under IC §
6-3-4-8(h) for filing the returns was April 15, 2010 (for the 2007 tax year)
and April 15, 2011 (for the 2008 tax year).
While the Department understands Taxpayer's issues trying to
resolve his erroneous withholding and the fact that Taxpayer has been required
to pay a portion of his tax twice, Indiana law has a statutory requirement to
file an Indiana income tax return to seek the erroneously-withheld taxes within
a prescribed time period. Taxpayer did not file his returns within that time
period. Thus, Taxpayer's protest of his 2007 and 2008 refund claims was
properly denied.
http://www.in.gov/legislative/iac/20120725-IR-045120415NRA.xml.html
