Excerpts of Revenue's Determination follow:
Taxpayer is an out-of-state business doing business in Indiana. Taxpayer filed Indiana adjusted gross income tax ("AGIT") returns for the 2005, 2006, and 2007 tax years. Later, Taxpayer filed amended AGIT returns for those years. The Indiana Department of Revenue ("Department") conducted an audit for these years and determined that Taxpayer owed additional Indiana AGIT. The Department therefore issued proposed assessments for Indiana AGIT and interest.
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Taxpayer protests the Department's determination that the two entities in question should be included in determining Taxpayer's 2005-07 Indiana AGIT. The Department's audit report provided a short explanation of its position, but did not refer to any statute or regulation upon which it based its determination. While IC § 6-8.1-5-1(c) provides that the notice of proposed assessment is prima facie evidence that the Department's claim for the unpaid tax is valid, in the instant case the audit report only states the Department's position. There is no legal reference provided for the Department's position.
While the Department's position might be correct, Taxpayer has provided a bare rebuttal of the Department's bare statement of position. Taxpayer has therefore met the burden imposed under IC § 6-8.1-5-1(c) regarding the inclusion of the two related entities in Taxpayer's 2005-07 AGIT amended returns.
