Taxpayer is a company doing business in Indiana. Taxpayer failed to timely file returns required by the Department. Taxpayer was assessed a penalty for 2010 and 2011. Taxpayer filed a protest regarding the penalty.
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Taxpayer argues that it had reasonable cause for failing to timely file the returns based upon the fact that Taxpayer was in bankruptcy. Taxpayer states that his accountant had his pertinent paperwork, and that the accountant would not turn over the information to Taxpayer. Taxpayer states that Taxpayer "had to have my bankruptcy attorney and trustee threaten legal action against the accounting firm to get my returns." Taxpayer provided the Department with a copy of a letter that was sent from Taxpayer's attorney to Taxpayer's accountant. The letter, in part, requests Taxpayer's "documentation and the records...." Based upon the information Taxpayer has provided, the Department finds that Taxpayer has established reasonable cause under 45 IAC 15-11-2 .
