The Indiana Department of Revenue ("Department") conducted an audit review of Taxpayer's business records.
...
...
The Department's audit resulted in the assessment of additional sales and use tax. The assessment is attributable to an estimate of Taxpayer's taxable transactions because Taxpayer was unable to provide complete records of those transactions.
...
Taxpayer freely admits it was unable to provide complete documentation at the time the original audit occurred. Indiana law provides that, "Every person subject to a listed tax must keep books and records so that the Department can determine the amount, if any, of the person's liability for that tax by reviewing those books and records." IC § 6-8.1-5-4(a). Every taxpayer is under that statutory obligation to maintain adequate records but must also "allow inspection of the books and records and returns by the Department or its authorized agents at all reasonable times." IC § 6-8.1-5-4(c).
Taxpayer has belatedly provided copies of invoices which it maintains will affect the amount of the sales/use tax assessment. Perhaps so but Taxpayer has not met its statutory burden of demonstrating that the assessment was "wrong." Nonetheless, the Department is prepared to request that the Audit Division review the additional documentation and to make whatever adjustment it deems justified by that documentation.
...
...
Taxpayer purchases "urethral stints" which it argues are not subject to sales or use tax. Without specifically stating as much, Taxpayer apparently relies on IC § 6-2.5-5-18(a) which states in relevant part:
Sales of durable medical equipment, prosthetic devices, artificial limbs, orthopedic devices, dental prosthetic devices, eyeglasses, contact lenses, and other medical supplies and devices are exempt from the state gross retail tax, if the sales are prescribed by a person licensed to issue the prescription. (Emphasis added).
...
Taxpayer has established that the stents are prescribed to patients, that the stents fall within the definition of "durable medical equipment", that the stents are required to alleviate injury to or malfunction of the purchaser's body, and that the stents are not "medical supplies consumed in professional use. (See 45 IAC 2.2-5-36 ) As such, the stents fall within the exemption set out in IC § 6-2.5-5-18(a).
...
...
Taxpayer argues that it was not required to pay sales tax when it rented a heart lung machine from a vendor called Heme Management. Taxpayer states that the rental of the medical device is exempt because Heme Management provided personnel who accompanied and operated the medical device.
...
...
To the extent that Taxpayer provided specific invoices establishing that Taxpayer rented the medical device along with a "Labor Service Fee," Taxpayer's protest is sustained because Taxpayer has met its burden under IC § 6-8.1-5-1(c) of establishing that imposition of tax on the these particular transactions is "wrong."
