Revenue Waives Penalty where Sales Tax Not Timely Remitted

Taxpayer is an Indiana retail merchant. The Indiana Department of Revenue ("Department") determined that Taxpayer had not timely remitted sales tax for the tax year 2011. The Department issued proposed assessments for base tax, a ten percent negligence penalty, and interest. Taxpayer protested the imposition of the penalty and interest.
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The Department issued a proposed assessment for base sales tax, penalty, and interest for the tax year 2011. Taxpayer protests the imposition of penalty and requests a waiver of that penalty. Taxpayer also protests the imposition of interest. The Department notes that it is prohibited from waiving interest under IC § 6-8.1-10-1(e).
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The Department considered Taxpayer's failure to timely remit sales tax to constitute negligence and so imposed penalty under IC § 6-8.1-10-2.1(a). As a result of the protest process, Taxpayer has affirmatively established that it acted reasonably in its efforts to comply with Indiana's tax filing requirements, as required by 45 IAC 15-11-2(c). The penalty will be waived. However, the Department takes this opportunity to notify Taxpayer that it is now aware of its sales tax obligations and that penalty may be imposed if this scenario occurs again. Also, the Department may not waive interest, as provided by IC § 6-8.1-10-1(e).

 

http://www.in.gov/legislative/iac/20130731-IR-045130319NRA.xml.html