Taxpayers protest the imposition of a penalty for late payment of income tax.
Penalty waiver is permitted if the taxpayer shows that the failure to pay the full amount of the tax was due to reasonable cause and not due to willful neglect.
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Taxpayers filed their 2001 income tax return, and made the payment for tax due, more than three months after its April 2002 due date. During the hearing, the Department requested that Taxpayer provide documents or other materials to support Taxpayer's protest. Taxpayers did not provide an explanation, or any additional materials to counter the Department's determination that it did not receive Taxpayers' payment and return timely.
Taxpayers must demonstrate that they had reasonable cause for not timely remitting their Indiana income tax. In order to establish reasonable cause, Taxpayer must demonstrate that it exercised "ordinary business care and prudence" in conducting the duties from which the additional tax and penalty arose 45 IAC 15-11-2 (c). Taxpayers have not submitted information or documents sufficient to demonstrate reasonable cause for not timely remitting their 2001 Indiana income tax.
