Taxpayer is business with operations in Indiana and other states. The Indiana Department of Revenue ("Department") determined that a ten percent negligence penalty was due for underpayment of utilities receipts tax ("URT") for the tax year 2004. Taxpayer filed a protest and provided supplemental documentation supporting that protest.
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The Department issued proposed assessments for a ten percent negligence penalty for 2004. Taxpayer protests the imposition of penalty and requests a waiver of the penalty. Taxpayer states that it merged with another company during that year and that, when both parties' remittances are taken into account, the total of URT remitted for 2004 is accurate. Taxpayer provided documentation and analysis in support of its position. Taxpayer believes that these factors establish grounds for waiver of the ten percent penalty.
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In this case, the Department determined that Taxpayer had under-remitted URT for 2004 due to negligence under 45 IAC 15-11-2 (b), and so was subject to penalty under IC § 6-8.1-10-2.1(a)(4). As a result of the protest process, Taxpayer has provided supporting documentation in the protest process. After a review of that documentation, Taxpayer has affirmatively established that it remitted the proper amount of URT for 2004, as required by 45 IAC 15-11-2 (c).
