Taxpayer is a corporation doing business in Indiana. The Indiana Department of State Revenue ("Department") assessed Taxpayer a ten percent penalty for underpayment of tax by the original due date of Taxpayer's 2011 corporate income tax return.
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The Department imposed a ten percent penalty on Taxpayer because the Department found that Taxpayer – having filed its 2011 corporate income tax return– failed to remit ninety percent of the full amount of corporate income tax on or before the original due date for payment. Thus, the Department imposed a ten percent payment penalty under IC § 6-8.1-10-2.1(a)(2) for the amount of tax that was paid after the original due date of the return. Taxpayer protests the imposition of the penalty for its underpayment of tax.
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Taxpayer has provided sufficient information to establish that its failure to pay ninety percent of the tax due by the original 2011 return due date was not due to Taxpayer's negligence, but was due to reasonable cause as required by 45 IAC 15-11-2 (c). Therefore, the assessment of the ten percent penalty is waived.
