20081126-IR-045080850NRA Letter of Findings Number: 08-0356P Withholding Tax For Tax Year 2006

DEPARTMENT OF STATE REVENUE

03-20080356P.LOF

Letter of Findings Number: 08-0356P

Withholding Tax

For Tax Year 2006

NOTICE: Under IC § 4-22-7-7, this document is required to be published in the Indiana Register and is effective on its date of publication. It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register. The publication of this document will provide the general public with information about the Department's official position concerning a specific issue.

ISSUE

I. Tax Administration–Information Return Penalty.

Authority: IC § 6-8.1-10-6.

The taxpayer protests the imposition of the penalty for filing information returns late.

STATEMENT OF FACTS

The taxpayer was assessed a penalty for the late filing of Forms W-2 for the year 2006. Taxpayer protested the penalty assessment.

I. Tax Administration–Information Return Penalty.

DISCUSSION

The taxpayer protests the penalty for late filing of Forms W-2 for 2006. IC § 6-8.1-10-6 states:

(a) As used in this section, "information return" means the following when a statute or rule requires the following to be filed with the department:

(1) Schedule K-1 of form IT-20S, IT-41, or IT-65.

(2) Any form, statement, or schedule required to be filed with the department with respect to an amount from which tax is required to be deducted and withheld under IC 6 or from which tax would be required to be deducted and withheld but for an exemption under IC 6.

(3) Any form, statement, or schedule required to be filed with the Internal Revenue Service under 26 C.F.R. 301.6721-1(g) (1993).The term does not include form IT-20FIT, IT-20S, IT-20SC, IT-41, or IT-65.

(b) If a person fails to file an information return required by the department, a penalty of ten dollars ($10) for each failure to file a timely return, not to exceed twenty-five thousand dollars ($25,000) in any one (1) calendar year, is imposed.

(c) For purposes of this section, the filing of a substantially blank or unsigned return does not constitute a return. ( Emphasis added)

Taxpayer argues it has two account numbers ("Account 1" and "Account 3"). Taxpayer asserts that it filed the annual withholding tax form, Form WH-3, and Forms W-2 under Account 3, but deposited the tax under Account 1. Taxpayer then sent in a WH-3 under Account 1 and an amended WH-3 zeroing out Account 3.

Taxpayer has provided information that substantiates that it in fact filed the Forms W-2 in a timely manner. Therefore, Taxpayer's protest for late filing of the Forms W-2 and Form WH-3 is sustained.

FINDING

The taxpayer's protest is sustained.

Posted: 11/26/2008 by Legislative Services Agency

DIN: 20081126-IR-045080850NRA

Composed: Nov 01,2016 12:31:32AM EDT

A PDF version of this document.