DEPARTMENT OF STATE REVENUE
04-20060467P.LOF
Letter of Findings Number: 06-0467P
Sales Tax
For the Month of August 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 It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register.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 – Penalty
The taxpayer protests the late penalty.
STATEMENT OF FACTS
The late penalty was assessed on the late payment and filing of a monthly sales tax return for the period August 2006. The taxpayer is an out-of-state taxpayer.
I. Tax Administration – Penalty
DISCUSSION
The taxpayer requests the penalty be abated as the error was inadvertent, and, the taxpayer says the taxpayer has a quality compliance record.
With regard to the inadvertent error, the error is the result of employee turnover. The Department has consistently held that employers are responsible for the actions of their respective work force. In this case, errors were cause by excessive employee turnover. As the employer (taxpayer) is responsible for the excessive turnover, the employer (taxpayer) is deemed inattentive to tax duties.
With regard to the compliance record, the taxpayer has had six prior penalty billings that the taxpayer paid. The Department does not consider this compliance record to be a compliance record that would be a factor in the abatement of penalty.
The regulation which references inattention is
45 IAC 15-11-2(b) which states:
Negligence, on behalf of a taxpayer is defined as the failure to use such reasonable care, caution, or diligence as would be expected of an ordinary reasonable taxpayer. Negligence would result from a taxpayer's carelessness, thoughtlessness, disregard or inattention to duties placed upon the taxpayer by the Indiana Code or department regulations. Ignorance of the listed tax laws, rules and/or regulations is treated as negligence. Further, failure to read and follow instructions provided by the department is treated as negligence. Negligence shall be determined on a case by case basis according to the facts and circumstances of each taxpayer.
The Department finds the taxpayer was inattentive to tax duties. Inattention is negligence and negligence is subject to penalty. As such, the taxpayer's penalty protest is denied.
FINDING
The taxpayer's penalty protest is denied.
Posted: 06/20/2007 by Legislative Services Agency
DIN: 20070620-IR-045070329NRA
Composed: Apr 28,2024 3:25:28PM EDT
A
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