DEPARTMENT OF STATE REVENUE
04-20090485.LOF
Letter of Findings Number: 09-0485
Use Tax
For Tax Years 2006-2007
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 It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register.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
Authority: IC § 6-8.1-5-1.
Taxpayer protests the imposition of use tax.
STATEMENT OF FACTS
Taxpayer operates a full-service heating and air conditioning business in Indiana. Taxpayer sells, installs, and performs repair services on heating and cooling systems. Taxpayer operates as a lump sum contractor for new unit sales and as a time and materials contractor for the repair services it performs. After an audit, the Indiana Department of Revenue ("Department") determined that Taxpayer owed additional use tax and assessed tax, interest, and negligence penalties for the 2006 and 2007 tax years. The Department found that Taxpayer had purchased a variety of materials without either paying sales tax at the time of purchase or remitting use tax to the Department. The Department also determined that Taxpayer underreported the amounts of use tax due on its Form ST-103s because the amounts reported varied from the amounts that Taxpayer had accrued in its books and records. Taxpayer protested the imposition of use tax that was based upon the difference between the form ST-103s and Taxpayer's books. An administrative hearing was held, and this Letter of Finding results.
DISCUSSION
All tax assessments are presumed to be accurate; the taxpayer bears the burden of proving that an assessment is incorrect. IC § 6-8.1-5-1(c).
The Department determined that Taxpayer underreported the amounts of use tax due on its Form ST-103s because the amounts reported varied from the amounts that Taxpayer had accrued in its books and records. Taxpayer maintains that this additional tax due is overstated.
During the course of the protest, Taxpayer presented several invoices, exemption certificates, and other documentation that was not originally presented to the Department during the audit. The Audit Division is requested to review Taxpayer's newly presented documentation and to determine the amount of adjustment it deems appropriate. Thus, Taxpayer's protest is sustained subject to the results of that supplemental audit.
FINDING
Taxpayer's protest is sustained subject to findings of the supplemental audit performed by the Audit Division.
Posted: 04/28/2010 by Legislative Services Agency
DIN: 20100428-IR-045100207NRA
Composed: Apr 28,2024 9:28:34AM EDT
A
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