DEPARTMENT OF STATE REVENUE
03-201100607P.LOF
Letter of Findings: 03-20110607P
Withholding Tax - Late Payment Penalty
For the Tax Period December 2010
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 It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register.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 the document will provide the general public with information about the Department's official position concerning a specific issue.
ISSUE
I. Withholding Tax – Penalty.
Authority: IC § 6-8.1-5-1; IC § 6-8.1-10-6.
Taxpayer protests the imposition of the penalty for late filing of information returns.
STATEMENT OF FACTS
Taxpayer is a corporation doing business in Indiana. Taxpayer filed its employees' W-2 forms and the WH-3 form after the due date for filing such returns. Taxpayer was assessed a $10 penalty per each W-2 and WH-3 form filed after the due date. Taxpayer protested the imposition of the penalty.
I. Withholding Tax – Penalty.
DISCUSSION
Taxpayer protests the imposition of the penalty on Taxpayer's failure to timely file forms W-2 and WH-3 on behalf of its employees. This penalty was imposed pursuant to IC § 6-8.1-10-6, which provides for a ten dollar ($10) penalty for each information return submitted late. A form W-2 and a form WH-3 are informational returns within the scope of the statute.
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 CFR 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.
In this instance, Taxpayer has established that it qualifies for waiver of the penalty.
FINDING
Taxpayer's protest of the assessment of penalty is sustained.
Posted: 02/29/2012 by Legislative Services Agency
DIN: 20120229-IR-045120076NRA
Composed: Apr 24,2024 12:41:36AM EDT
A
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