NOTICE: IC § 4-22-7-7 permits the publication of this document in the Indiana Register. The publication of this document provides the general public with information about the Indiana Department of Revenue's official position concerning a specific set of facts and issues. The "Holding" section of this document is provided for the convenience of the reader and is not part of the analysis contained in this determination.

Individual was not entitled to a refund of tax withheld by her employer during 2014. Individual failed to demonstrate that she timely filed the required Indiana Full-Year Resident Return (Form IT-40) reporting her income in order to claim the refund.

I. Indiana Individual Income Tax - Claim for Refund - Statute of Limitations.

Authority: IC § 6-8.1-9-1; 45 IAC 15-9-2; Commissioner's Directive 13 (June 2012).

Taxpayer protests the Department's refund denial of individual income tax for the 2014 tax year.

Taxpayer is an Indiana resident who has been working in Indiana and filing her income tax returns reporting her Indiana income since 1990s. In March 2019, Taxpayer filed her 2014 Indiana income tax return - Indiana Full-Year Resident Individual Income Tax Return (Form IT-40) - requesting a refund of approximately $300 tax withheld. The Indiana Department of Revenue ("Department") reviewed and denied the requested refund.

Taxpayer protested the refund denial. Taxpayer requested that the Department make the final determination without conducting an administrative hearing. This Final Order Denying Refund results based on the information submitted by Taxpayer as well as the Department's records. Additional facts will be provided as necessary.

I. Indiana Individual Income Tax - Claim for Refund - Statute of Limitations.

In March 2019, Taxpayer filed her 2014 Indiana income tax return (IT-40), claiming that she was entitled to a refund of tax withheld by her employer during the 2014 year. The Department denied Taxpayer's refund claim on the ground that the refund claim was not timely.

In general, if a taxpayer believes that he or she has overpaid the tax, the taxpayer is required to timely file a claim for a refund with the Department. Specifically, IC § 6-8.1-9-1(a), in relevant part, states:

Thus, when a taxpayer determines he or she overpaid tax, for example in a situation like this, the taxpayer must file his or her income tax return stating the overpayment as prescribed by the Department in order to claim a refund. IC § 6-8.1-9-1(a); 45 IAC 15-9-2; Commissioner's Directive 13 (June 2012), 20120530 Ind. Reg. 045120241NRA. The taxpayer also must clearly state "the amount of the refund," "detailed explanation of the basis of the claim such that the department may determine its correctness," "the tax period for which the overpayment is claimed," and "the year and date of the overpayment." 45 IAC 15-9-2.

IC § 6-8.1-9-1(b), in relevant part, further states that:

In this instance, upon initial review of Taxpayer's 2014 filing, the Department denied Taxpayer's refund claim. The Department, in its April 5, 2019, denial letter, explained in part, that the refund claim in question was not timely pursuant to IC § 6-8.1-9-1(a). In particular, the letter states the following:

Taxpayer's protest letter seemingly suggested that the three (3) years should not have run because "[a] friend volunteered to file my claim in 2014 [sic] . . . but [the friend] retired . . . , moved . . . misplaced, and . . . forgot about my claim." Taxpayer further stated that this friend became ill then and that only after this friend recovered from cancer treatment recently in 2019, her 2014 return was filed. As such, the circumstances - according to Taxpayer - shall toll the three (3) year statute of limitations. Taxpayer however did not reference any legal authority to support her protest.

Upon review, however, Taxpayer's reliance of the above-circumstances is misplaced. In particular, a review of Taxpayer's supporting documentation demonstrated that Taxpayer herself prepared, signed, and dated her 2014 return (Form IT-40) in March 2019. Taxpayer's return speaks for itself: Schedule 7 of her 2014 return stated "SELF-PREPARED." Thus, in the absence of other verifiable supporting documents, the Department is not able to agree that the three-year statute of limitations should not have run.

As mentioned earlier, for Indiana income tax purposes, to obtain the refund, IC § 6-8.1-9-1(a) requires that a taxpayer "must file the claim with the department within three (3) years after the [later] of . . . (1) [t]he due date of the return [or] (2) [t]he date of payment." Taxpayer's employer withheld tax on wages paid to her during and throughout 2014 and Taxpayer's income tax return was due on or before April 15, 2015. Thus, the later of the due date for claiming refund for 2014 is three (3) years from April 15, 2015. In other words, Taxpayer was required to file her return to claim her 2014 refund on or before April 15, 2018. Taxpayer did not file her return on or before April 15, 2018. On March 21, 2019, Taxpayer filed her original IT-40 for the 2014 to claim a refund. Taxpayer's refund claim thus was untimely.

Taxpayer's protest is respectfully denied.

June 19, 2019