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 Memorandum of Decision.

Individual was granted an extension at the Federal level and therefore had a filing extension in Indiana. Due to this extension, Individual timely filed his 2015 Indiana Income Tax Return and is entitled to the claimed refund.

I. Tax Administration - Statute of Limitations.

Authority: IC § 6-8.1-6-1; IC § 6-8.1-9-1; Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579 (Ind. 2014).

Taxpayer protests the denial of his refund claim.

Taxpayer is an individual who previously lived in Indiana as a lawful permanent resident. In 2014, Taxpayer abandoned his lawful permanent resident status and returned to living in Canada. Taxpayer's employer did not successfully record this change of residence and withheld Indiana income tax for the 2015 tax year. Taxpayer discovered this error and filed his 2015 Indiana income tax return in October 2019, claiming a refund of all money erroneously withheld. The Indiana Department of Revenue ("Department") denied Taxpayer's claim for refund because he filed his return beyond the three-year period required to file a refund claim. Taxpayer protested the denial and an administrative hearing was held. This Memorandum of Decision results. Additional facts will be provided as necessary.

I. Tax Administration - Statute of Limitations.

Taxpayer's 2015 Indiana tax return was initially due April 18, 2016. Taxpayer filed a Form 4868 Automatic Extension for his 2015 Federal return. The Internal Revenue Service ("IRS") therefore granted an extension through October 15, 2016. Taxpayer filed his 2015 Indiana income tax return in October 2019, which was processed on November 8, 2019.

"[W]hen [courts] examine a statute that an agency is 'charged with enforcing. . .[courts] defer to the agency's reasonable interpretation of [the] statute even over an equally reasonable interpretation by another party.'" Dept. of State Revenue v. Caterpillar, Inc., 15 N.E.3d 579, 583 (Ind. 2014). Thus, all interpretations of Indiana tax law contained within this decision shall be entitled to deference.

The Indiana Code provides guidance on filing a refund claim. IC § 6-8.1-9-1(a) provides:

IC § 6-8.1-6-1(c) provides:

Taxpayer provided documentation establishing that he was no longer living or working in Indiana in 2015 and that the IRS had granted an extension on his income tax return through October 15, 2016. He also included a copy of his Form 4868 Automatic Extension along with his IT-40 income tax return. Therefore, based on the automatic extension established under IC § 6-8.1-6-1(c)(1) and on the three-year window to claim a refund provided by IC § 6-8.1-9-1(a), Taxpayer had until November 14, 2019 to file the refund at issue.

Based on the documentation provided during the protest, Taxpayer demonstrated that he did not owe Indiana income tax in 2015 and that his Indiana income tax return for that year was timely filed. Therefore, he is entitled to the claimed refund.

Taxpayer is sustained.

September 8, 2020