Indiana: Caution to taxpayers under Indiana audit
The Indiana Department of Revenue is currently ignoring the threshold of activity required to be considered a manufacturer under Indiana law as set forth in the court case of Merchandise Warehouse Co. Inc. v Indiana Department of State Revenue No. 49S10-1712-TA-735 in that a recent letter of finding No. 04-20181578. SLOF that held repair parts for animal feed manufacturing equipment to be taxable. The Department ostensibly gives complete deference to auditor findings when those audits are protested rendering the protest hearing process an exercise in futility. This makes it imperative that Indiana taxpayers under audit consult their tax advisors early in the audit process as this Department of Revenue does not conduct a fair hearing process making it very difficult to get incorrect audit or hearing results rectified without the expense of a Tax Court case.