Indiana assessment proper for county tax withholding errors

A proposed assessment against an Indiana based corporate income taxpayer was sustained as the taxpayer failed to withhold county taxes properly. In this matter, the taxpayer was initially audited by the Department of Revenue (department) for withholding taxes for the tax years 2013 and 2014 that resulted in a proposed assessment. The taxpayer paid the proposed assessment and filed a claim for refund which was denied. It was noted that the taxpayer confused withholding tax types and failed to (1) withhold county income tax in the tax year 2013 and (2) withhold county income tax for one employee in the tax year 2014. Accordingly, the taxpayer’s protest was denied. (Final Order Denying Refund: 03-20170599, Indiana Department of Revenue, April 16, 2018, July 2018.)

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