§ 6-3-4.5-17 — Inconsistent reporting of tax attribute; disclosure; proposed assessment; timing; reporting considered conclusive for protest or appeal

Indiana § 6-3-4.5-17

• Jurisdiction: Indiana
• Art. 3: STATE INCOME TAXES
• Ch. 4.5: Partnership Audit and Administrative Adjustments

Text

(a) If the department determines that a
taxpayer reported a tax attribute in an inconsistent manner with the
partnership's reporting of the tax attribute and the taxpayer does not
disclose the inconsistent reporting in a manner prescribed by the
department, the department may issue a proposed assessment against
the taxpayer as a result of the inconsistent reporting not later than:
(1) three (3) years after the due date of the partnership's return,
including any valid extensions granted under IC 6-8.1-6-1;
(2) three (3) years after the partnership's return is filed with the
department;
(3) in the case of the partnership's underreporting of its adjusted
gross income by more than twenty-five percent (25%), the periods
provided in subdivisions (1) and (2) shall be six (6) years;
(4) if the partnership fails to file a return required under IC 6-3-4-10, files a fraudulent return, or files a substantially blank
return, no time limit; or
(5) the latest date for which the taxpayer could be assessed under
IC 6-8.1-5-2;
whichever date is latest.
(b) For purposes of this section:
(1) if a partnership is required to file a return under IC 6-3-4-10
and fails to file such return or fails to provide the partner with a
statement setting forth the tax attributes from the partnership, the
taxpayer will be considered to have reported all tax attributes
from the partnership in an inconsistent manner with the
partnership's reporting of the tax attributes;
(2) in the case of a partner who owns a direct or indirect interest
in a partnership that has made a valid election under Section
6221(b) of the Internal Revenue Code and has received a final
federal adjustment with regard to an item of the partnership:
(A) the partner shall be considered to have reported items
consistently with the partnership only if the partner properly
reports the federal adjustment in a manner consistent with the
federal treatment of such adjustment; and
(B) for purposes of this chapter, IC 6-8.1-5-2, and IC 6-8.1-9-1,
the federal adjustment shall be considered a final federal
adjustment with regard to such partner; and
(3) for purposes of any protest or appeal with regard to a proposed
assessment under this section, any reporting by the partnership
shall be considered conclusive with regard to the direct or indirect
partners of the partnership, provided that the reporting by the
partnership is determined to be neither fraudulent nor in bad faith.

Legislative History

As added by P.L.159-2021, SEC.18. Amended by P.L.137-2022, SEC.49.