§ 6-8.1-5-4 — Books and records; federal returns; inspection

Indiana § 6-8.1-5-4

• Jurisdiction: Indiana
• Art. 8.1: DEPARTMENT OF STATE REVENUE; TAX
• Ch. 5: Assessment of Taxes

Text

(a) Every person subject to a listed tax must
keep books and records so that the department can determine the
amount, if any, of the person's liability for that tax by reviewing those
books and records. The records referred to in this subsection include all
source documents necessary to determine the tax, including invoices,
register tapes, receipts, and canceled checks.
(b) A person must retain the books and records described in
subsection (a), and any state or federal tax return that the person has
filed:
(1) for an unlimited period, if the person fails to file a return or
receives notice from the department that the person has filed a
suspected fraudulent return, or an unsigned or substantially blank
return;
(2) in all other cases, for a period of at least three (3) years after
the date the final payment of the particular tax liability was due,
or for a period during which a judicial proceeding or appeal
related to a listed tax is pending, whichever is later, unless after
an audit, the department consents to earlier destruction; or
(3) if the limitation on assessments provided in section 2 of this
chapter is extended beyond three (3) years for a particular tax
liability, the person must retain the books and records until the
assessment period is over, or for a period during which a judicial
proceeding or appeal related to a listed tax is pending, whichever
is later.
(c) A person must allow inspection of the books and records and
returns by the department or its authorized agents at all reasonable
times.
(d) A person must, on request by the department, furnish a copy of
any federal returns that the person has filed.
(e) The failure of a person to keep books and records in the ordinary
course of business shall be considered for purposes of determining the
weight of the evidence as it relates to the person's liability for a listed
tax, and not for purposes of the admissibility of the evidence. In
examining the evidence, the department and the courts may take into
account any federal law regarding the probative value of such evidence.
As added by Acts 1980, P.L.61, SEC.1. Amended by
P.L.6-1987, SEC.11; P.L.71-1993, SEC.18; P.L.234-2019,
SEC.31.