The Gambler breaks even:  Tax Court orders Indiana Department of Revenue to answer discovery requests but denies Taxpayer’s second motion to compel in income tax appeal

The Gambler breaks even: Tax Court orders Indiana Department of Revenue to answer discovery requests but denies Taxpayer’s second motion to compel in income tax appeal

The Tax Court does not often address discovery issues in published decisions and orders.  In this case, Popovich v. Indiana Department of State Revenue, Cause No. 49T10-1010-TA-53 (April 24, 2014 and June 4, 2014), the Court has issued three orders – the first (Popovich I ) on Taxpayer’s first motion to compel and … [Read more...]

Indiana taxes – Let’s reorganize local government to save more money

Indiana taxes – Let’s reorganize local government to save more money

The Indiana General Assembly is considering proposals to reduce, if not eliminate, Indiana's personal property tax burden.  In the Indianapolis Star yesterday, Faegre Baker Daniels attorney Chris W. Cotterill, who previously served as Indianapolis Mayor Gregory A. Ballard’s Chief of Staff, offered his thoughts on … [Read more...]

Cataloging connections:  Distributor’s out-of-state clients had no Indiana sourced income and lacked substantial nexus with the State

Cataloging connections: Distributor’s out-of-state clients had no Indiana sourced income and lacked substantial nexus with the State

In a pair of rulings issued last month, the Indiana Department of Revenue concluded that a Distributor’s clients didn’t have income from Indiana sources and had no substantial nexus with Indiana.  Therefore, the clients were not required to file Indiana income tax returns or collect and remit sales tax on … [Read more...]

Using the Internet Tax Freedom Act to turn the tables on state iGaming taxes

Using the Internet Tax Freedom Act to turn the tables on state iGaming taxes

In the December/January 2013/2014 edition of iGaming Business North America, I discuss the development of real-money Internet gambling and one significant restriction on the way that states can tax that growing business.  The article, “Turning the Tables on State iGaming Taxes,” begins: All eyes are on Nevada, … [Read more...]

Indiana Department of Revenue issues same-sex marriage tax filing guidance

Indiana Department of Revenue issues same-sex marriage tax filing guidance

The Indiana Department of Revenue has issued the following guidance for same-sex spouses on its web site. In accordance with IC 31-11-1-1, Indiana does not recognize same-sex marriages. Therefore, same-sex couples who file federal returns with a married filing status must each file their Indiana income tax … [Read more...]

Income from qualified airport development project not subject to Indiana corporate income tax, but Taxpayer must claim and support it properly

Income from qualified airport development project not subject to Indiana corporate income tax, but Taxpayer must claim and support it properly

The Department assessed additional corporate income tax against Taxpayer (“AirCo”), a C Corporation operating in Indiana.  The Department found that AirCo had underreported the sales receipts in its Indiana numerator for apportionment purposes.  AirCo had reported all of its Indiana receipts, but its return … [Read more...]