Sec. 17. (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;

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Terms Used In Indiana Code 6-3-4.5-17

  • adjusted gross income: shall mean the following:

         (a) In the case of all individuals, "adjusted gross income" (as defined in Section 62 of the Internal Revenue Code), modified as follows:

    Indiana Code 6-3-1-3.5

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(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.

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

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