In 2019, Baden Tax Management (BTM) received a supplemental audit report from the Indiana Department of Revenue that secured over $200,000 in sales and use tax refunds on behalf of its client. The supplemental audit report was the result of a lengthy protest and re-hearing process that took the original audit liability of $480,000 to a net refund of $205,000 plus interest. The taxpayer under audit was a manufacturer of commercial vehicle and automotive parts located in Indiana. The taxpayer also operates a research and development and test facility to develop and improve the parts it manufactures and sells. The $684,250 reversal in this audit was the result of several hard-fought issues that required multiple appeals with the Department of Revenue. Some of those issues addressed in the supplemental audit included the assessment of tax and denial of refund for Research and Development equipment & supplies, material handling equipment, direct production machinery & equipment, safety equipment, testing, and quality assurance equipment, and documentary evidence of sales and use tax paid on the various purchase. BTM’s efforts working with Department officials on the protest and supplemental audit brought the client tax savings that not only affected past purchases but also tax savings on future purchases as well.
