Trial court lacks jurisdiction in tax suit

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The Indiana Tax Court is the proper venue for a suit filed by the state to recover an erroneous tax refund, the Indiana Court of Appeals affirmed today.

The Indiana Attorney General, on behalf of the state, filed a suit in Jackson Superior Court to recover a tax refund granted by the Indiana Department of Revenue to Aisin U.S.A. Manufacturing. The state believed the refund was erroneously granted due to a miscalculation of the refund owed to Aisin. Aisin had overpaid one year by more than $150,000; the DOR calculated that Aisin had overpaid by $1.07 million.

After discovering the error, the DOR sent a proposed assessment of how much Aisin actually owed due to the wrong credit amount. Aisin protested, but the DOR never held the requested hearing or issued a letter of findings. It instead cancelled the proposed assessment, but then a year it later tried to again recover the money. The state then filed the complaint in state court.

The trial court granted Aisin's motion to dismiss for lack of subject matter jurisdiction because the Tax Court has exclusive jurisdiction. On appeal in State of Indiana v. Aisin USA Mfg., Inc., No. 36A01-0909-CV-442, the state argued that it wasn't trying to collect a tax but just recover the money mistakenly refunded to Aisin.

But the mistake in which the state based its claim is a mistake in the calculation of a tax refund, wrote Judge Paul Mathias. The underlying core of the state's claims is an income tax issue that comes under the tax statutes.

The state also argued the Tax Court couldn't have jurisdiction because the DOR never entered a letter of findings. But the DOR was statutorily obligated to do so.

"We do not think that the DOR may unilaterally cancel a proposed tax assessment, fail to hold a hearing, and fail to issue a letter of findings in an attempt to deprive the Tax Court of jurisdiction, only to then attempt to litigate the issue in a trial court of general jurisdiction," wrote the judge.

The Tax Court has exclusive jurisdiction once the letter is issued. To hold otherwise would allow the DOR to avoid jurisdiction of the Tax Court by refusing to issue a letter of findings.

The state claimed that if it's not allowed to proceed in the trial court, it will be without recourse because the statute of limitations has expired.

"As Americans, and as Hoosiers, we take great pride in being a society of laws rather than of men," wrote Judge Mathias, noting that the Tax Court has held a taxpayer can't seek a refund for a tax period outside the statute of limitations. "We believe the same reasoning applies to the State when it seeks to recover an allegedly improper tax refund outside the relevant limitations period. To have any real meaning, statutes need to apply equally to the State as well as to its citizens."


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  3. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.