The Indiana Tax Court Wednesday agreed with the Indiana Department of State Revenue that two claims made by a company appealing its tax liability should be dismissed because legal relief cannot be granted.
Medco Health Solutions Inc. is appealing the Indiana Department of State Revenue’s final determination that assessed it with an additional Indiana adjusted gross income tax liability for the tax years ending August 19, 2003, December 27, 2003, December 25, 2004, and December 31, 2005. The company is incorporated in Delaware and headquartered in New Jersey. It provides pharmacy benefit management services.
The DSR argued in MedCo Health Solutions, Inc. v. Indiana Department of State Revenue, 49T10-1105-TA-35, that Medco can’t prevail on two claims: that the department was required to source Medco’s receipts based on two separate advisory letters; and that it is entitled to a refund.
Tax Judge Martha Wentworth granted the department’s petition to dismiss those claims pursuant to Trial Rule 12(B)(6). The letters Medco cites were requested through Medco’s representative at Pricewaterhouse Coopers LLP. But when PWC asked for the department’s advice, it did not identify Medco as the taxpayer but instead referred to it using an assumed name. As such, the department can’t be bound to them, Wentworth held, citing Indiana Administrative Code.
She also agreed Medco is not entitled to a refund because it never filed any refund claims or amended returns. Medco’s petition fails to indicate that it filed a claim for the refund as required by Indiana Code. In addition, the department’s final determination cannot constitute a denial of a claim for a refund because it only addresses Medco’s protest of the proposed assessments, not whether the auditor ever considered that Medco overpaid any tax.