Alabama Tax Tribunal Voids Sales Tax Assessments Against Taxpayer

The Alabama Tax Tribunal, in its opinion and final order, voided the final assessments of state and local sales tax against the taxpayer for the periods of May 2016 through January 2019. The dispute centered on the taxpayer’s reported sales consistently being lower than its purchases from vendors during the audit period. The taxpayer maintained that it kept accurate sales records, including daily Z-tapes, used to prepare its tax returns. The Department of Revenue argued that the Z-tapes were unreliable because the taxpayer’s purchases exceeded its reported sales, suggesting underreporting of sales. However, the tribunal found that the taxpayer’s Z-tapes ...