The Arkansas Office of Hearings and Appeals (OHA) Aug. 23 found the Department of Finance and Administration (DFA) correctly assessed sales and use tax and excise tax against Taxpayer by using a reasonable audit methodology. Taxpayer, a retail establishment operator, protested the DFA’s gross receipts tax and alcoholic beverage tax assessments. On audit, the DFA examined Taxpayer’s records including z-tapes, purchases, bank statements, excise tax reports, federal and state tax returns, and other information. Upon discovering a discrepancy, the DFA proposed estimated assessments. Taxpayer protested and proposed an alternative methodology. The OHA determined that Taxpayer underreported its sales and the...