The Arkansas Office of Hearing and Appeals (OHA) Aug. 23 sustained the Department of Finance and Administration’s (DFA) sales and use and alcoholic beverage excise tax assessment. The DFA examined Taxpayer’s records including z-tapes and tax reports and found that Taxpayer didn’t provide a complete set of z-tapes. Upon discovering a discrepancy between the audited taxable sales in Taxpayer’s returns and the z-tapes, the DFA assessed Taxpayer estimating taxable sales for the missing periods. Taxpayer protested and proposed an alternative methodology. The OHA noted that Taxpayer: 1) underreported its sales and the DFA’s extrapolation from existing z-tapes to missing z-tapes...