Texas Comptroller Affirms Motor Vehicle Sales Tax Assessment Against Used Car Dealership Operator (Decision 2 of 3)

The Texas Comptroller of Public Accounts Dec. 15, 2022 adopted an Administrative Law Judge’s (ALJ) recommendation to affirm the excise tax, additional penalty for fraudulent evasion of tax, and interest assessed against Taxpayer, a limited liability company that operated a used car dealership. The Tax Division (staff) conducted a motor vehicle sales tax compliance audit on Taxpayer’s business and assessed tax, fraud penalty, and interest. Taxpayer contested the fraud penalty assessment and requested redetermination. The ALJ noted that: 1) Taxpayer provided an incomplete sales report from the Department of Motor Vehicles while conducting the audit; 2) the staff’s evidence convincingly ...