Texas Comptroller Affirms Sales and Use Tax Assessment, Fraud Penalty Against Restaurant Operator

The Texas Comptroller of Public Accounts Aug. 11 adopted the Administrative Law Judge’s (ALJ) recommendation to affirm a sales and use tax assessment and fraud penalty against Taxpayer, a restaurant operator. The Tax Division (staff) audited Taxpayer’s restaurant and assessed tax, interest, a 10 percent late penalty, and an additional 50 percent fraud penalty. Taxpayer requested redetermination, contending that the estimate was incorrect. The staff disagreed. Upon review, the ALJ found: 1) Taxpayer failed to establish the audit was erroneous; 2) Taxpayer didn’t provide a valid reason to waive the interest and late penalty; 3) the staff’s evidence clearly and ...