Texas Comptroller Affirms Sales Tax Assessment, Fraud Penalty Issued Against Owner, Operator of Convenience Store

The Texas Comptroller of Public Accounts July 16 affirmed a sales and use tax assessment issued against Taxpayer, the owner and operator of a convenience store. The Tax Division (staff) performed an estimated audit due to the lack of reliable records and issued the assessment with late and fraud penalties, and interest. Taxpayer requested a redetermination, arguing the audit overstated his taxable sales due to an incorrect product mix and product markup variables used in estimating taxable sales. The Administrative Law Judge found: 1) Taxpayer didn’t submit evidence to support his contentions; 2) the staff correctly imposed the fraud penalty ...