Texas Comptroller Finds Taxpayer Failed to Establish Sales and Use Tax Audit, Penalty Erroneous

The Texas Comptroller of Public Accounts Nov. 14, 2018 decided to adopt the Administrative Law Judge’s (ALJ) recommendation affirming the Tax Division’s (staff) sales and use tax assessment. The staff audited Taxpayer’s convenience store business, and made an assessment that included a 50 percent fraud penalty. Taxpayer contended that it wasn’t necessary to estimate the audit, and that the schedules didn’t include credit for rebates received on certain products. The staff disagreed with both contentions, and argued that the 50 percent penalty should be affirmed. Upon review, the ALJ found that the staff’s evidence was sufficient to establish that: 1) ...