Tax Type
Retail Sales and Use Tax
Description
Audit sample; Failure to supply documentation
Topic
Collection of Delinquent Tax
Date Issued
07-31-1986
July 31, 1986
Re: Virginia Code §58.1-1821 Application
Sales and Use Tax and Individual Income Tax
Dear ****************
This is in reply to your letter of January 22, 1986 in which you apply for correction of the sales tax and individual income tax assessments issued to your client, ************* (Taxpayer).
FACTS
The department performed a recent sales tax audit on Taxpayer's business based upon a sample period using a mark-up allowance agreed to by the taxpayer. Additionally the department's auditor and your client agreed upon an allowance for theft, an amount for withdrawals from inventory and an amount for transfers between locations. You now contend that these amounts are not accurate.
DETERMINATION
In requesting that the department waive the assessments, you have not presented any documentation to support your allegations that the auditor's calculations are flawed.
Under the provisions of Virginia Code §58.1-205, assessments issued by the Department of Taxation are to be "deemed prima facie correct." Therefore, because the department's assessments are based upon the information agreed to by your client and absent specific evidence that the department's assessments are erroneous, I find no basis to rule favorably on your application for correction. If you have any additional, specific documentation which refutes the basis of these assessments, please contact our Technical Services Section within the next 30 days. They will make the necessary adjustments to the assessments.
If your client (or Taxpayer's estate, since Taxpayer is deceased) lacks the means to satisfy the balance of the assessments, you may want to suggest that they make an offer in compromise under the provisions of Virginia Code §58.1-105.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner