Tax Type
Retail Sales and Use Tax
Description
Alcoholic Beverage Sales
Topic
Collection of Delinquent Tax
Date Issued
09-23-1991
September 23, 1991
Re: §58.1-1821 Application: Retail Sales & Use Tax
Dear*****************
This will reply to your letter of February 15, 1991 in which you seek reconsideration of the department's prior determination to the above referenced taxpayer dated December 20, 1989 (P.D. 89-347) based upon additional information provided.
FACTS
The Taxpayer was assessed as the result of a sales and use tax audit for the period January 1986 through December 1988 for having understated its sales tax. The Taxpayer alleges that information upon which the audit deficiency was predicated, sales figures reported to the Department of Alcoholic Beverage Control (ABC), were incorrect. An independent accounting firm was hired to reconstruct and verify the Taxpayer's sales for the period covered by the audit. The Taxpayer maintains that the independent audit is much more detailed, at least in reporting its findings, than the Department's, and accordingly seeks reconsideration and a meeting.
DETERMINATION
As you know, tax assessments are deemed to be prima facie correct and the burden is on the taxpayer to prove otherwise. While the report of the independent accounting firm was informative, it did not provide any additional information which would convince me of the need to revise the assessment. It appears that the accounting firm encountered many of the same problems encountered by the department's auditors in gathering information - that documentation to support the Taxpayer's contentions did not exist.
For example, during the audit, the auditors were not given cash register receipts to consider as the Taxpayer maintained that he did not put tapes in his registers. The accounting firm, however, was supplied with cash register tapes yet these provided only monthly totals which would not be helpful to the auditors as they need documentation of daily sales transactions.
The department's assessment was based on information the Taxpayer itself furnished to ABC on its sales. As the Taxpayer has not provided sufficient evidence to refute the validity of these figures and, as ABC has apparently not accepted any change to the figures, I find absolutely no basis for adjusting the assessment which is now due and payable. A revised notice of assessment with interest accrued through the date of this letter will be sent to the Taxpayer shortly. If, at a later date, ABC accepts revised figures from the Taxpayer, a refund may be requested from our ********** District office.
As the facts are clear, I see no need for a hearing. However, the Taxpayer may arrange a meeting with our ******* audit staff and ABC representatives if it feels this would be helpful.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner