Tax Type
Retail Sales and Use Tax
Description
First audit; Veterinary clinic
Topic
Collection of Delinquent Tax
Taxpayers' Remedies
Date Issued
08-30-1995
August 30, 1995
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear***************:
This will reply to your letter of August 10, 1995 in which you appeal a recent sales and use tax assessment of your company,**********(the "Taxpayer"), for the period June 1992 through March 1995.
The Taxpayer, a veterinary clinic, contests the tax and interest assessed on the grounds that this was the first audit of the Taxpayer and that he was unaware that the tax was not properly being paid on various purchases. You suggest that since all efforts are currently being made to comply with the statutes, some relief should be granted. You should note that no penalty was assessed since this was a first audit.
Although I am sympathetic, a review of the audit documentation reveals that the audit was performed correctly and the tax was appropriately assessed. Additionally, the department has worked over the years to educate the veterinary profession on the application of the tax, including the publication of Tax Bulletin 87-9, copy enclosed (which was developed in conjunction with the Virginia Veterinary Medical Association). Thus, the department has no alternative under the law but to require payment of the tax and interest assessed.
A revised Notice of Assessment, with accrued interest, will be mailed to you shortly. If you have any questions about this matter, please contact ***********in my Office of Tax Policy at***********.
Sincerely,
Danny M. Payne
Tax Commissioner
Danny M. Payne
Tax Commissioner
OTP/10127H
Rulings of the Tax Commissioner