Tax Type
Retail Sales and Use Tax
Description
Deficiency assessments; Audit procedures
Topic
Collection of Delinquent Tax
Date Issued
08-27-1997
August 27, 1997
Re: § 58.1-1821 Application: Retail Sales and Use Tax
Dear*****************
This is in reply to your letter in which you seek correction of a sales and use tax assessment issued to********** (the Taxpayer) for the period August 1995 through November 1996.
FACTS
As a result of the department's audit, an assessment was made for untaxed purchases used in the Taxpayer's operation. The Taxpayer questions the audit methodology using withholding tax figures in the base for extrapolating the error factor.
DETERMINATION
It is my understanding that in a conversation with a member of my staff, the Taxpayer maintains that it has the appropriate records showing the amount of gross purchases during the audit period. The error factor should be computed using gross purchases information.
Accordingly, the audit will be returned to the*********** District Office. The auditor will contact the Taxpayer within 30 days to review the purchase information. If the Taxpayer can provide sufficient purchase information for extrapolating the results of the purchase sample, the auditor will make the appropriate adjustments to the error factor and the audit report.
Upon completion of the review and possible revision thereof, the auditor will send the Taxpayer a revised audit report. Depending on the results of the revision, a refund for the tax and interest overpaid will be issued. If you have any questions regarding this letter, you may contact *****at ******** . Questions concerning audit procedures should be directed to********* at ********* .
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/12660T
Rulings of the Tax Commissioner