Document Number
18-199
Tax Type
Retail Sales and Use Tax
Description
Records Not Provided for Review
Topic
Appeals
Date Issued
12-07-2018

 

December 7, 2018

 

 

Re:      § 58.1-1821 Application:  Retail Sales and Use Tax

 

Dear *****:

 

This is in response to your letter submitted on behalf of ***** (the “Taxpayer”) in which you seek correction of the retail sales and use tax assessment issued for the period January 2013 through April 2017.

 

FACTS

 

The Taxpayer operates a gas station and convenience store.  In response to an appeal letter submitted by the Taxpayer, a determination letter was issued on May 9, 2018, upholding the assessment issued for the period at issue.  The assessment was upheld because the Taxpayer had not provided documentation for review and had not met its burden of proving that the assessment is incorrect, pursuant to Virginia Code § 58.1-205.

 

In its most recent letter, the Taxpayer requests that the tax assessment be reconsidered, and the Taxpayer be allowed to provide the records so that the audit can be performed.  The Taxpayer states that it has made available another person who has access to the records to provide to the Department’s auditor.  The Taxpayer further states that the records will be available at the auditor’s earliest convenience.

 

DETERMINATION

 

Virginia Code § 58.1-633 provides that:

 

Every dealer required to make a return and pay or collect any tax under this chapter shall keep and preserve suitable records of the sales, leases, or purchases, as the case may be, taxable under this chapter, and such other books of account as may be necessary to determine the amount of tax due hereunder, and such other pertinent information as may be required by the Tax Commissioner.

 

Based upon the information provided in your most recent letter and your conversation with a member of my staff, the Taxpayer will be given one final opportunity to provide documentation related to the audit period at issue for review by the Department’s audit staff.  In order for such review to occur, the Taxpayer must adhere to the requirements stated below.

 

The Department’s auditor will contact the Taxpayer to schedule a time for the Taxpayer to provide the required documentation and for the aforementioned review to take place.  Within fifteen days from the date of the contact with the auditor, the Taxpayer must provide the auditor with the name and contact information of an alternate point of contact designated by the Taxpayer to assist with providing the documentation related to the audit period at issue.  Within 30 days from the date of contact with the auditor, the Taxpayer must provide all documentation related to this audit, in accordance with Virginia Code § 58.1-633.  If all documentation is not provided within the allotted timeframe, the audit of the Taxpayer’s records will be based upon the documentation that has been provided to the Department’s auditor.  If the Taxpayer does not provide any documentation within the allotted timeframe, the assessment will be upheld as issued, and the liability will become immediately due and payable with interest accrued to date.  This is the final time that this matter will be addressed by the Department.  If the Taxpayer does not comply with the requirements stated in this letter, the Taxpayer will not be given another opportunity to provide documentation to the Department for the audit period at issue.

 

The Code of Virginia sections cited are available on-line at www.tax.virginia.gov in the Laws, Rules and Decisions section of the Department’s web site.  If you have any questions about this response, you may contact ***** in the Department’s Office of Tax Policy, Appeals and Rulings, at *****.

 

Sincerely,

 

Craig M. Burns
Tax Commissioner

 

 

AR/1716P

 

 

Rulings of the Tax Commissioner

Last Updated 01/08/2019 14:02