Best Tax Attorneys in Brookhaven, GA

Alabama Tax Tribunal has affirmed the Department of Revenue's assessment of sales tax and the 50% fraud penalty against the taxpayer, operator of a convenience store, for the tax periods at issue. On audit, the taxpayer failed to provide any records to support the gross sales and deductions stated on its sales tax returns. As a result, the Department used a purchase mark-up audit to compute the taxpayer's tax liability, applying a 35% purchase mark-up to the taxpayers purchases for resale from vendors to determine taxable sales. The Tribunal rejected the taxpayer argument that the 35% mark-up employed by the Department was unreasonable, noting that the mark-up was based on Internal Revenue Service information regarding percentage markups of gas stations and grocery stores and that the Tribunal had previously determined this percentage to be reasonable. Because of the taxpayer's complete lack of sales records and gross underreporting, the Department also applied the 50% fraud penalty. The Tribunal found that the taxpayer's failure to provide any explanation for its gross underreporting supported the Department's assessment of the 50% fraud penalty...