In December 2002, the Department assessed the taxpayer for gross receipts tax, interest, and penalty resulting from failure to file some monthly CRS-1 reports and underreporting receipts for other months during the 1996 and 1997 tax years. The taxpayer protested the assessments, arguing that he would have taken steps to correct his underreporting of gross receipts tax if he had been alerted sooner. The hearing officer denied the protest, noting that it is the obligation of taxpayers, who have the most accurate and direct knowledge of their activities, to determine their tax liabilities and accurately report those liabilities to the state. Because the Department’s assessments were issued within the statutory time limits, there was no basis for abating the tax, penalty, and interest assessed.
Magdalena Construction Co.
08/19/2004