Archaeological Support Svcs

15-42

On August 3, 2015, the Department issue two assessments of $5 each to the Taxpayer.  The assessments were penalty for not timely filing CRS-1 returns for the CRS reporting periods ending on September 30, 2014, and December 31, 2014.  The Taxpayer protested the assessments.  During the period in question, the Taxpayer was not engaged in active business and has no gross receipts tax liability.  Rather than close his business, the Taxpayer maintained his CRS number and prepared CRS-1 returns showing zero liability on a quarterly basis.  The Taxpayer’s wife also operates a business subject to CRS reporting requirements, so the Taxpayer submits his returns in an envelope along with his wife’s and notes on the front of the envelope that two CRS-1 returns are included.  The Department did not process the Taxpayer’s returns for the two reporting periods at issue, along with another period.  The Department timely received the Taxpayer’s wife’s returns, contained in the same envelope as the Taxpayer’s returns, for two of those reporting periods.  The Taxpayer acknowledged that he did not timely file the CRS-1 return for the reporting period ending on December 31, 2014.  The Hearing Officer found the Taxpayer’s testimony to be credible that he timely mailed his CRS-1 return for the reporting period ending on September 30, 2014 in the same envelope with his wife’s return, which was received and processed.  The Hearing Officer ordered the penalty for that reporting period to be abated.  The Taxpayer’s protest was granted in part and denied in part.