Enrique Arroyo

24-09

The Department assessed the Taxpayer for gross receipts tax for tax years from 2013 to 2016. The Taxpayer was eventually able to provide evidence to support the fact that the vast majority of the gross receipts in these years on which the tax was based had been derived from contracting work performed in Texas and which was therefore deductible. There was still, however, a smaller remaining balance. The taxpayer did not protest the remaining amount of tax owed within 90 days of the assessment but instead protested the later action the Department took when it levied a bank account of the Taxpayer for the remaining balance. The protest was therefore about whether it was appropriate for the Department to take such an action. Since there was still a remaining balance owed on the assessment, and the Taxpayer had not paid the tax owed, the Hearing Officer determined the Department acted properly when it had levied the account, and the protest was denied.