Lobo Tech LLC

24-11

The Taxpayer, a plumbing contractor, was assessed gross receipts tax in periods from 2015 to 2018. The Taxpayer argued that several of the periods for which it was assessed were beyond the statute of limitations. In general, the Department has three years from the end of the calendar year in which the tax was due to make an assessment. However, the Department has six years from the end of the calendar year when a taxpayer underreports their tax liability by more than 25%. This supported that the Taxpayer should not be assessed for one of the periods in 2015 based on the date of the assessment, but that it was proper for the Department to assess for the other periods. The Taxpayer was able to produce a nontaxable transaction certificate and alternative evidence that supported that some of the receipts were deductible but was not able to provide evidence for other transactions, as it had lost many of its records. Because of the evidence presented, the Hearing Officer abated a portion of the assessment but denied the rest of the assessment. Interest was also stopped based on the date the protest office was statutorily required to request a hearing.