Socorro Cattlemans Café

00-12

Taxpayers owned a business that was closed in May 1990.  At that time, the Taxpayers were behind in reporting and paying gross receipts taxes. Because the Taxpayers did not notify the Department they had stopped doing business, the Department issued a nonfiler’s assessment that included reporting periods after the business was closed. It was several years before the Taxpayers’ actual liability was determined and the assessment was paid.  In July 1997, the Taxpayers filed a claim for refund of the penalty and interest they had previously paid.  The Department denied the claim and Taxpayers filed a protest to the denial of their claim for refund of interest. The Taxpayers maintained the Department took too long to determine the actual amount of their gross receipts tax liability and they should be excused from the payment of interest during this period of delay. Taxpayers also asked that the accrual of interest be suspended for a three-year period when they were unable to make payment due to illness and other family misfortune. Held: The delay in determining the amount of tax due and the Taxpayers’ personal and financial hardships do not justify the abatement of interest. Taxpayers were properly assessed interest on their underreporting of gross receipts tax.  Protest denied.