This is a successor in business case. Taxpayer was the secretary and a director of CLC, a corporation owned by his brother that provided computer-aided drafting services and designs for homes. The corporation leased office space and maintained a customer list that included many local businesses. After the corporation dissolved, the Taxpayer continued the business by leasing the same office. The Taxpayer kept the office furniture and customer list from the former corporation, though he purchased new computers and software. The Taxpayer also assumed responsibility and benefit of some of the corporation’s existing jobs. The Taxpayer registered his new business with the Department and filed monthly CRS-1 forms. The Taxpayer was assessed for gross receipts taxes, penalty and interest owed by the CLC corporation based on mere continuation of the business. During the hearing, the Department initially assessed 20% negligence penalty and abated 10% of negligence penalty. Taxpayer’s protest was denied.
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