Alan Moya



In 2008 and 2009, the Taxpayer worked as a subcontractor performing home inspections exclusively for one home inspection company.  On June 25, 2012, the Department sent the Taxpayer a Notice of Limited Scope Audit Commencement.  The notice informed the Taxpayer that he had 60-days, until August 24, 2012, to produce any necessary nontaxable transaction certificates (NTTCs) to support his deductions.  The Taxpayer did not possess any NTTCs by August 24, 2012.  On September 20, 2012, the Department assessed the Taxpayer for gross receipts tax, penalty and interest for the reporting periods ending December 31, 2008 and December 31, 2009.  The Taxpayer filed a written protest to the assessment.  On October 3, 2012, the home inspection company executed an untimely Type 5 NTTC to the Taxpayer.  At the hearing, the Taxpayer argued that since the company he subcontracted with had already paid the taxes on his services, imposing the full assessments was excessive and resulted in double taxation.  However, because the Taxpayer did not timely possess the necessary NTTC, the Department was required to disallow his claimed deduction. Given the gross receipts tax structure, there was no double taxation. The Taxpayer is also liable for accrued interest and penalty.  The Taxpayers’ protest was denied.