On March 20, 2018, the Taxpayer was assessed for gross receipts tax, penalty and interest for periods 2009 through 2016. On May 10, 2018, the Taxpayer filed a timely protest of the assessment. The Taxpayer conceded that they owed the gross receipts tax and interest, and paid these amounts, but protested the assessment of penalty. Though a penalty may be abated when a Taxpayer fails to pay tax that is owed as the result of a mistake of law made in good faith and on reasonable grounds, or if the taxpayer is considered to be non-negligent, the Hearing Officer determined that in this case the Taxpayer failed to present any evidence to establish this. The Taxpayer argued, though, that since the Department did not respond to their protest letter in 2018, after the audit had been resolved, they assumed the issue of the penalty on the assessment had been resolved and, later, destroyed their records after three years. Though the Hearing Officer acknowledged that the Department was supposed to request a hearing in 2018 and did not, there was not a remedy in statute that would allow for the penalty to be abated for this reason. Because of this, the Hearing Officer denied the protest.