In 2022, taxpayer entered a no contest plea to two counts of tax fraud. Under the Plea and Disposition Agreement, taxpayer personally agreed to pay $162,534.06 in restitution for unpaid gross receipts tax. The Department issued assessment notices, which the taxpayer protested, asserting that liability belonged to a limited liability corporation rather than to him individually. Both the Administrative Hearings Office and the Court of Appeals affirmed personal liability.
In this protest, the doctrine of res judicata barred the taxpayer from relitigating the validity of the personal assessment, as this issue had already been adjudicated. Accordingly, the protest was denied.
Additionally, taxpayer protested a Notice of Claim of Tax Lien for approximately $1,425. The Department established the validity of the lien through summary judgment, and taxpayer failed to demonstrate grounds for its release or extinguishment. The AHO upheld the lien as valid.