16-31<\/a><\/p>\nOn September 14, 2009, the Department assessed the Taxpayer for gross receipts tax and interest for the tax periods from March 31, 2004 through March 31, 2008.\u00a0 The Taxpayer was also assessed for withholding tax, penalty and interest.\u00a0 The Taxpayer filed a protest to the assessment of gross receipts tax and penalty on October 9, 2009.\u00a0 The Taxpayer did not protest anything regarding the withholding assessment.\u00a0 The Taxpayer did not file gross receipts returns for the periods at issue.\u00a0 The Department mailed the Taxpayer a Notice of Limited Scope Audit Commencement which provided that the Taxpayer was required to provide any nontaxable transaction certificates (NTTCs) within 60 days or by September 5, 2008.\u00a0 The Taxpayer provided the Department with 3 timely\u00a0NTTCs, two Type 5 certificates, and one Type 6.\u00a0 During the period at issue, the Taxpayer was an S corporation and out of state business providing retail store setup, remodeling, installation of fixtures, and other related construction-related services for construction contractors.\u00a0 The Taxpayer was not able to obtain\u00a0NTTCs\u00a0from all the contractors he did business with in the allotted time frame, and did not dispute at hearing that the receipts from transactions with those contractors are not deductible and therefore subject to tax.\u00a0 Upon finalizing the audit, after the 60 day period had elapsed, the Department informed the Taxpayer that the Type 5 and Type 6\u00a0NTTCs\u00a0were the wrong type because the Taxpayer was a staffing company.\u00a0 The Taxpayer testified that the services performed for the contractors who provided the\u00a0NTTCs\u00a0at issue were resold and the construction project was subject to gross receipts tax upon completion.\u00a0 At the hearing, the Department conceded that a properly executed Type 5\u00a0NTTC\u00a0is valid, but argued that one of the Type 5 certificates presented by the Taxpayer was not properly executed because the contractor did not put the Taxpayer\u2019s information on the certificate.\u00a0 The hearing officer found that, because the Taxpayer accepted the certificate in good faith and was not told of the error when he faxed it to the Department in the 60 day period, the\u00a0NTTC\u00a0would be allowed to support the deduction.\u00a0 The Department also argued that a Type 6 did not apply because the Taxpayer was not a licensed contractor, but the hearing officer found that a Type 6 was allowable in this situation because the services were performed for a contractor.\u00a0 The hearing officer ordered that the part of the assessment related to the\u00a0NTTCs\u00a0presented be abated.\u00a0 The Taxpayer\u2019s protest was granted in part and denied in part.<\/span><\/p>\n<\/div>\n[\/et_pb_text][et_pb_text _builder_version=”4.6.6″ _module_preset=”default”]<\/p>\n
Back to Tax Decisions & Orders<\/a><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
06\/28\/2016 16-31 On September 14, 2009, the Department assessed the Taxpayer for gross receipts tax and interest for the tax periods from March 31, 2004 through March 31, 2008.\u00a0 The Taxpayer was also assessed for withholding tax, penalty and interest.\u00a0 The Taxpayer filed a protest to the assessment of gross receipts tax and penalty on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"960","footnotes":""},"categories":[43],"tags":[],"class_list":["post-4185","post","type-post","status-publish","format-standard","hentry","category-tax-decisions-orders"],"yoast_head":"\n
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