Alabama Tax Tribunal Upholds Audit Assessment with Adjustments Made Based on Taxpayer’s Challenges

• An Alabama taxpayer challenged an audit assessment issued by the Department of Revenue (DOR).
• The audit assessment included sales tax due for the period of November 2010 through February 2016, along with a fraud penalty.
• The taxpayer argued that the assessments were time-barred and that the DOR’s markup percentages were excessive.
• The taxpayer also claimed that the DOR’s sales calculations should have been reduced for theft and spoilage.
• The DOR argued that the assessments were timely and that the markup percentages were reasonable.
• The Alabama Tax Tribunal upheld most of the audit assessment but directed the DOR to recalculate the sales tax final assessment by eliminating periods outside the statute of limitations and removing the fraud penalty.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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