…
The Department's audit assessed use tax on certain purchases
where Taxpayer did not have documentation showing that it paid sales tax at the
time of the purchases or self-assessed and remitted use tax. Taxpayer claimed
that the Department's audit made a calculation error in computing statutory
interest on the proposed assessment.
…
At the administrative hearing, Taxpayer explained that it
timely filed a ST-103 form, self-assessing and remitting use tax due for
February 2008 tax period ("Tax Period at issue"), in the amount of
$16,107.39. However, during the audit, the Department discovered that the
return for the Tax Period at issue was not posted in the Department's computer
system, resulting in an overpayment of $16,107.39. In the process of
reconciling Taxpayer's records, the Department's audit assessed Taxpayer
additional use tax for the Tax Period at issue plus interest, and treated this
$16,107.39 payment as an overpayment, which subsequently was applied to the
assessment in July 2011. While the Department treated the $16,107.39 payment as
an overpayment, this $16,107.39 overpayment does not generate interest in the
Department's system.
…
Upon reviewing Taxpayer's documentation, Taxpayer has
provided sufficient documentation demonstrating that it timely filed and
remitted the $16,107.39 tax for the Tax Period at issue. Thus, the Department
will remove the items, for which Taxpayer timely paid the use tax, from the
audit and recalculate interest in a supplemental audit.
