Taxpayer is an Indiana business which operates a combination gasoline station and convenience store. The gasoline station sells gasoline from two pumps. The convenience stores sells, tobacco products, soft drinks, food items, and the like.
The Department of Revenue ("Department") conducted an audit review of Taxpayer's books and records. The audit began May 2012 and concluded October 2012.
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The Department's audit concluded that Taxpayer "under reported gasoline sales." As stated in the audit report, "The gallons sold reported on ST-103MP were subtracted from the purchased gallons. The under-reported metered pump sales were found when the average pump price was multiplying the difference between purchased and sold."
Taxpayer does not dispute the additional sales tax assessed for the years 2010 and 2011. Taxpayer does claim that it can belatedly provide documentation which establishes that it purchased less fuel during 2009 than the amount determined by the Department's audit.
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Taxpayer complains that it was denied sufficient time in which to produce the requested documentation. Whether or not the Department agrees that six months was sufficient time in which to obtain the records is ultimately beside the point. What is relevant is that Taxpayer has now provided records from its gasoline vendor which purportedly demonstrate that Taxpayer purchased less gasoline during 2009 then that determined by the audit.
Taxpayer has not met its burden under IC § 6-8.1-5-1(c) of demonstrating that the 2009 assessment was wrong. However, the audit division is requested to review the vendor invoices and to make whatever adjustment to the 2009 sales tax assessment as may be warranted.
