state of new york tax appeals - Tax Appeals Tribunal

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-2 III. Whether petitioner has established facts or circumstances warranting the reduction or abatement of penalties imposed. FINDINGS OF FACT We find the facts as determined by the Administrative Law Judge. These facts are set forth below. Petitioner, What A Difference Cleaning, Inc. (hereafter “petitioner” or “What A Difference”) was incorporated on or about September 17, 1991. The corporation, doing business as Personal Touch Cleaning Services, was registered as a sales tax vendor by the Division of Taxation (“Division”) on November 27, 1991. Since its incorporation, Tom Glamcevski has been an officer and shareholder of What A Difference. During the period September 1, 1997 through August 31, 2003, What A Difference provided cleaning and maintenance services, including, but not limited to, carpet and upholstery cleaning, floor and window cleaning, and housekeeping and janitorial services, to residential and commercial customers located in Onondaga County, New York. On or about August 1, 2003, the Division assigned an auditor, Shannon Colonnese, to conduct a sales and use tax field audit of What A Difference for the period September 1, 1997 through May 31, 2003. Petitioner was selected for audit because an audit of an unrelated corporation, Tactair Fluid Controls (“Tactair”), indicated that What A Difference collected sales tax on housekeeping services provided to that corporation, and a routine check of What A Difference’s filing status indicated that it was not filing sales tax returns. An appointment letter dated August 5, 2003 and setting an appointment for September 10, 2003 was sent by Ms. Colonnese to What A Difference. The letter included a Records Requested List which requested the following records to be available for audit on the appointment date:
-3 Sales Tax Returns, Worksheets and Canceled Checks for entire audit period Federal Income Tax Returns (1120's or 1065's or 1040's) for entire audit period NYS Corporation Tax Returns for entire audit period General Ledger for the entire audit period General Journal and Closing Entries for entire audit period Sales Invoices for entire audit period All Exemption Documents Supporting Non-taxable Sales for entire audit period *** Chart of Accounts for entire audit period Fixed Asset Purchase/Sales Invoices for entire audit period Expense Purchase Invoices for entire audit period Merchandise Purchase Invoices for entire audit period Bank Statements, Canceled Checks and Deposit Slips for All Accounts for entire audit period Cash Receipts Journal for entire audit period (also Sales Journal if applicable) Cash Disbursement Journal for the entire audit period (also Purchase Journal if applicable) The Corporate Book (Minutes, Board of Directors, Articles of Incorporation) for entire audit period Depreciation Schedules for entire audit period ***This includes resale, exempt use, exempt organization, capital improvement certificates as well as any other necessary documentation to prove non-taxable sales. A review of the Tax Field Audit Record (“audit log”) indicates that, after receiving the appointment letter, Mr. Glamcevski contacted the auditor by telephone on August 18, 2003 and requested the audit appointment be rescheduled for September 17, 2003 at the Division’s Syracuse District Office. Further review of the audit log entry for that date indicates that during his telephone conversation with the auditor, Mr. Glamcevski explained that the corporation does not issue invoices and nothing is computerized. In the same audit log entry, the auditor noted that the Division had copies of computerized invoices issued by the corporation from another audit. On August 19, 2003, Mr. Glamcevski contacted the auditor by telephone to confirm the audit appointment for September 17, 2003. During that telephone conversation, Mr. Glamcevski
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Page 5 and 6: -5 During the September 17, 2003
Page 7 and 8: esponded that he would check with h
Page 9 and 10: -9 corporation during the audit p
Page 11 and 12: -11 31, 2002, some sales invoices
Page 13 and 14: -13 The third area of the audit w
Page 15 and 16: -15 statement reflected the audit
Page 17 and 18: -17 determined that you owe tax,
Page 19 and 20: -19 approximately 358 sales invoi
Page 21 and 22: -21 services” or “janitorial
Page 23 and 24: -23 Petitioner submitted into the
Page 25 and 26: -25 entitlement to its requested
Page 27 and 28: -27 Petitioner’s only challenge
Page 29 and 30: -29 be significant include consis

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