state of new york tax appeals - Tax Appeals Tribunal

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-4 explained that petitioner had been collecting sales tax on one account for the past three years and not remitting it to the Division. He also asked what petitioner should do about the nonremitted sales tax. During the same telephone conversation, the auditor told Mr. Glamcevski that the Division would pick up the nonremitted sales tax as part of the audit. The audit log entry for that date does not identify the specific customer from whom petitioner collected tax or the amount of tax collected and not remitted to the Division. On September 17, 2003, Mr. Glamcevski and his accountant, Walter Nendza, met with the auditor and a team leader, Richard Ayoub. During this meeting, Mr. Glamcevski explained that the corporation’s bank deposits equaled its gross sales for Federal income tax purposes. He also explained that tax was included in the net sales amount listed on several invoices. At this meeting, Mr. Glamcevski provided the following records: What A Difference’s Federal income tax returns (forms 1120) for the period August 1, 1997 through July 31, 2002, i.e., the fiscal years ending July 31, 1998, July 31, 1999, July 31, 2000, July 31, 2001 and July 31, 2002; What A Difference’s bank statements for the months of September 1997 through July 2003; some job work orders issued under the trade name Personal Touch Cleaning Services by petitioner to its customers, bearing dates within the months of September 1997 through July 2003; and selected expense purchase invoices for the years 2001 and 2002. However, Mr. Glamcevski did not provide, among other things, the corporation’s general ledger, an asset depreciation schedule or any backup for items being depreciated on the corporation’s Federal income tax returns for the period September 1, 1997 through May 31, 2003. The auditor retained the records for further review and the team leader gave Mr. Glamcevski a receipt for the records. At this meeting, the auditor gave Mr. Glamcevski a sales tax registration kit because he stated that petitioner never registered to collect sales tax.
-5 During the September 17, 2003 meeting, the Division extended the audit period to September 1, 1997 through August 31, 2003 and orally requested, among other things, petitioner’s records, including job work orders, for the period June 1, 2003 through August 31, 2003. Mr. Glamcevski agreed to provide the corporation’s records for the updated audit period at this meeting. Immediately after the September 17, 2003 meeting, the auditor began reviewing the records provided. Using the corporation’s bank statements and Federal income tax returns, the auditor prepared a spreadsheet to compare deposits reported on the bank statements to the gross sales reported on the Federal income tax returns. The auditor found the total deposits for the period September 1, 1997 through July 31, 2002 to be only $1,207.09 greater than the gross sales reported on the corporation’s Federal income tax returns for the period August 1, 1997 through July 31, 2002. 1 Her initial review of the job work orders and invoices (“sales invoices”) indicated that petitioner billed sales tax on some sales, but did not remit the collected tax, and did not charge sales tax on some taxable sales. The auditor found that the dated and legible sales invoices were filed in date order. She also found that the prenumbered sales invoices were issued to every customer. The auditor prepared a spread sheet summarizing all sales invoices provided to date. She also reviewed and summarized the expense purchase invoices provided to date. On September 19, 2003, during a telephone conversation with Mr. Glamcevsi, the auditor requested the job work orders for the period September 1, 1997 through August 31, 2003. During this same conversation, Mr. Glamcevski stated that he would bring the job work orders for the period June 1, 2003 through August 31, 2003 and the equipment purchase invoices for the 1 In her comparison of bank deposits to gross sales reported on the corporation’s Federal income tax returns, the auditor made an adjustment for the missing August 1997 bank deposits because that month was prior to the beginning of the audit period.
Page 1 and 2: STATE OF NEW YORK TAX APPEALS TRIBU
Page 3: -3 Sales Tax Returns, Worksheets
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

state of new york tax appeals - Tax Appeals Tribunal

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