Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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Annotation 465.0545


465.0545 Claim for Increase in Determination. As the result of a preliminary hearing following the filing of a timely petition protesting the findings of an audit, the staff counsel ordered that a reaudit be made to give effect to certain additional evidence presented by the taxpayer. During the reaudit, the auditor found grounds for asserting additional tax. The reaudit report was dated July 13, and pursuant to section 6563, the Board asserted a claim for increase in a letter dated July 23. However, on July 17 the Board received from petitioner payment in full of the amount of the original determination, together with a notice the petition was withdrawn. By letter dated August 3, petitioner contested the Board's authority to seek the additional amount disclosed by the reaudit because the petition had been withdrawn before a claim for increase had been issued and this action closed the matter.

The only constraint on the assertion of an increase in a determination is that it be issued before the determination becomes final and that it be asserted at or before a Board hearing and before the limitation period of section 6563 expires. These requirements were met. The petitioner's unilateral action does not close the matter. Once a petition for redetermination has been filed, the determination is held in abeyance pending some further action by the Board. That action is a redetermination. The withdrawal of the petition merely permits the Board to redetermine without further review. It does not itself cause a redetermination or require the Board to redetermine immediately. 2/14/85.