Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013

Uniform Local Sales and Use Tax Annotations

700.0000 APPLICATION OF TAX—Regulation 1803

Annotation 700.0196

700.0196 Reallocation of Revenue. The taxpayer notified the Board by letter dated March 29, 1993 that the taxpayer was reporting tax under an incorrect Tax Area Code (TAC) and requested reallocation to a particular city. The Board's file indicated that the error was corrected on July 1, 1993. However, an error in the computer's registration field prevented the on-line correction from going through so that all periods subsequent to the third quarter 1993 went to a different jurisdiction. On October 25, 1995, the Board discovered the error.

Facts that are actually in possession of the Board do not constitute knowledge of an erroneous allocation unless the taxpayer, an employee or the Board, or some other person questions the correction of the local tax allocation. In this case, the Board records showed that the original error was corrected on July 1, 1993, effective back to April 1, 1992. The taxpayer's records indicated that the error was cleared on July 1, 1993. There is no indication in the documents available at the time that the Board had any knowledge that the error was not corrected for subsequent periods. Consequently, the October 25, 1995 date (date Board employee discovered the error) constitutes a notification in the fourth quarter of 1995 of a new error. As a result, section 7209 does not authorize reallocation back further than the first quarter 1995. 1/19/96.