SALT Report 1614 – A Taxpayer’s failure to comply with a filing and payment prerequisite resulted in the dismissal of the taxpayer’s request for hearing. The Taxpayer received an assessment of $67,757.46 in unpaid taxes and interest. Initially the Taxpayer agreed that they owed a portion of the assessed tax (uncontested amount) to the Department. However, during a discussion the Taxpayer said the initial uncontested amount was wrong and that they owed a different amount. The Taxpayer chose to file a petition for a request for hearing to determine the amount owed.
Prior to filing a petition, the Department requires that the Taxpayer pay all applicable taxes, penalties, and interest assessed by the Department that are not being contested by the Taxpayer. Failure to pay the uncontested amount will result in the dismissal of the action and the imposition of an additional penalty of 25% of the amount taxed. This prerequisite is a jurisdictional issue and is in lieu of the requirement to post a bond in the entire amount of taxes, penalties and interest owed.
The taxpayer in this case did not pay the uncontested amount. In doing so, the taxpayer failed to satisfy the requirement to challenge the contested portion of the assessed tax, and, as a result, the taxpayer’s request for formal hearing was dismissed.
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