The Tax Division of the Texas Comptroller of Public Accounts (Comptroller) audited (Petitioner) for compliance with sales and use tax laws and made an assessment that included tax, a 10% late penalty, and accrued interest. Petitioner contended the audit erroneously assessed tax on sales of interactive voice response (IVR) services. In the alternative, Petitioner argued that the essence of the assessed transactions was nontaxable call center services. Petitioner also argued that its sales of telecommunication services were either nontaxable or tax-paid. Staff agreed to make adjustments to the audit, but disagrees with Petitioner’s argument regarding the taxability of the IVR services.
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