New York—Sales and Use Tax: Motion to Reargue Denied

Taxpayers’ petition for revision of determinations or refund of New York State sales and use taxes was denied. The taxpayers did not set forth a reason that would require the Division of Tax Appeals to reconsider its prior determination. Instead, the taxpayers claimed that the administrative law judge failed to address their argument based on a New York State judgment and overlooked or misapplied a principle of law.
The Division of Tax Appeal denied the taxpayers’ petition as they misread the case. However, the administrative law judge did not overlook a principle of law. In the case relied upon by the taxpayers, the court did not set forth a directive to the division. The case involved a seller of scrip who sought a declaratory judgment that it could not be held liable for sales tax obligations incurred by the adult entertainment clubs where it sold scrip.

The taxpayers failed to set forth a prime reason that required the Division of Tax Appeals to exercise its limited authority to reconsider its prior determination. Hence, the taxpayers’ motion to reargue was denied.


About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

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