3-2700-18078-2
STATE OF
OFFICE OF ADMINISTRATIVE HEARINGS
FOR THE DEPARTMENT OF REVENUE
|
In the Matter of the Revocation of the Sales and Use Tax Permit of Magic Carpet Specialists, Inc. |
FINDINGS OF
FACT, CONCLUSIONS, AND RECOMMENDATION |
The above-entitled matter came on for hearing before
Kathleen D. Sheehy, Administrative Law Judge, on July 17, 2007, at the Office
of Administrative Hearings in
Wayne
L. Sather, Esq., Minnesota Department of Revenue, Mail Station 2220,
There
was no appearance by or on behalf of the Respondent, Magic Carpet Specialists,
Inc.,
This report is a recommendation, not a final
decision. The Commissioner of Revenue
will make the final decision after a review of the record. The Commissioner may adopt, reject, or modify
the Findings of Fact, Conclusions, and Recommendations. Under Minn. Stat. § 14.61, the final decision
of the Commissioner of Revenue shall not be made until this report has been
made available to the parties to the proceeding for at least ten days. An opportunity must be afforded to each party
adversely affected by this report to file exceptions and present argument to
the Commissioner of Revenue. Parties
should contact Wayne L. Sather, Attorney, Legal Services Section, Mail Station
2220,
If the Commissioner fails to issue a final decision within 90 days of the close of the record, this report will constitute the final agency decision under Minn. Stat. § 14.62, subd. 2a. The Commissioner must notify the parties and the Administrative Law Judge of the date on which the record closes.
The issue is
whether the Respondent has failed to pay sales and use taxes owed to the
Department as required by law, thereby authorizing the revocation of the
Respondent’s sales and use tax permit.
The Administrative Law Judge concludes that the permit should be revoked.
Based upon all of the proceedings herein, the Administrative Law Judge makes the following:
1. The
Commissioner of the Minnesota Department of Revenue issued the Notice and Order
for Hearing in this matter on June 4, 2007.
The Notice and Order for Hearing was served that day by first class and
certified mail on Magic Carpet Specialists, Inc.,
2. In
the Notice and Order for Hearing, the Department alleged that the Respondent
holds Sales and Use Tax Permit number 4582232 issued by the Minnesota
Department of Revenue and has failed to pay all sales and use tax due to the
State of
3. The Notice and Order for Hearing contained the following passage:
The
Respondent’s failure to appear at the hearing may result in a finding that the
Respondent is in default, that the Department’s allegations contained in this
Notice and Order may be accepted as true, and its proposed action may be
upheld.[2]
4. The Respondent did not file a Notice of Appearance with the Office of Administrative Hearings, failed to appear on the scheduled hearing date, and failed to contact the Administrative Law Judge to seek a continuance or any other relief. The Respondent is, therefore, in default.
5. The allegations set forth in the Notice and Order for Hearing are incorporated herein by reference in their entirety.
6. Persons who make taxable sales are by law
required to collect and remit sales tax to the State of
Based upon the foregoing Findings of Fact, the Administrative Law Judge makes the following:
CONCLUSIONS OF LAW
1. The Department of Revenue and the Administrative Law Judge have authority to consider the issues set out in the Notice and Order for Hearing and to take the action proposed under Minn. Stat. §§ 14.50, 289A.20, subd. 4, and 270C.722, subd. 1.
2. The Department gave proper notice of the hearing in this matter to the Respondent and has complied in all other respects with the procedural requirements of law and rule.
3. The Respondent is in default under Minn. R. 1400.6000 as a result of its failure to appear at the hearing.
4. Under
5. The Respondent has failed to pay sales and use taxes as required by Minn. Stat. §§ 289A.20, subd. 4, and 297A.62, subd. 1.
6. As a result of the failure to pay sales taxes owed to the Department, including penalties and interest, reasonable cause exists to revoke the Respondent’s sales tax permit under Minn. Stat. § 270C.722, subd. 1.
Based upon the foregoing Conclusions of Law, the Administrative Law Judge makes the following:
RECOMMENDATION
IT IS HEREBY RECOMMENDED: that the Commissioner of Revenue revoke sales and use tax permit number 4582232 issued to Magic Carpet Specialists, Inc.
Dated: July 18, 2007
s/Kathleen D. Sheehy _____________________
KATHLEEN D. SHEEHY
Administrative Law Judge
Reported: Default
NOTICE
Pursuant to Minn. Stat. § 14.62, subd. 1, the Commissioner is required to serve the final decision upon each party and the Administrative Law Judge by first-class mail.