Cruz v. Testa
Annotate this CaseAppellant in this appeal contested twenty-seven assessments of delinquent sales tax. Appellant’s liability derived from previous assessments against a pet store business of which Appellant was co-owner and an officer. The Board of Tax Appeals (BTA) affirmed the tax commissioner’s determination upholding the assessments against Appellant. Appellant argued on appeal that she may contest the validity of the service of the assessments against the corporation as a defense against her derivative liability. The Supreme Court agreed. Noting that the record in this case documented successful service as to seven of the twenty-seven assessments but did not show completed service of the others, the Supreme Court affirmed the BTA’s decision to uphold the seven assessments as to which completed service was shown. The Court then vacated the BTA’s decision with regard to the other twenty assessments, holding that a successful challenge to the service on the corporation will invalidate the derivative-liability assessment against the responsible individual. Remanded with instructions that the BTA take additional evidence and determine whether service of those twenty assessments was perfected on the corporation.
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