Why am I Being Audited?

You just received notification that your business has been selected for a Texas Comptroller state tax examination. Unless you have been through the audit process before, you probably have lots of questions and concerns. Of course one of the first questions most business owners ask is, “Why my business?” Although it’s common to think you did something wrong, this usually isn’t the case. However, if you have been selected for audit, Texas Tax Group has a team of 15 former Texas Comptroller State Tax Auditors who can help you save time and money. (more…)

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Calvin Russell Laird, Jr., 50, of Lawn

Calvin Russell Laird, Jr., 50, of Lawn, was convicted of second-degree felony motor fuel tax fraud and sentenced to a term of 20 years imprisonment in the Institutional Division of the Texas Department of Criminal Justice. The sentence is the maximum allowed by law for the offense. Laird was convicted after pleading guilty to the indictment, which alleged that he intentionally and knowingly evading and attempting to evade motor fuel tax by delivering dyed diesel into the fuel tank of a motor vehicle for use upon a public highway. The case was prosecuted as cause number 24940A in Taylor County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Notice Required for Biodiesel and Renewable Diesel

Texas law provides a tax exemption for biodiesel, renewable diesel and for the volume of biodiesel or renewable diesel blended with taxable diesel fuel. This exemption is intended to be passed to the ultimate consumer.

The volume of biodiesel and renewable diesel and the volume of biodiesel or renewable diesel that is combined with taxable diesel fuel must be identified on the sales invoice on each sales transaction after the biodiesel or renewable diesel is produced and is first blended with taxable diesel fuel, and must continue to be identified on sales invoices until sold to the ultimate consumer. Comptroller Rule 3.433 details the information required on each sales invoice issued by wholesalers (refiners, producers, blenders, importers resellers) and retail dealers.

A wholesaler must identify on each sales invoice the volume of biodiesel or renewable diesel that is combined with taxable diesel fuel showing the number of gallons of biodiesel or renewable diesel, rounded to the nearest whole gallon, or by the percentage of biodiesel or renewable diesel, rounded to the nearest whole percentage. This is not an option. The sales invoice must also indicate the state tax collected on each sale based on the volume that is taxable petroleum-based diesel fuel.

Dealers are required to identify on each sales invoice the volume of biodiesel and renewable diesel sold through a retail pump to the ultimate consumer. On retail sales to the ultimate consumer that contain 20% or less biodiesel or renewable diesel, the dealer may identify the blended product sold as “Contains up to 5% biodiesel or renewable diesel – state diesel tax $0.19 per gallon” or “Contains up to 10% biodiesel or renewable diesel – state diesel tax $0.18 per gallon” or “Contains up to 15% biodiesel or renewable diesel – state diesel tax $0.17 per gallon” or “Contains up to 20% biodiesel or renewable diesel – state diesel tax $0.16 per gallon.”

On blends that contain more than 20% biodiesel or renewable diesel fuel, the volume must be identified to the nearest whole gallon or nearest whole percentage, with the appropriate state diesel tax rate. Identifying the volume of biodiesel and renewable diesel fuel on a sales invoice when sold by a dealer through a retail pump is not an option.

*Originally published in the May edition of Tax Policy News – a monthly newsletter about Texas tax policy at http://www.window.state.tx.us/taxinfo/taxpnw/tpn2012/tpn1205.html

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Effective July 1, 2012: Changes to the Petroleum Products Delivery Fee

House Bill 2694, passed during the 82nd Legislature Regular Session (2011), reauthorized and made permanent, the fee on the delivery of certain petroleum products that was set to expire on Aug. 31, 2011. The law requires the Texas Commission on Environmental Quality (TCEQ) by rule to set the amount of the petroleum product delivery fee rates. The fee applies to all petroleum products imported into Texas or withdrawn from a Texas bulk storage facility and delivered into cargo tanks or barges. The fee set by the TCEQ is based upon total net gallons delivered, as shown in this schedule, beginning July 1, 2012:

Gallons Delivered Fee
Less than 2,500 net gallons $  2.75
2,500 but less than 5,000 net gallons $  5.50
5,000 but less than 8,000 net gallons $  8.65
8,000 but less than 10,000 net gallons $11.00
10,000 or more net gallons, per 5,000 or increment thereof $  5.50

 

For gasoline deliveries of at least 7,000 but less than 8,000 net gallons (whether single product type or split load), special rules apply:

  • If the gasoline portion of the delivery is less than 7,000 net gallons, the fee is $8.65.
  • If the gasoline portion of the delivery is at least 7,000 net gallons, the total load is presumed to be at least 8,000 gallons and the fee is $11.00.

For more information, please see the Petroleum Products Delivery Fee page on our website.

*Originally published in the May edition of Tax Policy News – a monthly newsletter about Texas tax policy at http://www.window.state.tx.us/taxinfo/taxpnw/tpn2012/tpn1205.html

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Don Kurt Dunn, 31, of Fort Worth

Don Kurt Dunn, 31, of Fort Worth, entered a plea of guilty to Evading Motor Fuel Tax, a second-degree felony. Dunn was sentenced to 8 years deferred adjudication and ordered to serve 24 days confinement in the Travis County Jail as a condition of probation. Dunn was ordered to pay a $4,000 fine, to complete 200 hours of community service, and to have no contact with co-defendant Donald Ray Scott III. Dunn’s case, filed as cause number D1DC10-900216, was prosecuted in Travis County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

 

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Donald Ray Scott III, 38, of Fort Worth

Donald Ray Scott III, 38, of Fort Worth, entered a plea of guilty to Evading Motor Fuel Tax, a second-degree felony. Scott was sentenced to 8 years deferred adjudication and ordered to serve 50 days confinement in the Travis County Jail as a condition of probation. Scott was ordered to pay a $10,000 fine, $33,068 in restitution to the Comptroller of Public Accounts, to complete 250 hours of community service, and to have no contact with co-defendant Don Kurt Dunn. Scott’s case, filed as cause number D1DC10-900218, was prosecuted in Travis County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Charles Jerome Hutchinson, 44, of Humble

Charles Jerome Hutchinson, 44, of Humble, was arrested after being indicted June 11th by a Travis County Grand Jury for Evading Motor Fuel Tax, a second-degree felony. Hutchinson is accused in court documents of evasion at various points in the chain of distribution including the acquisition, transportation, and sale of motor fuel. Hutchinson’s case, filed as D1DC12-900112, is pending in Travis County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Michael James Merrill, 40, of Snyder

Michael James Merrill, 40, of Snyder, was arrested after being indicted June 11th by a Travis County Grand Jury for second-degree felony motor fuel tax fraud. Merrill is accused in court documents of Evading Motor Fuel Tax by intentionally and knowingly using dyed diesel for the operation of a motor vehicle on a public highway, storing motor fuel upon which taxes were owed but not paid, and failing to remit to the Comptroller motor fuel tax funds required to be collected and remitted. Merrill’s case, filed as cause number D1DC12-90032, is pending in Travis County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Salvador Armendariz, 63, of El Paso

Salvador Armendariz, 63, of El Paso, was convicted of two second-degree motor fuel tax fraud felonies and sentenced to 4 years imprisonment on each case, to run concurrently. The sentences will be served in the Institutional Division of the Texas Department of Criminal Justice. Armendariz pled guilty to Engaging in a Motor Fuel Tax Fraud Scheme, and to Illegal Sale, Distribution, or Storage of Motor Fuel. Armendariz was one of seven individuals arrested as part of “Operation Filler Up,” an investigation into thefts of untaxed, unleaded fuel from an El Paso fuel terminal. His cases were prosecuted as cause numbers D1DC11-900045 and -329 in Travis County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Alexander Sanchez, 27, of Eldorado

Alexander Sanchez, 27, of Eldorado, was indicted by a Pecos County Grand Jury after being arrested April 25 for Evading or Attempting to Evade Motor Fuel Tax, a second-degree felony. Sanchez is accused in court documents of intentionally and knowingly evading or attempting to evade motor fuel tax by delivering dyed diesel fuel into the fuel supply tank of a motor vehicle for operation on a public highway. The case, filed as cause number 3204, is pending in Pecos County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Ronald Martin, 63, of Abilene

Ronald Martin, 63, of Abilene, was indicted by a Taylor County Grand jury after being arrested for a second-degree felony motor fuel tax offense. Morris is accused in court documents of intentionally and knowingly evading and attempting to evade motor fuel tax. The case, filed as cause number 18471B, is pending in Taylor County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Steve Craig Morris, 44, of Abilene

Steve Craig Morris, 44, of Abilene, was indicted by a Taylor County Grand Jury after being arrested for a third-degree felony motor fuel tax offense. Morris is accused in court documents of intentionally and knowingly transporting dyed diesel motor fuel without delivering shipping documents. The case, filed as cause number 18472B, is pending in Taylor County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Calvin Laird, Jr., 50, of Lawn

Calvin Laird, Jr., 50, of Lawn, was indicted by a Taylor County Grand Jury after being arrested for a second-degree felony motor fuel tax offense. Lawn is accused in court documents of intentionally and knowingly evading and attempting to evade motor fuel tax by delivering dyed diesel into the fuel tank of a motor vehicle for use upon a public highway. Laird’s case, filed as cause number 24940-A, is pending in Taylor County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Jose Maria Delbosque, 36, of Odessa

Jose Maria Delbosque, 36, of Odessa, was indicted by a Midland County Grand Jury for Engaging in Organized Crime relating to committing theft of diesel fuel from West Texas Gas with three or more persons. The offense is a third-degree felony. Delbosque is additionally indicted for the underlying theft and a related motor fuel tax fraud offense. Delbosque’s case, filed as cause number CR39786, is pending in Midland County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Kenneth Walter Moore, Jr., 33, of Weatherford

Kenneth Walter Moore, Jr., 33, of Weatherford, was sentenced after entering a plea of guilty February 14 to Engaging in a Motor Fuel Tax Scheme, a second-degree felony. Moore was accused by indictment of engaging in motor fuel transactions without a license. He was sentenced to 2 years of deferred adjudication and ordered to pay a $5,000 fine, restitution of $600, and perform 160 hours of community service.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Charles Clay Clark, 24, of Robert Lee

Charles Clay Clark, 24, of Robert Lee, was convicted of second-degree felony motor fuel tax fraud and sentenced to 10 years in the Institutional Division of the Texas Department of Criminal Justice, probated for 10 years. Clark admitted to intentionally and knowingly evading and attempting to evade motor fuel taxes by using, concealing, and delivering dyed diesel fuel for the operation of a motor vehicle upon a public highway. The case, filed as cause number C-11-0472-5B, was prosecuted in the 340th District Court of Tom Green County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Randy Don Jeffreys, 51, of Lubbock

Randy Don Jeffreys, 51, of Lubbock, was arrested after being indicted by a Travis County Grand Jury for motor fuel tax fraud. Jeffreys is accused by indictment of intentionally and knowingly evading and attempting to evade motor fuel tax by using dyed diesel in a motor vehicle for use on a public highway. The case, filed as D1DC12-900013, is pending in Travis County District Court.

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Shane Gloeckler, 41, of Joshua

Shane Gloeckler, 41, of Joshua, was arrested after being indicted by a Travis County Grand Jury for motor fuel tax fraud. Gloeckler is accused by indictment of intentionally and knowingly evading and attempting to evade motor fuel tax, including by intentionally and knowingly delivering dyed diesel into a motor vehicle for use on a public highway. Gloeckler’s case, filed as cause number D1DC12-900012, is pending in Travis County District Court.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Mohammad Hanif, 51, of Spring

Mohammad Hanif, 51, of Spring, was sentenced to four years of deferred adjudication after entering a plea of guilty to second-degree felony motor fuel tax fraud. Hanif was accused by indictment of intentionally and knowingly accepting a delivery of motor fuel without shipping documents, while acting as a dealer. As conditions, Hanif was fined $10,000, ordered to pay $832 in restitution, and ordered to perform 160 hours of community service.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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Jimmy Dane Bishop, 58, of Winters

Jimmy Dane Bishop, 58, of Winters, was sentenced to 4 years of deferred adjudication in two felony cases involving motor fuel tax fraud. Bishop admitted to the allegations contained in the indictments, which included that he using dyed diesel in a motor vehicle on a public highway, made and delivered false tax reports to the Comptroller, failed to remit motor fuel tax funds, and made and delivered to the Comptroller reports required to be made by law which contained false information. Bishop was ordered to pay a $5,000 fine and perform 160 hours of community service. The cases, filed as cause numbers D1DC-900075 and -76, were prosecuted in Travis County.

*Originally published at http://www.window.state.tx.us/about/cid/case_news.html

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