Blake Nedbalek

Tax Director

Former Texas Comptroller State Tax Auditor & Supervisor, 25 Years

  • Phone/Fax/SMS: 512-361-1511
  • Blake.Nedbalek@TexasTaxGroup.com

BBA, Accounting; Texas A&M University; College Station, TX; 1982

Experience

  • Texas Comptroller’s Office – 1983 to 2008 (25 Years)
  • Office of Inspector General – 2009 to 2011 (3 Years)
  • Texas Workforce Commission – 2015 to 2016 (1 year)

Practice Areas

  • Sales and Use Tax
  • Direct Pay Sales Tax
  • Mixed Beverage Gross Receipts Tax
  • Hotel Occupancy Tax
  • Motor Vehicle Sales Tax
  • Franchise Tax
  • Motor Fuels Tax
  • Bingo Tax
  • Cigarette and Tobacco Tax
  • Interstate Motor Carrier Tax
  • Interstate Fuels Tax Agreement (IFTA)
  • Natural Gas Tax (Marketing Cost Refunds)
  • Interest on Sales Tax
  • Sexually Oriented Business (SOB) Admissions Fee
  • Certificate of No Tax Due Requests (protects purchaser of business from liability of tax debt incurred by seller of business)
  • Nexus
  • Voluntary Disclosure Agreements
  • Managed Audits
  • Contract Audits
  • Refund Requests (Manufacturing Credits, Predominant Use Studies, etc.)
  • Fraud Audit Additional 50% Penalty
  • Audit Settlements
  • Reconciliation Conference
  • Dispute Resolution Conference
  • Redetermination Hearing
  • Taxability Research
  • Audit Sampling and Projection Methods and Procedures (including CAMS audits)
  • Cost Reports (per Health and Human Services Rate Analysis Division)
  • Single Tax Audits (Colleges, Independent School Districts and Non-Profit Organizations receiving funding through bonds from State of Texas)
Tax Auditor, Texas Comptroller of Public Accounts (Houston South Audit – 1983 to 1987; Austin Audit – 1991 to 1996)

  • Independently performed Sales Tax, Franchise Tax, Bingo Tax, Motor Vehicle Tax, IMC Tax, Hotel Occupancy Tax, Mixed Beverage Tax, Fuels Tax audits and refund verifications (manufacturing credit, Predominant Use studies and Natural Gas Tax marketing cost) for businesses including manufacturers, contractors, banks, wholesalers, service providers, newspapers, telecommunications service, advertising agencies, agricultural, hospitals, auto dealers, fuel distributors, bars, restaurants, convenience stores and other retail businesses
  • Promoted to Auditor IV within 4 years; noted for having “keen sense of taxability”; excelled at submitting productive audit leads
  • Served as Office Audit Selector (Houston South – 1985 to 1987; Houston North – 1986 to 1987); Austin – 1991 to 2006)
  • Wrote Office Audit Select Procedures Manual
Audit Select Program Group Leader – Texas Comptroller of Public Accounts (Audit Division Headquarters – 1987 to 1991)

  • Coordinated Audit Division Audit Select Program
  • Supported 17 in-state and 4 out-of-state audit field offices to assist audit office managers and audit selectors develop in-office audit select programs, and provide advice for use of audit selection tools and procedures
  • Wrote audit selection procedures manual
  • Conducted Audit Select Seminar for Audit Office managers and audit selectors in 1987 and addressed managers at annual Audit Division managers’ meetings relating to Audit Select topics
  • Developed information sources such as FAA report transactions of aircraft involving Texas sellers/purchasers and PIERS import data showing imports of high value tangible personal property by Texas entities, etc. where Use Tax might be due
  • Used SAS to create computer programs to access taxpayer database and create reports to identify potential audit candidates; customized reports were provided to audit offices as requested to allow them to efficiently select audits using specific criteria
  • Worked with Tennessee, Louisiana and other states’ tax revenue departments – shared information, and developed audit selection tools, systems and databases; this included regression analysis statistically based scoring program that identifies “high score” audit candidates
Audit Group Supervisor, Texas Comptroller of Public Accounts (Austin Audit – 1996 to 2006)

  • Supervised staffs of 8 to 12 tax auditors
  • Conducted monthly workload reviews and field visits to monitor my auditors’ audit procedures and activities; ensured that auditors utilized efficient planning, developed and documented audit plans appropriately, prepared adjustment schedules with no errors and in accordance with tax laws and division audit procedures
  • Provided feedback and advice to auditors to develop their audit expertise
  • Ensured that auditors received 80 hours of appropriate ongoing training per year
Mixed Beverage Tax Audit Program Coordinator – Texas Comptroller of Public Accounts (Audit Division Headquarters – 2006 to 2008)

  • Set annual operating budget, by office, for Mixed Beverage Tax audit completions
  • Provided Mixed Beverage Tax audit training for Audit Division auditors
  • Provided advice to audit office management, auditors, and Legal Services Staff pertaining to Mixed Beverage Tax and MB Tax audit procedures
  • Reviewed requests for Certificate of No Tax Due for all taxes administered by Comptroller’s Office to decide whether audits needed to be performed; created and sent high priority audit assignments to audit offices as necessary
Special Projects and Task Forces – Texas Comptroller of Public Accounts (1987 to 2008)

  • Represented Audit Division in joint division task force to revise SIC Code Classification database pursuant to 1987 changes by Federal Office of Management and Budget
  • Helped facilitate conversion of SIC code to NAICS code classifications for approximately 1 million entities conducting business in Texas, following implementation of NAFTA in 1993
  • Worked with Tax Policy, other agency personnel, Texas Department of Motor Vehicles, and County Tax Assessor/Collectors, during development and implementation of statewide County Tax Assessor automated motor vehicle titling and registration system (RTS)
  • Was a key team member and contributor on special project task force during development of scope and framework for Revenue Opportunity Program/Business Tax Revenue Team “desk audit” program
  • Texas Vendor Project – Program was created to ensure that out-of-state vendors doing business with State of Texas agencies are in compliance with applicable Texas taxes. My audit group was temporarily assigned to assist Business Activities Research Team.  We were responsible for performing research and desk audits, then using telephone calls and written correspondence to identify taxpayers who had nexus for Texas taxes, but were not permitted or in compliance.  Auditors “set up” taxpayers (primarily for Sales Tax and Franchise Tax), had them file applicable tax returns and remit tax due, and then returned them to “good standing” status. I monitored auditor workloads, helped develop audit procedures, and wrote procedures manual for the project.
  • Worked on task forces with other agency personnel during 80th Legislative Session to create and implement HB 11 and HB 1751. HB 11 requires distributors and wholesalers of ale, beer, wine, cigarettes, cigars, and tobacco products to electronically submit monthly sales summaries to retailers.  The bill was intended to provide audit tool to Audit Division to identify potential under-reporting of Sales Tax and Mixed Beverage Gross Receipts Tax by restaurants, bars and convenience stores.  HB 1751, commonly referred to as “the pole tax”, was a new fee imposed on “sexually oriented businesses” (primarily topless bars), based on admissions.