The Appeal of R. Ramos, dba La Tiendita Markey, Boneyard, and Café Del Sol, decided recently by the Office of Tax Appeals, resembled many of the appeals involving unreported taxable sales by restaurants, but was notable because the appellant was granted a small amount of relief.
The OTA ordered the CDTFA to correct an erroneous calculation of the sales of cold food at one of the locations, noting that there was no dispute that the agency miscalculated the cold food sales ratio.
“CDTFA has not provided any explanation to support its finding that the improperly calculated exempt cold food sales ratio is appropriate,” the OTA wrote. “As such, OTA finds that CDTFA’s unqualified refusal to correct its mathematical error is unreasonable. Accordingly, OTA concludes that adjustments to the audit measure are warranted ….”