Tax Court: Saulwil, Inc. v. Dir., Div. of Taxation, Docket No. 014062-2013; Samuel and Louise Hammer v. Dir., Div. of taxation, Docket No. 014061-2013; opinion by Sundar, J.T.C.,decided January 10, 2020. For plaintiff – Robert A. Fee (Robert A. Fee, Esq., attorneys); for defendant - Heather Lynn Anderson (Gurbir S. Grewal, Attorney General of New Jersey, attorney).
Held: Defendant’s decision that the books and records of corporate plaintiff were inadequate, which therefore required that its reported sales be increased using an estimated markup, was unreasonable and unsupportable. Therefore,defendant’s final determination assessing additional sales tax on the corporate plaintiff based on its markup methodology is reversed. Also reversed is defendant’s final determination imposing additional gross income tax upon the individual plaintiffs on the constructive receipt of the deemed additional corporate sales.