Rhode Island: Sales Tax Handbook
How to appeal a sales tax audit or penalty in Rhode Island
In Rhode Island, the Division of Taxation will frequently audit business sales tax returns and may issue penalties or punishments for tardy filing, incorrect reporting, willful omissions, or other violations. Penalties can range from fines to revocation of your sales tax permit depending on the infraction.
If you disagree with a penalty or ruling made by the Rhode Island Division of Taxation, you have several options you can pursue in appealing their decision. This page contains basic guidelines for appealing to the Division of Taxation, to an administrative appeal body, and through the courts.
Sales Tax Statute of Limitations in Rhode Island
In sales tax law, the "statute of limitations" is the maximum amount of time state authorities have to investigate and begin potential audit or prosecution related to a a filed Rhode Island sales tax return in the event of underpayment, incorrect reportings, etc. The Division of Taxation cannot begin an audit or issue a penalty after this timeframe.
The statute of limitations in Rhode Island is three years from later of either the fifteenth day of the month directly after the month in which the return was due or the return filing date.
Appealing to the Division of Taxation in Rhode Island
If you do not agree with a penalty or decision made by the Rhode Island Division of Taxation, you have the right to file an appeal and ask for reconsideration. In the case of a department appeal, an official petition must be filed with the Tax Administrator within thirty days after mailing notice of assessment.Top
Administrative Sales Tax Appeals in Rhode Island
This district has no administrative appeal bodyTop
Judicial Sales Tax Appeals in Rhode Island
If all other appeal avenues fail, businesses can make a final appeal in the state court system. When working with judicial appeals, the suit must be filed with the Sixth Division of the District Court within thirty days after mailing of notice of final decision
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