After conducting a two-day trial before the Division of Tax Appeals, Aaron Carbone obtained a determination completely cancelling a sales and use tax assessment issued against a small delicatessen. The New York State Department of Taxation and Finance, Division of Taxation had performed a sales and use tax audit of the deli utilizing an alternative audit methodology. Based upon the Department findings, it issued a Notice of Determination finding that the deli owed over $ 240,000 in additional sales tax along with interest and penalties making its total liability more than $ 380,000. However, Attorney Carbone proved at trial that the audit methodology lacked a rational basis and must be cancelled. Administrative Law Judge Bennett writes in her decision, “Accordingly, the Division has failed in every regard to show the methodology had a rational basis.” A full copy of the decision is available through the Division of Tax Appeals website at: http://www.nysdta.org/Determinations/823244.det.pdf