Opinion ID: 1298687
Heading Depth: 1
Heading Rank: 6

Heading: Commissioner's Audit

Text: Between 1986 and 1990, relators established a tax nexus to Minnesota by conducting some business within the state. During the audit period, relators filed Minnesota corporate franchise tax returns on a separate entity basis. The Commissioner audited relators' returns for the 1986 and 1987 tax years and on November 29, 1993, issued notices of change in tax for those years. As part of the basis for the notices of change in tax, the Commissioner determined that Amoco Corporation and its subsidiaries existed as a unitary business. Relators protested the notices of change through administrative appeal. The Commissioner then audited relators' returns for the 1988, 1989, and 1990 tax years and on August 12, 1996, issued notices of change in tax for those years. The Commissioner again found that Amoco Corporation existed as a unitary business. Relators timely protested the August 12, 1996, notices of change through administrative appeal. On January 6, 1997, the Commissioner began a full unitary audit of relators' business. In a separate matter, one of the relators, AOC, filed amended corporate franchise tax returns claiming a net refund for the audit period. AOC based its refund claims on the argument that revenue from its sales of gasoline was not subject to the corporate franchise tax because AOC was subject to the gasoline excise tax. AOC claimed it was entitled to a net refund of $1,360,915. The Commissioner denied the refund claims in a Notice of Change in Tax dated December 21, 1998. On February 17, 1999, AOC protested the refund denial through an administrative appeal.