(a) Discovery conducted during a contested case does
not modify Tax Code recordkeeping or disclosure requirements. The
Tax Code requires a taxpayer to maintain and produce contemporaneous
records and supporting documents appropriate to the tax or fee for
which the taxpayer is responsible. A taxpayer is required to produce
documents and information concerning the transactions in question
to substantiate and enable verification of the taxpayer's contentions
concerning the amount of tax, penalty, or interest to be assessed,
collected, or refunded in a contested case. Nothing in this section
modifies any statute or any section of this title requiring a taxpayer
to keep records and documentation, or to provide information to the
comptroller. General Tax Code sections governing a taxpayer's obligations
to maintain or produce records and documents include, but are not
limited to, Tax Code, §111.0041 ("Records; Burden to Produce
and Substantiate Claims") and Tax Code, §111.105 ("Tax Refund;
Hearing"). The Tax Code may also impose a duty to keep records or
provide information specific to a certain tax or fee; see, for example,
Tax Code, §171.205 ("Additional Information Required by Comptroller,"
relating to franchise tax) and Tax Code, §151.025 ("Records Required
to Be Kept," relating to sales tax).
(b) Informal exchange of information encouraged. Before
SOAH acquires jurisdiction over a contested case (see 1 TAC §155.51),
the parties are encouraged to informally request and exchange documents
and other information to narrow and define the disputed issues and
reach an agreed resolution of the contested case before the case is
docketed at SOAH. See §1.31 of this title (relating to Resolution
Agreements).
(c) Formal discovery. Discovery in a contested case
may begin when SOAH acquires jurisdiction. See 1 TAC §155.251(a)
and §1.20 of this title (relating to Docketing Oral and Written
Submission Hearings). Discovery shall be conducted under the SOAH
Rules of Procedure governing discovery. See 1 TAC §§155.251,
155.253, 155.255, 155.257, and 155.259.
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