| (a) Content of Statement of Grounds. The Statement
of Grounds must contain the reasons the taxpayer disagrees, in whole
or in part, with the agency's determination, refund denial, or other
action. The taxpayer must list and number the contested items or transactions,
individually, or state one or more general contentions that identify
a category or categories of contested items or transactions. For each
contested item, transaction, or general contention, the taxpayer must
also state the factual basis and the legal grounds that the tax should
not be assessed or the tax should be refunded. If the taxpayer disagrees
with the agency's interpretation of the law, specific legal authority
must be cited in support of the taxpayer's arguments.
(b) Signature requirement.
(1) The Statement of Grounds must be signed by the
taxpayer or by the authorized representative of the taxpayer. The
individual signing the Statement of Grounds will be the taxpayer's
designated representative for notice pursuant to §1.3 of this
title (relating to Representation and Participation).
(2) A Statement of Grounds that is filed by e-mail
or other electronic means complies with the signature requirement
under paragraph (1) of this subsection if the Statement of Grounds
identifies the individual who is the taxpayer's designated representative
for notice pursuant to §1.3 of this title.
(c) Defective Statement of Grounds. If the Statement
of Grounds or the power of attorney authorizing an individual to sign
the Statement of Grounds is defective, the agency will notify the
taxpayer of the actions required to correct the defect. Defects in
the Statement of Grounds include, but are not limited to, a failure
to state any contested items or contentions under subsection (a) of
this section, or a failure to include a signature as required by subsection
(b) of this section. If the taxpayer does not correct the defect by
the deadline specified by the agency, the hearing request may not
be granted.
(d) Contested items or contentions not included in
Statement of Grounds. If an item, transaction, or contention is not
listed in the Statement of Grounds or otherwise provided consistent
with this subchapter, it may be excluded from the Notice of Hearing.
(e) Motion to dismiss for failure to state a contested
case issue in the Statement of Grounds. If the taxpayer's Statement
of Grounds fails to list and number items or transactions, individually
or by category, or fails to state the factual basis and legal grounds
upon which relief is sought, the contested case may be dismissed for
failure to state a contested case issue for which relief can be granted.
For the procedures by which the AHS may move for dismissal based on
a Statement of Ground's failure to state a contested case issue for
which relief may be granted, see §1.32 of this title (relating
to Dismissal of Case).
(f) Preliminary conference and request to provide additional
information. If a taxpayer's Statement of Grounds raises issues that
cannot be resolved from the material contained in the audit or Statement
of Grounds, the agency may ask the taxpayer to participate in a preliminary
conference or to provide additional evidence. The preliminary conference
or request for additional information is intended to encourage an
early resolution of the contested case before it is assigned to a
Tax Hearings Attorney. A request for additional information may include
a written request that resale or exemption certificates to support
tax-free sales must be submitted within 90 days from the date of the
request, or by the date agreed to by the comptroller and the seller.
Pursuant to Tax Code, §151.054 and §151.104, resale or exemption
certificates that are not submitted within the time limit will not
be accepted as evidence to support a claim of tax-free sales by the
ALJ in SOAH proceedings.
(g) The Statement of Grounds may be amended up to the
time that a Reply to the Position Letter is due, subject to any applicable
limitations periods. The Statement of Grounds does not toll the limitations
period for any additional contested items, transactions, or general
contentions related to refund claims. See §1.13 of this title
(relating to Taxpayer's Acceptance or Rejection of Position Letter,
and Reply to Position Letter) for more information about the Reply
to the Position Letter.
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