|(a) Due date to accept or reject the Position Letter;
extensions. The taxpayer must accept or reject the Position Letter,
in whole or in part, within 45 days after the day the Position Letter
is dated. The taxpayer may request an extension of this deadline from
the assigned Tax Hearings Attorney. The first request to extend the
deadline up to an additional 45 days will be granted by the assigned
Tax Hearings Attorney. Additional extensions of the deadline to accept
or reject the Position Letter will not be granted unless the taxpayer
demonstrates there is good cause for the extension and that the need
is not caused by neglect, indifference, or lack of diligence.
(b) Selection form. The taxpayer must sign and return
to the assigned Tax Hearings Attorney the selection form provided
as an attachment to the Position Letter. The taxpayer must select
one of the following options.
(1) Option One: Agree with the Position Letter. If
the taxpayer selects this option, the General Counsel of the Hearings
and Tax Litigation Section will also sign the form, which will then
be considered a resolution agreement under §1.31 of this title
(relating to Resolution Agreements). The tax liability or refund will
be calculated consistent with the Position Letter, including any applicable
penalty or interest, and a final billing will be sent to the taxpayer.
The taxpayer will not be required to respond to the amended determination
and final billing, other than by payment, unless the taxpayer disagrees
with the amount of the amended determination or final billing.
(2) Option Two: Disagree with the Position Letter.
The taxpayer may reject some or all of the conclusions of the Position
Letter by selecting this option and may include a Reply to the Position
Letter as provided in subsection (c) of this section.
(c) Reply to the Position Letter. At the time the taxpayer
submits the selection form described in subsection (b)(2) of this
section, the taxpayer may also submit a Reply to the Position Letter.
The Reply to the Position Letter should address all unresolved contentions
and provide legal and factual support for the taxpayer's position.
If the Position Letter does not address specific contentions or contested
items that the taxpayer believes should be included as part of the
contested case, the Reply to the Position Letter should state those
contentions or contested items so that they may be included in the
Notice of Hearing for consideration by the ALJ. If the taxpayer has
previously provided the facts, legal arguments, information, and documents
it intends to submit for consideration at the time the Reply to the
Position Letter is due, the taxpayer may return the selection form
indicating disagreement with the Position Letter without a Reply to
the Position Letter.
(d) If the taxpayer fails to timely respond to the
Position Letter, the comptroller may dismiss the contested case. See §1.32
of this title (relating to Dismissal of Case). In such case, an amended
final determination or final billing in accordance with the positions
set forth in the Position Letter will be sent to the taxpayer. The
contested case will be concluded unless the taxpayer files a motion
for rehearing following the procedures stated in §1.35 of this
title (relating to Motion for Rehearing).