Prepared Sandwiches Were Deemed Taxable as Food for Immediate Consumption
In BF Enterprises v. Department of Treasury, Michigan Tax Tribunal, No. 440243, June 28, 2013, received August 29, 2013, a Michigan sales tax assessment against a convenience store/gas station that was based on a two-month sample period was upheld because the taxpayer failed to maintain adequate records. In such circumstances, it is proper for the Department of Treasury to assess the amount of tax due based on information that is available or that becomes available to it, such as third-party invoices. Furthermore, the issuance of three audit reports was appropriate, as the adjustments resulted from additional information provided by the taxpayer. Also, the assessment of sales tax on sandwiches prepared and sold by the taxpayer was proper, as these items were not sold by weight or volume and met the definition of "prepared food."