APPEAL 00-1125

SALES TAX

SIGNED 3/9/01

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, )

) ORDER

Petitioner, )

) Appeal No. 00-1125

v. )

) Account No. #####

TAXPAYER SERVICES DIVISION )

OF THE UTAH STATE TAX ) Tax Type: Sales Tax

COMMISSION, )

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER

For Respondent: Ms. Vickie Christofferson, from the Taxpayer Services Division

STATEMENT OF THE CASE

This matter came before the Commission for an Initial Hearing on January 3, 2001 pursuant to the provisions of Utah Code Ann. '59-1-502.5.

Petitioner's sales tax remittance for April, 2000 was late, and a penalty was charged thereon, together with the loss of the vendor discount.

Petitioner represented that he had an employee that was sick for four days, so he had to personally substitute for the employee in the operation of the business. He dashed upstairs when he realized the payment needed to be made on that day, and he was physically on the computer and telephone at 3:00 p.m. on the due date trying to transmit the funds. The call started before 3:00 p.m. and was completed at 3:03 p.m., so the computer would not accept the due date as the settlement date, so a settlement date of the next day was utilized. Respondent has confirmed that the transaction was complete at 3:03 p.m. on the due date, so it was three (3) minutes late. Accordingly, penalties were incurred and the vendor discount was lost.

In addition to the delinquency at issue in this matter, Petitioner was also delinquent on October 1997, February 1998, and October 1998. The penalty for all three of those periods was waived.

In addition, there was an additional delinquency for August 1999, and waiver of that penalty was denied.

APPLICABLE LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. Utah Code Ann. '59-1-401(10).

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has been shown to justify a waiver of the penalty associated with the sales tax return for April 2000. In addition, the vendor discount should be reinstated. It is so ordered.

This decision does not limit a party's right to a Formal Hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 9^th day of March , 2001.

____________________________________

G. Blaine Davis

Administrative Law Judge

BY ORDER OF THE UTAH STATE TAX COMMISSION:

The Commission has reviewed this case and the undersigned concur in this decision.

DATED this 9^th day of March , 2001.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner