01-1334

Sales Tax

Signed 2/25/02

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-1334

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Sales Tax

OF THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 2000

)

Respondent. ) Judge: Davis

_____________________________________

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: PETITIONER REP

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

STATEMENT OF THE CASE

This matter came before the Utah State Tax Commission for an Initial Hearing pursuant to the provisions of Utah Code Ann. '59-1-502.5 on January 17, 2002.

On January 31, 2001, Petitioner prepared and mailed the sales tax return for the fourth quarter of 2000. The payment form was inserted in the envelope so that Petitioner's address was showing through the window rather than the Tax Commission address. That letter was delivered to the shop in CITY.

PETITIONER REP represented she was working in the shop during that time period which was right around Valentine's Day, which is the busiest period of the year, and did not notice that the tax payment had been returned to her until approximately two weeks after the return was due. Petitioner called a Tax Commission employee and was told to deliver the check as soon as possible, which she did.

The sales tax returns for Petitioner have been late or have been paid late five periods within the last three years. The fourth quarter of 1999 was filed four months late, the first quarter of 2000 was filed one month late, the second quarter of 2000 was filed one month late and has not yet been paid (Petitioner is making payments), the third quarter of 2000 was filed timely but paid in two separate payments, and the fourth quarter of 2000 is the period at issue in this case. There have been no prior waivers of any penalties.

Petitioner still owes approximately $$$$$ on the sales tax for prior quarters.

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).

DISCUSSION

The reason Petitioner represents the return was not received timely at the Tax Commission would normally be found to be reasonable cause. However, where there is a pattern of delinquency, the Commission is less inclined to find that such a reason constitutes reasonable cause.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the penalty for the fourth quarter of 2000 sales tax return. 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 25^th day of February , 2002.

____________________________________

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 25^th day of February , 2002.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner