01-1544

Sales Tax

Signed 6/4/02

BEFORE THE UTAH STATE TAX COMMISSION

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PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 01-1544

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION ) Tax Type: Sales Tax

OF THE UTAH STATE TAX )

COMMISSION, ) Tax Period:

)

Respondent. ) Judge: Davis

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Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: No one appeared

For Respondent: Ms. Jan Sanchez, from the Taxpayer Services Division

Ms. Laurie Payne, 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 May 8, 2002.

Petitioner has requested a waiver of penalties and interest based upon having paid substantial amounts of penalties and interest, but not really offering any reason for such a waiver.

In June 2000, Petitioner submitted an Offer in Compromise, and that offer was approved by the Taxpayer Services Division. As part of that offer, Petitioner had 30 days in which to pay, but payment was not received in accordance with the offer that had been made. In December 2000, Respondent sent to Petitioner a letter notifying Petitioner that if payment was not made the acceptance of the Offer in Compromise would be withdrawn. In January 2001, Respondent sent to Petitioner a letter indicating that the approval of the Offer in Compromise was withdrawn because of Petitioner's failure to comply with the approved terms of the offer which had been made.

Following that matter, Respondent did receive payments from the sale of some property by attaching those sale proceeds, and Petitioner is now requesting that the penalties and interest be waived to the level in the prior approved Offer in Compromise.

Part of the approval of the Offer in Compromise was that Petitioner would remain current on his tax obligations to the State of Utah. However, since that time, there have been at least eight (8) more periods with delinquencies of either not filing, not paying, or both not filing or paying. In addition, there were numerous prior delinquencies for periods prior to the periods involved in the earlier Offer in Compromise.

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 not been shown to justify a waiver of the penalty or interest associated with the sales tax returns of Petitioner. 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 4^th day of June , 2002.

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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 4^th day of June , 2002.

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner