02-0299

Sales Tax

Signed 7/16/02

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 02-0299

)

v. ) Account No. #####

)

TAXPAYER SERVICES DIVISION OF ) Tax Type: Sales Tax

THE UTAH STATE TAX )

COMMISSION, ) Tax Year: 02/98 - 01/01

)

Respondent. ) Judge: Davis

_____________________________________

 

Presiding:

G. Blaine Davis, Administrative Law Judge

Appearances:

For Petitioner: No one appeared

For Respondent: 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 June 13, 2002.

The sales tax return of Petitioner was audited for the period February 1998 through January 2001. A Notice of Audit Assessment was sent to Petitioner on June 27, 2001 requesting that payment of certain amounts be made within 30 days. However, Petitioner did not make payment of the sales tax amount until December 7, 2001, five and a half months after the audit. Therefore, penalty and interest were imposed at the statutory rate.

Petitioner has requested a waiver of the penalty and interest based upon representations that they were in transition offices, moving locations, and some information may have been inadvertently lost or destroyed in the move. In addition, they had a change in bookkeepers which prevented them from fully verifying the original audit.

Petitioners have had nine prior delinquencies during the three years prior to the audit assessment.

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 reasons set forth by Petitioner are very questionable as to whether they would normally constitute reasonable cause. However, where there are nine previous delinquencies in the three years prior to the time of this delinquency, the pattern of delinquencies is far too great for the Commission to find reasonable cause for the reason stated by Petitioner.

DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of either the penalty or interest associated with the February 1998 through January 2001 audit period. 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 16th day of July , 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 16th day of July , 2002.

 

 

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner