02-0636

Sales Tax

Signed 8/27/02

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

PETITIONER, ) ORDER

)

Petitioner, ) Appeal No. 02-0636

)

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. Laurie Payne, from the Taxpayer Services Division

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 August 12, 2002.

The sales tax and tourism tax returns for Petitioner were not timely filed or paid for October 1999 through June 2001. Petitioner has requested a waiver of the penalties thereon.

Petitioner represented it had hired an accounting firm to handle all of its accounting functions, including reporting to tax agencies. The accounting firm did not perform the tasks and did not indicate to Petitioner that it was in default. Petitioner has now terminated the services of that firm and has hired another accounting firm to take care of its tax matters. When asked why Petitioner did not respond when notices and liens were sent the response was that they were simply "overwhelmed" with the compliance requirements for the various state agencies.

In addition to the periods at issue in this proceeding for which compliance was not timely, the sales and tourism tax returns were not timely filed or paid from October 1998 through September 1999. Petitioner has paid the late penalties associated with those time periods, and has not had a waiver for any time periods.

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 number of delinquencies related to this taxpayer are far too excessive for the Commission to find reasonable cause. Petitioner has a responsibility to file and pay all sales tax returns.

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 tax returns at issue herein. 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 27th day of August , 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 27th day of August , 2002.

 

 

 

Pam Hendrickson R. Bruce Johnson

Commission Chair Commissioner

 

 

 

Palmer DePaulis Marc B. Johnson

Commissioner Commissioner