Penalty and Interest
††††††††††††††††††††††††††††††††††††† BEFORE THE UTAH STATE TAX COMMISSION
)†††† Appeal No. 02-1710 ††††††††††
)†††† Account No. ††† #####
TAXPAYER SERVICES DIVISION,†††††††††††††† )
UTAH STATE TAX COMMISSION,†††††††††††††† )†††† Tax Type:† Penalty & Interest
Respondent.††††††††††††††††††††††††††††† )†††† Judge:††††††††††††††
Jane Phan, Administrative Law Judge
For Petitioner:†††††††† PETITIONER REP, Business Owner
For Respondent:††††† Jan Sanchez, Supervisor
††††††††††††††††††††††††††††† Laurie Payne, Tax Compliance Agent
†††††††††††††††††††††††††††††††††††††††††††††††††††††† STATEMENT OF THE CASE
This matter came before the Commission for an Initial Hearing on January 23, 2003.† Petitioner is appealing a penalty assessed for the late filing and payment of second quarter 2002 sales tax.† The amount at issue is $$$$$.
††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† APPLICABLE LAW
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause.† Utah Code Ann. '59-1-401(10).
Petitioner explained that she thought she had mailed the sales tax return and payment timely.† It was not until she received a tax due notice that she discovered the completed return with the check sitting on her desk waiting to be mailed.† The business was small and operated out of Petitionerís home.† During the quarter at issue Petitioner was under a lot of stress.† Her husband had been seriously ill, hospitalized in December 2002 and bedridden for several months thereafter, as well as unable to work.† She was trying to take care of him, their children, and operate the business to support the family financially.† Her husband was out of work until just recently, when he found employment in CITY.† She felt that even the $$$$$ was a financial hardship to pay at the present time as they were trying to catch up on their bills.†
It was Respondentís position that the penalty and interest should not be waived as Petitioner had three prior delinquencies in the past three years.†† Petitioner was late filing and paying the sales tax for two quarters in 1999 and the first quarter in 2002.† Respondent had already waived the penalties on all three of the prior periods.† Respondentís representatives point out that the hospitalization and time period when Petitionerís husband was bedridden was many months prior to when the sales tax return at issue was due.††
† ††††††††††††††††††††††††††††††††††††††††††††††††††††††† DECISION AND ORDER
The Commission is not unsympathetic to Petitionerís situation as she was certainly going through a difficult period of time.† However, Utah law requires timely filing and the assessment of penalties for late payment of taxes.† This is to encourage compliance with the filing requirements.† Under the facts at hand it is not reasonable to continue to waive penalties for Petitioner.†††
Based upon the foregoing, the Commission finds that sufficient cause† has not been shown to justify a waiver of the $$$$$ assessed due to Petitionerís late filing and late payment of her second quarter sales tax.† 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 ††28th† †day of ††January† , 2003.
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 ††28th† †day of ††January, 2003.
Pam Hendrickson††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† R. Bruce Johnson
Commission Chair†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Commissioner
Palmer DePaulis†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Marc B. Johnson