Penalty & Interest

Signed 5/1/03


                                      BEFORE THE UTAH STATE TAX COMMISSION



PETITIONER,                                                  )    

)     ORDER

Petitioner,                                 )    

)     Appeal No. 03-0269           

v.                                                                     )    

)     Account No.     #####


UTAH STATE TAX COMMISSION,               )     Tax Type:  Penalty & Interest


Respondent.                              )     Judge:               Phan                      




Jane Phan, Administrative Law Judge



For Petitioner:         PETITIONER REP

For Respondent:      Laurie Payne, Tax Compliance Agent

                              Janet Sanchez, Supervisor, OIC/Waiver Unit

                                          Carrie Luna, Tax Compliance Agent



                                                       STATEMENT OF THE CASE

This matter came before the Commission for an Initial Hearing on April 21, 2003.  

                                                              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 is appealing the assessment of penalties and denial of the vendor discount for the period of October 2002.  The Penalty was $$$$$, and the vendor discount approximately $$$$$.  Petitioner was required to file its sales tax payments electronically.  Petitioner did call in the electronic transfer on the due date, December 2, 2002, but Petitioner missed the 3:00 pm deadline, so the payment was made on the following day.   Petitioner’s representative indicated that Petitioner had called it in only 20 minutes late and the delay was inadvertent.  It was also her understanding that Petitioner had a history of timely filing and paying so that this was an “isolated incident.”

Respondent’s representatives indicate that this was not an isolated incident as there had been six delinquencies in the past three years that involved late electronic payments, electronic payments returned for insufficient funds, or late filed returns.  

                                                          DECISION AND ORDER

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the penalties or to reinstate the vendor discount pertaining to the late payment of sales tax for the period of October 2002.  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   1st   day of   May  , 2003.



Jane Phan

Administrative Law Judge





The Commission has reviewed this case and the undersigned concur in this decision.

DATED this   1st   day of   May  , 2003.



Pam Hendrickson                                                                      R. Bruce Johnson

Commission Chair                                                                     Commissioner





Palmer DePaulis                                                                       Marc B. Johnson

Commissioner                                                                           Commissioner