85-0204 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX :

)

Petitioner, : INFORMAL DECISION

)

v. : Appeal No. 85-0204

) Acct. No. XXXXX

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION OF UTAH )

:

Respondent. )

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STATEMENT OF CASE

This matter came for before the Tax Commission, XXXXX for an Informal Hearing. Presiding for and in behalf of the Utah State Tax Commission was James E. Harward, Hearing Officer. Present for and in behalf of the Petitioner was XXXXX.

The Petitioner presented evidence that during the 4th quarter of XXXXX, the company computer had problems with its hard disc. The hard disc had chipped causing severe problems to the capabilities of the computer which necessitated the purchase of a new hard disc. After the purchase of the hard disc, it was found that the backup tapes were scrambled and could not be imputed into the hard disc. Therefore, the Petitioner was required to input all of the information for the 4th quarter of XXXXX manually. As a result, the delays resulted in an untimely filing of the return and payment of the sales tax due.

DECISION AND ORDER

Based upon the foregoing facts and the evidence presented at the hearing, it is the Decision of the Utah State Tax Commission that the penalties be affirmed. The basis for this Decision is that Petitioner could have filed for an extension or paid and estimated tax and filed and estimated return or taken other steps before the due date of the return. Because of this failure, the Commission feels that the negligence penalty was properly imposed.

DATED this 21 day of March, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

Mark K. Buchi Joe B. Pacheco

Chairman Commissioner

R. H. Hansen Roger O. Tew