BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, :
Petitioner, :
: INFORMAL
DECISION
v. :
:
AUDITING
DIVISION OF THE : Appeal No. 85 1532
State Tax
Commission of Utah ) Acct. No. XXXXX
Respondent :
_____________________________________
STATEMENT OF CASE
This
is a request for waiver of penalty and interest from XXXXX (Petitioner). The Auditing Division of the State Tax Commission
of Utah (Respondent) prepared an amended report indicating a tax liability of
$$$$$, interest of $$$$$, and penalty of $$$$$. Petitioner is in agreement with the tax liability but appeals the
penalty and interest because there was no intent to withhold the tax.
An
Informal Hearing was held on this matter on XXXXX, of the Utah State Tax
Commission. James E. Harward, Hearing
Officer, heard the matter for the Commission.
XXXXX and XXXXX represented the Petitioner. No one appeared representing the Respondent. Based on the evidence of the written
documentation the Commission makes the following determinations:
1. The audit period in question is from XXXXX,
through XXXXX.
2. The Petitioner acquired a computer system in
XXXXX. Computer and programming errors
contributed to a significant amount of the tax errors during the time period.
3. Petitioner wrote a check in the amount of
$$$$$ on XXXXX. Approximately $$$$$ were paid out of pocket and $$$$$ were
collected after the audit. Petitioner
thus asserts that he did not have use of the money during the period in
question and should not be assessed interest on the same.
4. Although Petitioner did not intentionally
withhold the tax due and owing to the State of Utah, Petitioner was negligent
in not assuring that the computer system was operational. Negligence is sufficient to incur a penalty
of 10% of the total amount of the deficiency.
Utah Code Ann. 59-15-8 (1953).
Interest of $$$$$ was properly assessed. It irrelevant whether or not Petitioner had the use of the money
during the period in question. The fact
is the State was denied use of the money during this period.
DECISION AND ORDER
Based
on the foregoing facts and evidence presented at the Informal Hearing, it is
the Decision of the Utah State Tax Commission that the penalty imposed by the
Auditing Division be affirmed and that the interest also be affirmed in full.
DATED
this 11 day of July, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
Mark K.
Buchi R.
H. Hansen
Chairman Commissioner
Roger O. Tew Joe
B. Pacheco
Commissioner Commissioner