86-0001 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, )

v. : INFORMAL DECISION

)

COLLECTION DIVISION, STATE :

TAX COMMISSION OF UTAH, ) Appeal No. 86 0001

Respondent. :

_____________________________________

STATEMENT OF CASE

An Informal Hearing before the Utah State Tax Commission was held on XXXXX at 9:00 a.m. XXXXX, Tax Appeals Supervisor, and XXXXX, Hearing Officer, presided for and in behalf of the Utah State Tax Commission. XXXXX (Petitioner) was represented by XXXXX. The Collection Division (Respondent) did not have a representative at the hearing.

The Collection Division assessed a penalty against the Petitioner for failure to pay a full sales tax. The penalty was reduced by the Collection Division upon receiving a request for waiver from the Petitioner. The Petitioner requested the waiver because of an error on the sales and use tax return form. Line eight of the form directed the taxpayer to use a 5.5% tax rate instead of a 5.75% rate. The Petitioner followed the instructions as printed on the form and paid a sales tax based on the 5.5% rate. After receiving notice of the deficiency, the Petitioner promptly paid the balance of the tax.

The Petitioner contends that the penalty and interest should be waived because the mistake on the return form caused the tax deficiency, and they (Petitioner) had no control over the printing of the form. To penalize the Petitioner for someone elses mistake would be unreasonable and unjust.

DECISION AND ORDER

Based upon the written documents and the evidence presented at the hearing, it is the Decision of the Commission to waive the penalty and interest.

DATED this 2 day of September, 1986.