86-0072 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, ) FINDINGS OF FACT,

: CONCLUSION OF LAW

v. ) AND FINAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0072

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

:

Respondent. )

_____________________________________

This matter came before the Utah State Tax Commission for a Formal Hearing on February 23, XXXXX. XXXXX, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Based upon the evidence and arguments presented at the formal hearing, the Tax Commission makes its

FINDINGS OF FACTS

1. XXXXX bought XXXXX assets in XXXXX.

2. Subsequent to the purchase of the property by XXXXX it was discovered that the first quarter of XXXXX, sales tax return was filed on June 8, XXXXX, approximately forty days late. Therefore, a penalty of $$$$$ was assessed on June 4, XXXXX.

3. At the same time that the sales tax late filing and payment was discovered, the transient room tax late filing and payment was also discovered and a penalty was assessed. Sometime thereafter the transient room tax penalty was waived.

4. On November 18, XXXXX, a Notice and Demand was sent by the Tax Commission to XXXXX for the payment of delinquent penalty and interest. Sometime in the first part of XXXXX, a letter requesting a waiver of the penalty and interest was submitted to the Tax Commission.

5. No evidence was presented which would indicate why the quarterly filing was made late.

6. The Division recommendation to the Tax Commission was to waive the penalty.

CONCLUSIONS OF LAW

1. If a deficiency is due to negligence or intentional disregard of authorized rules and regulations, but without intent to defraud, there is a 10% penalty assessed to the amount of the deficiency. Utah Code Ann. § 59-15-8.

2. The burden of proof is up to the Petitioner to establish its claim. The Petitioner in this matter claims that the delay of time and the recommendation of the division equal reasonable cause.

3. The Commission has power in its discretion to waive, reduce or compromise any of the civil penalties or interest provided in the sales tax chapter. Utah Code Ann. § 59-15-8.

4. The Petitioner has shown no evidence of lack of negligence as it is required to bear its burden of proof. Based upon the foregoing the Commission finds no facts or evidence that would allow it to exercise its power of discretion to waive, reduce or compromise the civil penalties for late filing and payment of this quarterly sales tax.

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request be denied.

DATED this 20 day of March, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner