86-0107 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

COLLECTION DIVISION OF THE )

STATE TAX COMMISSION : Appeal No. 86 0107

OF UTAH, ) Account No. XXXXX

:

Respondent. )

_____________________________________

STATEMENT OF CASE

An Informal Hearing was held on July 17, 1986. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. Petitioners were represented by XXXXX. No one appeared representing the Collection Division of the Tax Commission.

The Petitioner is a steel fabricating company located in California. An audit was conducted for the period January 1, XXXXX through December 31, XXXXX. For that audit return, a deficiency was assessed for $$$$$ with a penalty of $$$$$ and interest. Part of the tax deficiency was due to a payment made to California which was, in fact, due to Utah. That payment was in excess of $$$$$.

In addition, Petitioner was late for the second quarter of XXXXX, with a tax due of $$$$$. The Collection Division assessed a $$$$$ penalty for the late filing.

The Petitioner has appealed the assessments of the penalty for the audit period and also for the late filing of the second quarter of XXXXX.

Petitioner argued that for the audit deficiency, the penalty should be waived because a substantial portion of the deficiency had been paid mistakenly to the state of California and the tax due was paid within the time limits prescribed in the statutory notice of deficiency. No evidence or arguments were made as to the late payment of the second quarter of XXXXX.

DECISION AND ORDER

Based on the facts, written documentation, and oral argument provided at the hearing, it is the decision of the Utah State Tax Commission that the penalty for the audit deficiency be waived but that the penalty for the late filing of the April-June XXXXX quarter be sustained.

DATED this 3 day of September, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco

Commissioner