86-0146 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

:

Petitioner, ) FINDINGS OF FACTS

: CONCLUSIONS OF LAW

v. ) AND FINAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0146

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Formal Hearing on XXXXX. James E. Harward, Hearing Officer, and XXXXX, Appeals Section Supervisor, heard the matter for the Utah State Tax Commission. The Petitioner was represented by XXXXX.

Based upon the proceedings and the foregoing, the Commission makes its:

FINDING OF FACTS

1. The Auditing Division of the Utah State Tax Commission conducted an audit for the tax years XXXXX through XXXXX.

2. As a result of the audit, a deficiency in excess of $$$$$ was determined.

3. The Petitioner paid the deficient tax even though he had not collected the sales tax from the responsible parties.

4. Said payment by the Petitioner was within the time limits set out in the Notice and Demand for Payment.

5. No penalty was assessed.

6. Interest was assessed at the statutory rate.

7. A large portion of the deficiency is as a result of sales made to XXXXX and XXXXX.

8. XXXXX and XXXXX claim an exemption from the payment of sales tax due to the relationship with the United States Government. As evidence of that relationship, i.e. exemption from sales tax, XXXXX and XXXXX submitted to the Petitioner a letter dated XXXXX, from XXXXX, Managing Auditor from the Utah State Tax Commission stating that, in his opinion, purchases made by XXXXX would be free from sales tax.

9. Because of the letter from the managing auditor of the Utah State Tax Commission and the representation of XXXXX's and XXXXX, the Petitioner did not collect sales tax.

CONCLUSIONS OF LAW

1. The Petitioner is required to collect sales tax for the subject audit period and failed to do so.

2. The Petitioner upon notification of the deficiency paid it within the time limits prescribed.

3. Petitioner relied on representation of XXXXX, XXXXX, and a letter from a representative of the Tax Commission in not collecting sales tax.

FINAL DECISION

Based upon the foregoing, it is the decision of the Utah State Tax Commission that the interest on Petitioner's account for the audit period XXXXX through XXXXX be waived.

DATED this 4 day of February, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner