86-0163 - Sales and Use

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0163

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

:

Respondent. )

_____________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission from the decision of the Collection Division of the Utah State Tax Commission (Respondent) to assess penalty and interest on Sales and Use Tax Account No. XXXXX for the period for XXXXX. An Informal Hearing was held XXXXX, in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. XXXXX and XXXXX represented the Petitioner.

Petitioner received a notice from the Tax Commission stating that Petitioner was required to make prepayment of sales and use taxes. The notice was dated XXXXX, and stated that a prepayment return was enclosed. No form was included with the letter. Petitioner then telephoned the Tax Commission several times in order to obtain a form but no form was forthcoming even though Petitioner was advised that the forms would be sent. On XXXXX, Petitioner wrote a letter to the Tax Commission but to no avail. Petitioner remitted the total tax due for the second quarter of XXXXX on or before XXXXX.

Respondent estimated the liability for April and May of XXXXX, calculated the 90% prepayment of $$$$$, assessed a 10% penalty of $$$$$, and calculated interest of $$$$$. The interest was calculated from June 16, XXXXX to July 30, XXXXX (45 days). The total amount due is $$$$$.

FINDINGS

The letter of XXXXX, which the Tax Commission sent the Petitioner was adequate notice that Petitioner would be required to prepay sales and use taxes for the second quarter of XXXXX. The letter cited the applicable Utah statutes and stated that the accelerated second quarter prepayment was to be made by June 15th. The letter then stated that "the amount of the prepayment is equal to the total Sales, Use and Resort Community Tax liabilities for the period between April 1, and May 31."

Petitioner had sufficient information and sufficient time to calculate and remit an accelerated second quarter prepayment by June 15, XXXXX. Petitioner did not need the form to make the prepayment.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that the request for waiver of the penalty and interest on Account No. XXXXX for the second quarter of XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby sustained.

DATED this 7 day of October, 1986.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis *

Commissioner Commissioner