86-0176 - Sales and Use

BEFORE THE STATE TAX COMMISSION OF UTAH

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XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0176

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

:

Respondent. )

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for an Informal Hearing on XXXXX. James E. Harward, Hearing Officer, heard the matter for the Tax Commission. The Petitioner was represented by XXXXX and XXXXX.

Petitioner argued that the "failure on the part of XXXXX to pre-pay the sales taxes for the months in question was a result of the failure of the Utah State Tax Commission to send us proper notice." The Petitioner further argued that XXXXX has always been prompt in making sales tax payments and would have made the XXXXX second quarter prepayment had they been notified. The quarterly payment was, in fact, timely made.

The Petitioners have cooperated fully and have paid the penalty and are now requesting a refund of that penalty. Their filing record is good with no previous delinquencies or late payments.

FINDINGS

1. Utah Code Ann. § 59-15-5.1 (Supp. 1986) provides that taxpayers meeting certain requirements must pre-pay not less than 90% of the amount of state and local sales tax liability for April and May by June 15th of each year. The statute makes clear that the prepayment will be required every year and not just in XXXXX.

2. Petitioner had received notice of the prepayment requirement from the State Tax Commission, and knew of the statutory requirement to pay, did file and pre-pay the tax in XXXXX, but did not make the prepayment for XXXXX as required by law.

3. Notwithstanding that Petitioner allegedly did not receive the form, that is not a sufficient reason to fail to pay a tax that is known to be due.

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that the penalty be sustained.

DATED this 9 day of January, 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