BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner )
:
V. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0227
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a 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 periods January to
December XXXXX, and January to December XXXXX.
An Informal Hearing was held on XXXXX, in the offices of the Utah State
Tax Commission. David J. Angerhofer,
Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the
Petitioner.
Petitioner
stated that the business was started in XXXXX, and that Petitioner lacked
knowledge concerning the intricacies of the tax laws. Petitioner got into a
financial bind and let the taxes go.
Petitioner stated that the penalty and interest were paid but were
incorrectly assessed a second time three years after the original penalty and
interest were paid. Petitioner also
questioned how a Notice of Warrant and Demand for Payment of Taxes dated XXXXX,
and a letter from Account Verification dated XXXXX, (three weeks later) could
differ by $$$$$$ in the total amounts due.
FINDINGS
Petitioner
was assessed a penalty and interest twice, but the first penalty and interest,
assessed on May 15, XXXXX, was based on an estimated return. When the true returns were later filed on
February 21, XXXXX, penalty and interest were assessed on this amount and
credit was given for the amount paid for tax, penalty and interest based on the
estimated return for XXXXX and XXXXX.
Petitioner
was given credit as follows: On June 15, XXXXX, Petitioner paid $$$$$ (the
total tax, penalty and interest for XXXXX and XXXXX, based on an estimated
return). On July 10, XXXXX, Petitioner
paid $$$$$ to be applied to the actual tax liability. On February 15, XXXXX, Petitioner paid $$$$$ to be applied to the
sales tax only for XXXXX, XXXXX, and XXXXX.
The XXXXX tax was $$$$$. This
left $$$$$ to be applied to the XXXXX and XXXXX tax years. Thus, the total credits for the tax years
XXXXX and XXXXX amount to $$$$$.
The
total liabilities for the tax years XXXXX and XXXXX are as follows: For XXXXX,
Petitioner owes a tax of $$$$$, a penalty of $$$$$, and interest of $$$$$, for
a total of $$$$$. For the tax year
XXXXX, Petitioner owed a tax of $$$$$, a penalty of $$$$$, and interest of
$$$$$ for a total of $$$$$. The total
liabilities for XXXXX and XXXXX amount to $$$$$.
The
total liability of $$$$$ less the total credit of $$$$$ leaves a balance due of
$$$$$, the amount stated in the July 1, XXXXX, letter from Account
Verification. All penalty and interest
have been properly assessed in this case and are accurately stated in the July
1, XXXXX, letter.
There
is a discrepancy in the warrants of June 5, XXXXX, and the letter of July 1,
XXXXX, because the warrants are in error.
The warrants of June 5, XXXXX, only include the assessed interest as of
February 21, XXXXX. The letter of July
1, XXXXX, properly includes both the assessed interest and the accrued interest
as of July 16, XXXXX. Interest shall
continue to accrue on this account until it is paid in full because of a Tax
Commission policy that all payments are applied first to penalty then to
interest and then to tax.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty and interest on sales and use tax account No.
XXXXX for the tax years XXXXX and XXXXX be denied.
The
assessment of penalty and interest by the Collection Division of the Utah State
Tax Commission is hereby affirmed.
DATED
this 15 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