86-0314 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

:

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0314

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 second quarter of XXXXX, and for the second quarter of XXXXX for failure to prepay the sales taxes.

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. XXXXX represented the Respondent.

Petitioner stated that he received no notification of the prepayment requirement for the second quarter of XXXXX, and that he thought the prepayment requirement for the second quarter of XXXXX was a one time requirement to compensate for the flooding. Petitioner said that it wasn't until XXXXX, that he learned that the prepayment requirement was an annual requirement for the second quarter of each year.

The tax due for the second quarter of XXXXX was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX for failure to prepay sales taxes for the second quarter of XXXXX.

The tax due for the second quarter of XXXXX was $$$$$. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX for failure to prepay sales taxes for the second quarter of XXXXX.

At the hearing, Petitioner requested that he be allowed to incorporate the XXXXX taxes into this appeal in addition to the XXXXX and XXXXX taxes which are presently under appeal.

FINDINGS

The prepayment of sales and use taxes, pursuant to Utah Code Ann. 59-15-5.1 (1953) was first required for the tax year XXXXX. The prepayment is due only for the second quarter of each tax year. In the other three quarters of the tax year, the sales and use taxes are due by the last day of the month next succeeding each calendar quarterly period.

The Petitioner did not receive a prepayment form for the tax year XXXXX or the tax year XXXXX. However, Section 59-5-5.1 contains sufficient information and direction that Petitioner could have filed the prepayments even without the forms.

Interest was properly charged on Petitioner's account for both tax years. Petitioner had the use of the money from XXXXX of each year, the date that the Tax Commission normally would have received the money, until the date that Petitioner finally made the payment.

This is not the proper time to consider the XXXXX tax year. Petitioner should first attempt to reach an agreement with the Collection Division of the Utah State Tax Commission. If this is not possible, then Petitioner may petition for an Informal Hearing.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty and interest on sales and use tax account No. XXXXX for XXXXX be waived. For tax year XXXXX, the penalty and interest are affirmed.

The Collection Division of the Utah State Tax Commission is ordered to adjust its records in accordance with this decision.

DATED this 5 day of December, 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