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