BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0334
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. An Informal Hearing was held on
XXXXX, in the offices of the Utah State Tax Commission. XXXXX, Tax Appeals Supervisor, heard the
matter for the Commission. XXXXX and
XXXXX represented the Petitioner.
The
tax due for the second quarter of XXXXX was $$$$$. Petitioner paid the tax on XXXXX.
Respondent
assessed a 10% penalty of $$$$$ and interest of $$$$$ as of XXXXX.
Petitioner
stated that taxes were not timely paid because an employee embezzled
approximately $$$$$ from the company.
This included the money that was set aside to pay the sales and use
tax. Petitioner stated that employee
has been prosecuted and subsequently found guilty of embezzlement. Petitioner
requests a waiver of penalty and interest.
FINDINGS
Respondent
properly assessed a 10% penalty pursuant to Utah Code Ann. § 59-15-8(1953). However, the Tax Commission exercises its discretion and waives
the penalty in this case because of the embezzlement.
Interest
was properly assessed on this account since the Tax Commission was denied the
use of the money for the period in which the return was late.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that penalty on
sales and use tax account No. XXXXX for the second quarter of XXXXX be waived.
Interest
has been properly assessed on this account.
The
Collection Division of the Utah State Tax Commission is hereby ordered to
adjust its records in accordance with this decision.
DATED
this 9 day of December, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner