BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0338
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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. David J. Angerhofer, Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.
A prepayment of sales and use taxes for the second quarter of XXXXX was due by XXXXX pursuant to Utah Code Ann. § 59-15-5.1 (1953). Petitioner does not dispute that the prepayment for the second quarter of XXXXX was not made. The return was filed on XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.
Petitioner asserted that the penalty is unduly harsh. Petitioner stated that it operates and pays taxes in forty-four states, including cities and counties in some of these states, and that it is not required to prepay in most states. Petitioner stated that it has made provisions to correct the problem so that a failure to prepay taxes will not happen again.
Petitioner stated that, although a penalty may be assessed pursuant to Section 59-15-8 for negligence or intentional disregard of rules, there has been no negligence or intentional disregard in this case. Petitioner further stated that a penalty is for malcontents and not for conscientious taxpayers who err. Petitioner requests a waiver of penalty, or, in the alternative, a reduction of the penalty to $$$$$.
Petitioner was aware of the requirement to prepay the sales tax for the second quarter of each year. Petitioner was in business in Utah during the tax year XXXXX and knew of the requirement then. Petitioner was negligent in failing to prepay taxes for the second quarter of XXXXX. The Respondent properly assessed a penalty on this account.
Interest was also properly assessed on this account. Petitioner had the use of the money from XXXXX, the date that the Tax Commission would normally have received the money, until the date that the check finally cleared.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on sales and use tax account No. XXXXX for the second quarter of XXXXX be denied.
The Commission hereby affirms the assessment of penalty and interest on this account.
DATED this 15 day of October, 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis