BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0338
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.
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 $$$$$ and interest of $$$$$ as of XXXXX.
Petitioner
asserted that the penalty is unduly harsh.
Petitioner stated that it operates and pays taxes in forty-four states,
including cities and counties in some of these states, and that it is not
required to prepay in most states.
Petitioner stated that it has made provisions to correct the problem so
that a failure to prepay taxes will not happen again.
Petitioner
stated that, although a penalty may be assessed pursuant to Section 59-15-8 for
negligence or intentional disregard of rules, there has been no negligence or
intentional disregard in this case.
Petitioner further stated that a penalty is for malcontents and not for
conscientious taxpayers who err.
Petitioner requests a waiver of penalty, or, in the alternative, a
reduction of the penalty to $$$$$.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner