BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0354
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 Account No. 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.
Petitioner stated that the employee in charge of accounting and taxes left his employ in XXXXX and that this person was not replaced until XXXXX due to low sales. During this absence all tax related materials were put into a file for Petitioner's accountant, which accountant only handled the year end closing for the business. The new employee who was later hired continued to put all tax related materials (unopened) into the file for the accountant. When the accountant asked in XXXXX, for information for the year end closing, the accountant found the returns and notices and immediately took action to rectify the problem.
Petitioner stated that the IRS reduced the penalty on Petitioner's federal taxes by 80 to 90 percent and introduced a letter from the IRS to this effect. Petitioner agrees to the assessment of interest but requests a waiver of the penalty based on a good filing history prior to and subsequent to the periods in question.
Petitioner was responsible for the quarterly filings of Sales and Use taxes pursuant to Utah Code Ann. § 59-15-5 (1953). Petitioner negligently put all tax related items in a file (unopened) for almost 8 months rather than insure that the taxes would be timely filed. Since the employee in charge of accounting and taxes was not replaced until XXXXX, Petitioner should have sought outside assistance with his taxes.
DECISION AND ORDER
It is the decision and order of the Utah State Tax Commission that penalty and interest on sales and use account No. XXXXX was properly assessed for the first, second, and third quarter of XXXXX.
The request for waiver of penalty on account No. XXXXX is hereby denied.
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