BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0358
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.
Petitioner stated that he never received a form for prepayment of sales tax for the second quarter of XXXXX. Petitioner had requested a change of address when he filed for the first quarter of XXXXX, but no change was made by the Tax Commission. Petitioner stated that he understood that the XXXXX tax year prepayment was a one time requirement and that Petitioner had no knowledge of a requirement to prepay sales and use tax for the second quarter of XXXXX.
Respondent assessed a penalty of $$$$$ and interest of $$$$$ based on 90% of the estimated liability for XXXXX and XXXXX of XXXXX. Petitioner requests a waiver of the penalty.
Petitioner was negligent in failing to prepay the sales tax for the second quarter of XXXXX. This is the second year in which Utah has required a prepayment of the second quarter sales and use taxes pursuant to Utah Code Ann. § 59-15-5.1(1) (1953). Petitioner knew of the prepayment requirement in the tax year XXXXX. The statute has not changed for the tax year XXXXX.
Failure to receive form TC-71-P is not sufficient justification for failure to make the required prepayment. Section 59-15-5.1 specifies the amount that must be prepaid, i.e., the taxpayer shall "prepay not less than 90% of the amount of state and local tax liability for April and May of each year."
Petitioner had the burden of proof to establish that Respondent assessed penalty and interest in error. Petitioner failed to meet this burden of proof.
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 be denied.
The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 12 day of November 1986.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis