BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal No. 86 0358
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.
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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner