BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 86 0426
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 fourth 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.
Sales and Use Tax for the fourth quarter of XXXXX amounted to $$$$$. Tax Commission records show that this was paid on XXXXX. Respondent assessed a 10% penalty of $$$$$ and interest of $$$$$. The penalty was subsequently reduced to $$$$$ on XXXXX, but interest remained at $$$$$ for a total amount due of $$$$$.
Petitioner requests a waiver of the remaining penalties and interest, stating that the return was mailed on XXXXX. The secretary forgot to affix the proper postage and it was returned. Petitioner realized the error, immediately put on the proper postage and sent it to the Tax Commission. Petitioner noted that XXXXX has a good filing history.
Petitioner had the burden of proof to establish that the penalty and interest were assessed in error. Petitioner failed to meet this burden of proof.
Utah Code Ann. § 59-15-8 (1953) authorizes a full 10% penalty "if any part of the deficiency is due to negligence." The Tax Commission has already reduced the penalty from $$$$$ (10%) to $$$$$ to account for the fact that the late filing is due to a simple mistake. The circumstances of this appeal do not justify the waiver of the entire penalty.
Interest was properly assessed on this account. The Tax Commission was denied the use of the money while the return was delinquent.
DECISION AND ORDER
It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on sales and use tax account No. XXXXX for the fourth quarter of XXXXX be denied. The penalty shall remain at $$$$$.
The assessment of interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 20 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