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