86-0492 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX, )

:

Petitioner, )

: SECOND

v. ) INFORMAL DECISION

:

)

COLLECTION DIVISION OF THE : Appeal No. 86 0492

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 first and third quarters of XXXXX. An Informal Decision was rendered on XXXXX, based on the documents in the file when XXXXX waived his right to a hearing. The original Informal Decision denied Petitioner's request for waiver of penalty and interest.

A Formal Hearing was scheduled for XXXXX, in the offices of the Utah State Tax Commission but was converted to an Informal Hearing when Petitioner asserted that he had not had a hearing. XXXXX, Tax Appeals Supervisor, represented the Commission. XXXXX represented the Petitioner.

Petitioner acknowledged that the tax returns were filed late for both the first and third quarters of XXXXX, but stated that this was because the State of Utah was auditing the company. Petitioner was unable to file the returns on time because its accountant was involved in the audit.

FINDINGS

Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of $$$$$ for the first quarter of XXXXX. Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of $$$$$ for the third quarter of XXXXX. The tax has since been paid. The total amount due as of the date of the hearing is $$$$$.

Petitioner had the burden of proof to establish that penalty and interest were assessed 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 and interest on sales and use tax account No. XXXXX for the first and third quarters of XXXXX be denied.

DATED this 1 day of September, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner