SALES
86-0516
Signed 12/21/87
BEFORE
THE STATE TAX COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION DIVISION OF THE : Appeal No. 86 0516
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 and the third
quarter of XXXXX. An Informal Hearing
was held on November 5, 1986, in the offices of the Utah State Tax
Commission. David J. Angerhofer,
Hearing Officer, heard the matter for the Commission. XXXXX represented the Petitioner.
Tax for the second
quarter of XXXXX was $$$$$. Respondent
assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.
Tax for the third
quarter of XXXXX was $$$$$. Respondent
assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.
Petitioner asserted that
the deficiency notices for the second quarter of XXXXX were sent to XXXXX,
XXXXX, Utah, a wrong address. An error
on this return resulted in a tax deficiency of $$$$$. As soon as Petitioner became aware of the tax liens, Petitioner
paid the amount. Petitioner requests a
waiver of penalty and interest for the second quarter of XXXXX.
Petitioner asserted that
a deficiency for the third quarter of XXXXX is frivolous. The return was filed two or three days late
and the assessment of penalty and interest is excessive. Petitioner was out of town during the
deadline and had noted that on the return when it was later filed.
FINDINGS
Penalty and interest
were properly assessed for the second quarter of XXXXX. Petitioner's explanation of the wrong
address on the deficiency notice does not justify the $$$$$ error. A 10% penalty for negligence is properly
assessed pursuant to Utah Code Ann. ?
59‑15‑8 (1953). Interest
was properly charged because the Tax Commission was denied the use of the money
for this period.
Penalty was properly
assessed for the third quarter of XXXXX. Petitioner was negligent in failing to
make arrangements for the payment of tax while Petitioner was out of town. The interest was also properly assessed
since the Tax Commission was denied the use of the money for this period.
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 second
quarter of XXXXX and the third quarter of XXXXX be denied.
The assessment of
penalty and interest by the Collection Division of the Utah State Tax
Commission is hereby affirmed.
DATED this 21 day of
January, 1987.
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
NOTICE: You have 30 days after the date on the Mailing Certificate to
request a Formal Hearing.
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