SALES
86-0517
Signed 12/20/86
BEFORE
THE STATE TAX COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) INFORMAL DECISION
:
)
COLLECTION DIVISION OF THE : Appeal No. 86 0517
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, the first
quarter of XXXXX, and the second 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.
The tax due for the
fourth quarter of XXXXX was $$$$$.
Respondent assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.
The tax for the first
quarter of XXXXX was $$$$$. Respondent
assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX.
The tax for the second
quarter of XXXXX was $$$$$. Respondent
assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX. Payment for these three quarters was not
made until XXXXX.
Petitioner stated that
the XXXXX was sold in XXXXX, and that his partner left the country and
Petitioner went to XXXXX. Petitioner
stated that although the Tax Commission had sent correspondence to the
Petitioner concerning his status in regards to the XXXXX, Petitioner did not
receive notification of the delinquencies until the spring of XXXXX. Petitioner requested a waiver of penalty and
interest.
FINDINGS
Petitioner had the
burden of proof to establish that Respondent assessed penalty and interest in
error. Petitioner did not meet this
burden of proof. Petitioner was
negligent in assuming that all obligations were satisfied at the time the XXXXX
was sold.
Respondent properly
assessed a 10% penalty on each quarter pursuant to Utah Code Ann. ?
59‑15‑8 (1953). Interest
was also properly assessed on the account since the Tax Commission was denied
the use of the money because of the delinquency.
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, the first quarter of XXXXX, and the second 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 20 day of
November, 1986.
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
NOTICE: You have 30 days after the date on the Mailing Certificate to
request a Formal Hearing.
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