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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