86-0959 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

:

Petitioner, :

: FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 86 0959

STATE TAX COMMISSION OF UTAH,. ) Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to a Formal Hearing from an Informal Decision of the Utah State Tax Commission which affirmed the penalty and interest on sales and use tax account No. XXXXX for the first quarter of XXXXX. A Formal 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 and XXXXX represented the Petitioner.

FINDINGS OF FACT

During the period XXXXX to XXXXX, Petitioner changed its data processing system, including new computer hardware and software. Petitioner experienced extreme difficulty in switching and maintaining the proper records for accounting purposes. Petitioner had problems feeding correct information into the system and getting the accounts out. Petitioner then hired a CPA firm to assist in correcting the records.

During this period, Petitioner also experienced an employee misunderstanding concerning the payment of the tax. Petitioner provided evidence that the tax was, in fact, paid on XXXXX, approximately two weeks late. Petitioner voluntarily made the payment and did not wait for the Tax Commission to initiate procedures for collection.

Except for the tax period in question, Petitioner has an excellent filing record with the Utah State Tax Commission.

The tax due for the first quarter of XXXXX, amounted to $$$$$. Respondent assessed a 10% penalty of $$$$$ and interest of $$$$$.

CONCLUSIONS OF LAW

Petitioner had the burden of proof to establish that penalty and interest were assessed in error. Petitioner failed to meet this burden of proof.

Respondent properly assessed a 10% negligence penalty pursuant to Utah Code Ann. 59-15-8 (1953). Petitioner did not timely file the tax.

FINAL DECISION

It is the Decision and Order of the Utah State Tax Commission that penalty on sales and use tax account No. XXXXX for the first quarter of XXXXX be affirmed. The assessment of interest is affirmed because the Tax Commission was denied the use of the money during this period.

DATED this 5 day of August, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSTAINED

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner