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