86-1718 - Sales & Use

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 86 1718

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 XXXXX and XXXXX of XXXXX. A telephone conference 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 represented the Petitioner.

This matter concerns the failure of Petitioner to prepay the sales and use tax for the second quarter of XXXXX. Petitioner stated that it never received the necessary information needed to make the prepayment and that it was unaware of the requirement to make a prepayment until the quarterly return for the second quarter of XXXXX had been received. After reviewing the requirements for prepayment, Petitioner discovered that it met the requirements and was required to make prepayments for the second quarter of XXXXX and the second quarter of XXXXX. Respondent did not notify Petitioner in XXXXX or XXXXX. Petitioner requests a waiver of the penalty and interest in this matter.

FINDINGS

It is the Responsibility of every taxpayer to be aware of Utah State tax laws. Utah Code Ann. 59-15-5.1 (1953) clearly states that:

(1) Any person whose tax liability under Title 59, Chapters 15 and 16, and Title 11, Chapter 9 was (a) $96,000 for the previous year, (b) $24,000 for the previous quarter, or (c) whose estimated tax liability is $8,000 or more per month, as determined by the State Tax Commission, shall prepay not less than 90% of the amount of state and local tax liability for April and May of each year.

(2)...The prepayments shall be made to the State Tax Commission on or before the 15th of June each year, beginning June 15, 1984. It was not necessary for Respondent to notify Petitioner of the requirement to prepay income tax for April and May of 1986. The requirement is clearly set forth in the statute. Petitioner has effectively had three years in which to comply with this statute since a prepayment was not made for 1984 or 1985 even though Petitioner met the requirements. (The 1986 amendment to 59-15-5.1, quoted above, made minor changes in the language of the original 1984 statute, but the basic requirements have remained the same since 1984.)

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

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 XXXXX and XXXXX 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 11 day of March, 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