BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
Petitioner, :
v. : INFORMAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 86 1823
STATE TAX
COMMISSION OF UTAH, ) Account No. XXXXX
: Audit
Period XXXXX
Respondent. : thru XXXXX
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from an amended audit report
prepared by the Auditing Division of the Utah State Tax Commission (Respondent)
on XXXXX. An Informal 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,
CPA, and XXXXX represented the Petitioner.
XXXXX and XXXXX represented the Respondent.
Petitioner
acknowledged that the tax portion of the amended audit report was correct but
appeals the 10% penalty and stated that there were extenuating
circumstances. Prior to starting the
filter rebuilding business, Petitioner was in the meat business. Petitioner was told that he did not need to
collect tax on meat which customers brought in to have cut. Petitioner saw similarities between this
business and the filter business.
Customers brought in their own filters to be rebuilt. Petitioner was further advised by the
auditor of the company that it was okay not to charge the tax. Petitioner was told by several clients that
other companies did charge tax but Petitioner assumed that this was because the
other companies sold new filters while Petitioner rebuilt filters. Petitioner started collecting the tax on its
own initiative.
Respondent
noted that Petitioner had a duty to learn of the law when he set up the filter
rebuilding business and stated that it is not the job of the Tax Commission to
seek out and teach taxpayers.
Respondent noted that Petitioner started filing returns in XXXXX, filed
and paid three quarters in XXXXX, but stopped paying the tax for the fourth
quarter of XXXXX, and the first quarter of XXXXX.
DECISION AND ORDER
Based
on the foregoing, it is the Decision and Order of the Utah State Tax Commission
to deny Petitioner's Petition for Redetermination.
The
amended audit report of the Auditing Division of the Utah State Tax Commission,
as prepared on XXXXX, is hereby affirmed.
DATED
this 11 day of December, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner