87-0049 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :           INFORMAL DECISION

v.                                                                                 :

COLLECTION DIVISION OF THE                          :           Appeal No. 87-0049

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

            Respondent.                                                     :

_____________________________________

STATEMENT OF CASE

            This matter came before the Utah State Tax Commission on XXXXX.  James E. Harward, Hearing Officer, heard the matter for the Tax Commission.  XXXXX appeared representing the Petitioner.  Petitioner presented evidence that the penalty and interest is the result of an audit report dated XXXXX.  On XXXXX, Petitioners paid the tax and interest, and requested a waiver of approximately $$$$$ in penalty.

            The audit deficiency was based on the failure to account for and pay to the Tax Commission sales tax on leases.  The failure to remit the sales tax on leases was a result of a problem in the computer system which was installed in XXXXX.  The software company, XXXXX, in XXXXX, Utah, had failed to prepare or program into the computer the accounting and paying of the income tax on leases on a quarterly basis.  However, the computer did account for or see that the tax was charged and collected.  The Petitioner candidly admits, however, that they share part of the blame in that the detailed summary report would indicate the collection of sales tax which was not being paid to the Tax Commission.  However, the returns were being based on the summary report which did not have a breakdown of the collection and payment of taxes.  The Petitioner indicates that there are credits for overpayment of taxes on previous quarters.  If the Commission declines to waive the penalty, the Petitioner requests that those credits be applied to the penalty.

DECISION AND ORDER

            Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that the penalty associated with the amended audit dated XXXXX, be affirmed.

            DATED this 23 day of July, 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