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