87-0079 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 87-0079

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. 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 represented the Petitioner. Petitioner admitted that the first quarter return had not been timely filed, but stated that a Tax Commission employee assured Petitioner on XXXXX, that there would be no problem if the taxes were paid in the next few days. On XXXXX, Petitioner received a warrant and demand for payment of taxes in the amount of $$$$$, including a $$$$$ penalty and $$$$$ in interest. On XXXXX, Petitioner received a bulletin from the State Tax Commission which stated: Effective XXXXX, sales and use taxes were affected by new legislation. This legislation established the charging of $50 or 10% penalty, whichever is greater, for returns filed or payments made after their respective due dates. Therefore, all returns and payments filed late after XXXXX, regardless of filing period, will fall under the new penalty law. Returns filed late with no tax due will also be affected by this law and will receive the $50.00 penalty charge. This bulletin was dated XXXXX. Petitioner asserted that it was not fair to assess a penalty before notification. Petitioner requests a waiver of the $50.00 late filing penalty.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of penalty on sales and use tax account No. XXXXX for XXXXX be granted. The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is waived.

DATED this 1 day of October, 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