BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
v. :
:
COLLECTION DIVISION
OF THE : Appeal No. 87-0126
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 special fuel tax account No. XXXXX for the 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 stated that he paid the special fuel tax at the pump
for the fuel purchased. Petitioner was
then contacted by the Tax Commission and told not to pay the tax at the pump,
but to pay it directly to the Tax Commission.
Petitioner obtained a refund from the fuel distributors who then took a
credit on their reports. Once the
Petitioner received the refund checks, he immediately paid the amount due to
the Tax Commission. Petitioner
presented evidence of check No. XXXXX, made out to the Tax Commission in the
amount of $$$$$. Respondent's records
indicate that a delinquency exists for the XXXXX. For the XXXXX, Respondent determined a tax due of $$$$$, a %%%%%
penalty of $$$$$, associated interest, and a credit of $$$$$ for a balance due
of $$$$$. For the XXXXX, Respondent
determined a tax due of $$$$$, a %%%%% penalty of $$$$$, associated interest,
and no credit for a balance due of $$$$$.
Petitioner requests a waiver of the penalty and interest.
FINDINGS
Check
No. XXXXX was received by Respondent and was applied to various quarters to
satisfy the outstanding tax, penalty and interest $$$$$ was applied to the
XXXXX, $$$$$ was applied to the XXXXX, $$$$$ was applied to the XXXXX, $$$$$
was applied to the XXXXX, and $$$$$ was applied to the XXXXX. A %%%%% penalty was properly assessed on
special fuel tax account No. XXXXX for the quarters in question. Since XXXXX, special fuel users have been
required to buy special fuel on a non-tax collected basis and pay the special
fuel tax on a report basis. Petitioner
did not comply with this requirement. However, the Tax Commission, in its
discretion, hereby waives the penalty because of Petitioner's prompt efforts in
collecting the money from the suppliers and complying with the law. The Utah State Tax Commission imposes
interest on delinquent taxes because it has been denied the use of the money.
In the present matter the Tax Commission was not denied the use of the money
since the fuel distributors had paid the tax for the periods in question. The Petitioner remitted the tax to the Tax
Commission as soon as he received the refund from the fuel distributors. Therefore, assessment of interest is not
appropriate.
DECISION AND ORDER
The
Tax Commission hereby waives the penalty and interest assessed on special fuel
tax account No. XXXXX for the period from the XXXXX through the XXXXX. The Collection Division is directed to
adjust its records in accordance with this decision.
DATED
this 5 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