BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
v. :
COLLECTION
DIVISION OF THE : Appeal No. 87-0135
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held by telephone conference call on XXXXX. James E. Harward, Hearing Officer, heard the
matter for the Utah State Tax Commission.
XXXXX represented Petitioner.
Petitioner is requesting a waiver of the penalty and interest assessed against
the late filing of its XXXXX, prepayment.
Petitioner argues that its late filing and underpayment (if any) was due
to a transfer of the return preparation function from XXXXX, to XXXXX,
Pennsylvania. Because the late filing
was due to an honest mistake with no intent to defraud the Tax Commission,
penalty and interest should be waived.
Petitioner also argues that since XXXXX had no Utah sales and use tax
liability on XXXXX, the penalty and interest should be waived. Respondent is currently preparing an audit
and since the final liability for the tax period in question has not been
determined, Petitioner requests that any final determination of penalty be held
in abeyance until the final tax liability is determined.
DECISION AND ORDER
Based
upon the foregoing, it is the Decision and Order of the Utah State Tax
Commission to deny Petitioner's request for waiver of penalty and
interest. Penalties are assessed for
failure to file returns on time whether or not any tax is due. Furthermore, even though a future amended
return or claim for refund may reduce the tax liability, penalties for late
filing and for deficiencies are assessed at the time the return is due if the
return is not filed when due or if it is filed when due but there is a deficiency
in payment of tax.
DATED
this 17 day of November, 1987.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner