BEFORE THE STATE TAX COMMISSION OF UTAH
Petitioner, : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-0135
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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
Joe B. Pacheco G. Blaine Davis