BEFORE THE STATE TAX COMMISSION OF UTAH
Petitioner, : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-0286
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
STATEMENT OF CASE
An Informal Hearing was held on XXXXX. XXXXX, C.P.A., represented Petitioner. XXXXX also represented Petitioner. David J. Angerhofer, Hearing Officer, heard the matter for the Utah State Tax Commission. Respondent assessed a ten percent penalty for the late filing of Petitioner's XXXXX, sales tax liability. Utah Code Ann. 59-15-5.1 (Supp. 1986) (new 59-12-108) requires that if a taxpayer's sales or use tax liability was $$$$$ for the previous year or $$$$$ for the previous quarter or whose estimated tax liability is $$$$$ or more per month, the taxpayer shall prepay not less than ninety percent of the amount due by XXXXX of each year. Petitioner argues that it first received notice of the prepayment law in XXXXX. Petitioner was not required to prepay any sales tax liability for that year and Petitioner argues that he was told that he would be notified if he became liable. Petitioner never received a notification from the State Tax Commission that he would be liable for the prepayment and therefore assumed that he had no liability. Petitioner also argued that he normally does not have a sales tax liability because most of his sales are to other glass dealers who pay sales tax on their subsequent sales to purchasers. However, from time to time, Petitioner does sell glass from his inventory for commercial glass installation jobs. In XXXXX, Petitioner was under a contract to install glass on the XXXXX in XXXXX. The unusually large amounts of glass that Petitioner sold to the XXXXX project resulted in higher than normal sales tax liabilities and caused Petitioner to be subject to the prepayment requirement. Nevertheless, Petitioner believes that because he received no notification from the State Tax Commission that he was liable for the prepayment that he should not be made to pay a ten percent penalty because of unusual circumstances.
The Commission finds Petitioner was in fact told that he would be notified by the Tax Commission if he subsequently became liable for prepayment.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission to grant Petitioner's Request. Respondent is therefore ordered to adjust Petitioner's records to reflect the waived penalty. Respondent is also ordered to abate any interest assessed in connection with the penalty amount.
DATED this 1 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis
NOTICE: You have 30 days after the date on the Mailing Certificate to
request a Formal Hearing.