BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, : INFORMAL DECISION
v. :
COLLECTION
DIVISION OF THE : Appeal No. 87-0286
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. :
_____________________________________
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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner
NOTICE: You have 30 days after the date on the Mailing Certificate to
request a Formal Hearing.
^^