87-0287 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 87-0287

STATE TAX COMMISSION OF UTAH, ) Account 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 sales and use tax account No. XXXXX for XXXXX. Petitioner waived its right to an oral hearing. Therefore, the Tax Commission decides this matter based on the materials in the file. Petitioner stated that it is a very small business which is open to the public the last three quarters of each year and that total sales for the tax year XXXXX amounted to $$$$$. Petitioner stated that it has asked for an annual sales tax reporting basis instead of a quarterly basis since it does a small volume of business. Tax for XXXXX amounted to $$$$$. This tax was distributed equally between XXXXX. Petitioner paid the taxes on XXXXX, with a check in the amount of $$$$$. Respondent assessed a late filing penalty of $50.00 for each of the three quarters in question, and assessed associated interest for a balance due of $$$$$ as of XXXXX. Petitioner requests a waiver of the penalty and interest.

FINDINGS

Respondent properly assessed penalty for each of three quarters in question since Petitioner was delinquent in the payment of the taxes due and owing. Respondent also properly assessed interest since the Tax Commission was denied the use of the money during the period of delinquency. The taxpayer has written to the Tax Commission on a least two occasions, requesting an annual basis for the reporting of sales taxes. In consideration of the small volume of sales generated by Petitioner's business and its on going attempt to be put on an annual reporting basis, the Tax Commission, in its discretion, hereby reduces the penalty from a separate $50.00 penalty for each of the quarters in question to a single $50.00 late filing penalty for the tax year XXXXX. Interest, however, shall remain as assessed.

DECISION AND ORDER

It is the Decision and Order of the Utah State Tax Commission that penalty on the sales and use tax account No. XXXXX be reduced to $50.00 for the tax year XXXXX. Interest shall remain as assessed. The Collection Division of the Utah State Tax Commission is ordered to adjust its records in accordance with this decision.

DATED this 22 day of June, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Commissioner Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner

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