BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 87-0912
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
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 the XXXXX. Petitioner waived its right to an oral hearing. Therefore, the Commission decides this matter based on the materials in the file. Petitioner stated that it has never been required to prepay its tax in the past and that it was unaware of this requirement. Petitioner noted that its always paid its sales tax timely but never received Form TC-71-B from the Utah State Tax Commission and assumed that the prepayment did not apply for the XXXXX.
Respondent estimated the liability for XXXXX, to be $$$$$ and estimated the liability for XXXXX, to be $$$$$ for a total of XXXXX. Ninety percent of this total (90% required prepayment) is $$$$$. Respondent assessed a 10% penalty of $$$$$ and interest from XXXXX to XXXXX (45 days) of $$$$$ for a total amount due of $$$$$. Respondent noted that Petitioner has prepaid the sales and use taxes for the XXXXX. Petitioner has paid the liability and requests a waiver of penalty and interest.
Petitioner has the burden of proof to establish that Respondent assessed penalty and interest in error. Petitioner failed to meet this burden of proof. Respondent properly assessed penalty and interest pursuant to Utah Code Ann. §59-15-5.1 (1953) (new Section59-12-108). The requirements for prepaying sales and use taxes are set forth in Section 59-15-5.1. Petitioner did not need a form from the State Tax Commission to determine that it was required to prepay sales and use taxes for the XXXXX. Petitioner knew of the requirement to prepay the taxes.
DECISION AND ORDER
It is the decision of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest on sales and use tax account No. XXXXX for the XXXXX be denied. The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.
DATED this 15 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