BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-0912
STATE TAX
COMMISSION OF UTAH, ) Acct. 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 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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner