BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-0943
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, in response to an order to show
cause why he did not appear at an Informal Hearing, stated that travel costs
from XXXXX were cost prohibitive in relation to the amount of the penalty and
interest. Petitioner then reiterated
his position. Therefore, the Tax
Commission decides this matter based on the materials in the file. Petitioner stated that XXXXX administers an
existing lease portfolio created by XXXXX.
XXXXX is an unincorporated organization operated by the XXXXX, the
insurer of the lease streams. XXXXX
performs the billing and collection functions which XXXXX had performed until
it abandoned its responsibilities.
XXXXX took over this function to mitigate potential damages to
noteholders and itself. XXXXX did not
have the necessary accounting procedures in place when XXXXX took over the
billing and collection functions.
Petitioner noted that proper accounting controls are now in place. Petitioner stated that the delinquency was
not intended nor due to negligence, and requests that the Utah State Tax
Commission join the group of other taxing authorities which have waived penalty
and interest.
FINDINGS
Petitioner
had the burden of proof to establish that Respondent assessed penalty and
interest in error. Petitioner failed to
meet his burden of proof. Respondent
properly assessed penalty and interest pursuant to Utah Code Ann. §59-15-8
(1953) (new Section 59-12-110). The
Commission finds that Petitioner was negligent in failing to timely file and
pay the taxes due. Therefore, penalty was properly assessed. The Commission further finds that interest
was properly assessed. The Tax
Commission was denied the use of the money during the period of delinquency.
DECISION AND ORDER
It
is the Decision and Order 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 5 day of October, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen