BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-0997
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. An Informal Hearing was held on XXXXX, in
the offices of the Utah State Tax Commission.
David J. Angerhofer, Hearing Officer, heard the matter for the
Commission. XXXXX represented the
Petitioner. This matter concerns the
failure to prepay sales and use tax for the XXXXX. Petitioner stated that he
received a letter notifying him of the requirement to prepay for the second
quarter. Petitioner prepaid for the
this quarter but assumed that the prepayment requirement was a temporary
requirement. In XXXXX, Petitioner again
received a letter notifying him of the prepayment requirement. Petitioner prepaid the sales and use tax for
the XXXXX. In XXXXX, Petitioner never
received a letter and, therefore, assumed that there was no need to prepay the
sales and use tax for the XXXXX. Petitioner
noted that this is the first penalty which he has incurred in 35 years of
business and requests a waiver of the penalty.
He did not willfully avoid the payment of tax.
FINDINGS
Petitioner
did not require a letter from the Tax Commission to determine whether or not a
prepayment was necessary for the XXXXX.
The requirements are clearly set forth in Utah Code Ann. §59-15-5.1
(1953) (renumbered to §59-12-108).
Petitioner had sufficient notice of the prepayment requirement in order
to timely make the prepayment and was negligent in failing to do so.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty 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 20 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