87-0997 - Sales

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