BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
COLLECTION
DIVISION OF THE : Appeal No. 87-1018
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
An
Informal Hearing was held on XXXXX.
XXXXX, Hearing Officer, heard the matter for the Utah State Tax
Commission. XXXXX appeared representing
himself. XXXXX had an XXXXX
distributorship and apparently paid sales tax on an annual basis. Therefore, for the XXXXX period, the sales
tax return and payment were due by XXXXX.
XXXXX filed the sales tax return prior to the XXXXX deadline, but inadvertently
failed to include a check for the amount due of $$$$$. Respondent therefore assessed a $$$$$
penalty and interest. XXXXX requested a
waiver of the penalty and interest because he had made an honest mistake in not
including a check with his return. He
testified that he had no fraudulent intent, that he was aware of the $$$$$
penalty, and that he simply overlooked making out and sending a check. He indicated that he returned his sales tax
license with his return since he was no longer in business, and that this
"paper shuffle" may have been the reason he overlooked sending a
check. XXXXX also indicated that
interest should be abated during the appeals process and that he was told he
could request interest to be abated during that process. Therefore, Petitioner requested waiver of
the $$$$$ penalty and interest.
DECISION AND ORDER
Utah
Code Ann. §59-15-8 (Supp. 1986-provides that if any part of a deficiency in
sales tax remitted in due to negligence there shall be added to the amount of
tax due the greater of $$$$$ or %%%%% of the deficiency, and interest at the
rate of %%%%%. The only provision in
the Utah Code which would authorize interest to be abated during an appeals
process, is the provision allowing the taxpayer to pay the total amount of tax,
penalty, and interest that is due, and then sue for a refund. Petitioner in this case chose to file a
Petition for Redetermination rather than pay the total amount due and sue for
refund. Based on the foregoing, it is
the Decision and Order of the Utah State Tax Commission to deny Petitioner's
request for waiver of penalty and interest. Although the Commission agrees with
Petitioner that his overlooking the check was an honest mistake and that he had
absolutely no fraudulent intent, this mistake constitutes negligence and
therefore the penalty was properly assessed. Moreover, Petitioner is not
entitled to an abatement of accruing interest in the appeals process because he
chose to pay only the tax due and request a waiver of the penalty and interest (the equivalent of a Petition for
Redetermination), rather than pay the total amount due and sue for a refund.
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