87-1031 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1031

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. A telephone conference 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.

Petitioner stated that he had operated two stores, one in XXXXX, Utah, and one in XXXXX, Utah, but had only one sales tax number for both stores. For the tax year XXXXX, Petitioner added the sales of both stores together and determined that a prepayment was due. Petitioner timely prepaid for XXXXX. Petitioner should, in fact, have filed separately, using two sales tax numbers.

Petitioner sold the XXXXX store in XXXXX, called the Tax Commission to find out what to do regarding the tax situation, and was told not to prepay taxes for the XXXXX. Petitioner was prepared to prepay the tax but did not do so on the advice of the Tax Commission. Petitioner requests a waiver of the penalty and interest, stating that it was his intent to fully comply with the law at all times.

FINDINGS

The XXXXX store, standing alone, met the prepayment requirement for XXXXX. The XXXXX store, standing alone, did not meet the prepayment requirements for XXXXX. Sales for the XXXXX for the XXXXX store were less than $$$$$, and the sales for the XXXXX store for XXXXX were less than $$$$$.

Petitioner sold the XXXXX store in XXXXX to XXXXX of XXXXX. XXXXX, timely prepaid the XXXXX sales and use tax for the XXXXX store. Since Petitioner sold the XXXXX store in XXXXX, and since the new owner of the XXXXX store made a prepayment for the XXXXX, the Tax Commission finds that a prepayment was not required for the XXXXX for the XXXXX store.

DECISION AND ORDER

Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that a prepayment was not required for sales and use tax account No. XXXXX for XXXXX. The Tax Commission hereby grants Petitioner's request for waiver of penalty and interest.

The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 13 January, 1988.

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