87-1714 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1714

UTAH STATE TAX COMMISSION, : 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 a late filing penalty on sales and use tax account No. XXXXX for XXXXX and XXXXX. An informal hearing was held on XXXXX, in the offices of the Utah State Tax Commission. Jerry E. Larrabee, Tax Appeals Supervisor, represented the Tax Commission. XXXXX represented the Petitioner.

Petitioner stated that she notified the Tax Commission on XXXXX, advising the Tax Commission that XXXXX was no longer an active partner in XXXXX and gave the Tax Commission the address for XXXXX. Petitioner stated that XXXXX thereafter received a phone call from the Tax Commission verifying the change of address. XXXXX was not aware of what forms needed to be filed or how often they needed to be filed and was waiting for further correspondence from the Tax Commission. The first notification that XXXXX received was a notice of nonpayment of taxes. Petitioner requests a waiver of penalty for both filing periods because no notification was received from the Tax Commission.

FINDINGS

The Tax Commission finds that XXXXX had an affirmative duty to learn of the tax law of the State of Utah and to timely file the returns for the periods in question. If Petitioner did not understand proper procedure, then Petitioner should have contacted the Tax Commission, an accountant or a tax attorney. Petitioner was negligent in failing to do so.

Petitioner had the burden of proof to establish that Respondent assessed penalty and interest in error. Petitioner failed to meet this burden of proof.

DECISION AND ORDER

Based upon the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of the penalties on sales and use tax account No. XXXXX for XXXXX be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 15 day of 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