87-2424 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

COLLECTION DIVISION OF THE                          :           Appeal No. 87-2424

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 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 Tax Commission.  XXXXX represented the Petitioner.  The Petitioner provided a copy of a XXXXX letter from an agent of the Tax Commission to the Petitioner.  The letter said in part that Petitioner's request for waiver would be submitted "upon the receipt of the tax and interest portion of the amount due . . . ." Petitioner paid the tax and interest portion within 10 days, but the money was not applied solely to the tax and interest for the periods in question.  Instead, the money was applied to the tax, penalty and interest for the oldest periods first.  As a consequence, penalty and interest continued to accrue.  Petitioner requested that the penalty and interest be reduced to the amount due as of XXXXX, the date of the letter from the Tax Commission.

FINDINGS

            Receipt of the tax and interest portion of the deficiency is sufficient to initiate the appeals process, but does not signify that only the tax and interest will be paid with the funds received.  It is the policy of the Tax Commission to pay the oldest liabilities first, including tax, penalty and interest.  To prevent penalty and interest from continuing to accrue, a taxpayer should pay the entire delinquency including tax, penalties and interest at the time of the submission of the waiver request.

DECISION AND ORDER

            However, after reviewing the file, 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 XXXXX be granted.  It is so ordered.

            DATED this 16 day of June, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            G. Blaine Davis