87-3250 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

COLLECTION DIVISION OF THE                          :           Appeal No. 87-3250

            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.  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 Tax Commission.  XXXXX represented the Petitioner.

            Petitioner stated that she had sent for a tax number in XXXXX, but did not receive the license until XXXXX.  In XXXXX, she received a letter notifying her of a $50.00 late filing penalty for XXXXX.  Petitioner stated that the Taxpayer Services Unit had demanded payment by XXXXX, one day after the hearing, or they will send a sheriff to Petitioner's home to attach the property or garnish her income.  Petitioner requests a waiver of the penalty.

FINDINGS

            Petitioner is not subject to a late filing penalty for XXXXX.  This was Petitioner's first time filing and the Petitioner had not received the sales tax license or the forms prior to the expiration of the filing deadline.

            Tax Commission records indicate that Petitioner's return for XXXXX was also filed late because the due date of the return was XXXXX and the postmark on the envelope was XXXXX.  This is incorrect.  The return for XXXXX was timely filed since the return was postmarked by the statutory due date.  If a return is timely mailed it is timely filed.

            Because of the small amount of tax involved, the Petitioner is advised to consider the option of filing on an annual basis instead of on a quarterly basis.  The Tax Commission commends Petitioner for her honesty and for her efforts to do the right thing regarding taxes.

DECISION AND ORDER

            Based on the foregoing, it is the decision of the Utah State Tax Commission that penalty and interest on sales and use tax account No. XXXXX for XXXXX be waived.

            The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision and issue a refund of the penalty and interest paid by the Petitioner

            DATED this 10 day of February, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            G. Blaine Davis

Commissioner   Commissioner