87-3253 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-3253

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 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.

Petitioner stated that during the period in question the company was undergoing lengthy and complicated mergers which involved several companies and their various accounting departments. Several audits were conducted at the same time. A misunderstanding occurred with the Tax Commission as to whether Petitioner could file under its own account or whether it could file a consolidated return with XXXXX. During this period a new computer system was also installed. Petitioner acknowledged that it failed to file but has paid the tax and interest. Petitioner requests a waiver of the penalty. Petitioner noted that it has timely filed in prior years and that the Petitioner had brought the delinquency to the attention of the Tax Commission and promptly filed and paid.

FINDINGS

Penalty and interest were properly assessed in this matter since the return was, in fact, filed late. However, the Tax Commission, in its discretion, hereby reduces the penalty to $$$$$ based on Petitioner's prior good filing history and based on the fact that Petitioner took the initiative to contact the Tax Commission when the error was discovered.

DECISION AND ORDER

Based on the foregoing, the Utah State Tax Commission hereby reduces the penalty on sales and use tax account No. XXXXX for XXXXX to $$$$$. Interest shall remain as assessed.

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

DATED this 9 day of March, 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