BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0057
STATE TAX COMMISSION OF UTAH, : Acct. No. XXXXX
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 access penalty and interest on sales and use tax account No. XXXXX for the second quarter of XXXXX. A telephone conference hearing was held 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 his records did not indicate that a notification of prepayment requirement was received. Petitioner also presented evidence of the actual tax liability of XXXXX and XXXXX. Petitioner has paid the interest and requests a waiver of the penalty.
Tax Commission records indicate that Petitioner prepaid sales and use taxes for the second quarter of XXXXX, but did not prepay for XXXXX. Petitioner met the threshold requirements for prepayment in XXXXX. Petitioner was in chapter 11 bankruptcy from XXXXX through XXXXX. Respondent's records indicate that Petitioner was on the list of companies that were sent forms for XXXXX. The Tax Commission finds that Petitioner had sufficient notice with which to make prepayment for the second quarter of XXXXX. Whether or not the form was received is not the issue. Utah Code Ann. §59-12-108 (1953) sets forth the requirements for prepayment and is constructive notice to Petitioner that a prepayment requirement exists in Utah. The fact that Petitioner did file a prepayment in XXXXX constitutes actual notice that a prepayment requirement exists for Utah. Petitioner's actual XXXXX liability amounted to $$$$$. Petitioner's actual XXXXX liability amounted to $$$$$. The 90% required prepayment was $$$$$. A 10% penalty amounts to $$$$$.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver on sales and use tax account No. XXXXX for the second quarter of XXXXX be denied except to the extent that penalty be adjusted based on the actual liability. The Collection Division of the Utah State Tax Commission is hereby ordered to adjust the penalty and interest in accordance with this decision.
DATED this 28 day of July of 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis