BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
DBA XXXXX
Petitioner, :
:
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-0057
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 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.
FINDINGS
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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner