88-0343

Sales

Signed 11/8/88

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

Petitioner, )

)

v. ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

) AND FINAL DECISION

COLLECTION DIVISION OF THE ) Appeal No. 88‑0343

STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX

Respondent. )

_____________________________________

STATEMENT OF CASE

A prehearing conference was held on XXXXX in the offices of the Utah State Tax Commission. David J. Angerhofer, Presiding Officer, heard the matter for the Tax Commission. XXXXX, CPA, represented the Petitioner. During the course of the prehearing conference the presiding officer converted the proceeding to a formal hearing.

FINDINGS OF FACT

This matter concerns the failure to prepay sales and use tax for the second quarter of XXXXX. The XXXXX was a new partnership in the latter part of XXXXX and was first subject to the 90 percent prepayment requirement for the second quarter of XXXXX. Petitioner's sales and use tax liability exceeded $24,000 in both the first and second quarters of XXXXX. The Petitioner did not prepay sales and use taxes for the second quarter of XXXXX and was not assessed a penalty for failure to do so. However, because this was a new business and they were not fully aware of the requirement to prepay, the Commission has determined to waive the penalty.

CONCLUSIONS OF LAW

Utah Code Ann. '59‑12‑108 (1953) clearly sets forth the prepayment requirements for the second quarter of each year. Petitioner should have made the prepayment for both XXXXX and XXXXX, but the Commission has power to waive the penalty.

FINAL DECISION

Based on the foregoing, 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 the second quarter of XXXXX be granted.

DATED this 8 day of November, 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

NOTICE: You have ten (10) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ~' 63‑46b‑13(1), 63‑46b‑14(2)(a).

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