BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-0594
UTAH STATE TAX COMMISSION, : Acct.
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission for reconsideration of a
Commission decision denying a request for waiver of penalty assessments on
Petitioner's XXXXX first quarter sales tax return. Pursuant to Utah Code Ann. § 63-466-5(1)(b), no hearing was held
on this case. A review of the file
served as the evidentiary basis for this decision.
XXXXX,
(Petitioner) was in a start-up phase of business operation during the first
quarter of XXXXX. Actual business did
not begin until XXXXX, and no sales tax was collected for the first quarter of
XXXXX. Petitioner failed to file a
timely sales tax return for the first quarter of XXXXX and now seeks a waiver
of the $$$$$ late filing penalty.
FINDINGS
Utah
Code Ann. §59-12-111, dealing with sales and use tax stipulates that each person
engaging or continuing in any business requiring sales tax license is required
to file a return. Failure to do so
opens the taxpayer to liability for all penalties and interest provided for by
law. Utah Code Ann. §59-1-401(1)(b)
allows a $$$$$ penalty for failure to file a timely tax due or no tax due
return. Notice of filing requirements
is given to all tax license recipients, and thus Petitioner should have been
aware that penalties would be assessed for failure to file timely returns.
However,
under Utah Code Ann. §59-1-401(7) the Commission has the authority to waive any
penalties after reviewing all facts and information relative to the case at
hand. In light of the fact that this is
Petitioner's first experience with sales tax matters and no tax was due for the
period in question, the Tax Commission finds reasonable cause to waiver the
penalty.
DECISION AND ORDER
Based
on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission
that the request for waiver of penalty be granted.
DATED
this 26 day of August, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen