BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0594
UTAH STATE TAX COMMISSION, : Acct. No. XXXXX
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 $$$$$ late filing penalty.
Utah Code Ann. §59-12-111, dealing with sales and use tax stipulates that each person engaging or continuing in any business requiring sales tax license is required to file a return. Failure to do so opens the taxpayer to liability for all penalties and interest provided for by law. Utah Code Ann. §59-1-401(1)(b) allows a $$$$$ 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