BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-0597
STATE TAX COMMISSION OF UTAH, ) 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 and interest assessments on Petitioners' second quarter XXXXX sales tax return. Pursuant to Utah Code Ann. §63-46b-5 (l)(b), no hearing was held. A review of Petitioners file served as the evidentiary basis for this decision.
Petitioner failed to file a timely second quarter XXXXX sales tax return and was assessed a late filing penalty and interest. Petitioner asserts that, at the time the return was due, Petitioner was being audited by the Commission. The Tax Commission auditors had found discrepancies in the manner in which Petitioner had filed the previous returns. In order to ensure that the second quarter XXXXX return was properly filed, Petitioner postponed filing the document until the completion of the audit. Petitioners notified the auditors of their decision to delay the return filing, but received no instruction that they should do otherwise.
Utah Code Ann. §59-12-107 (8) provides that every vendor shall file a sales or use tax return with the Commission on a quarterly basis. The return is due on or before the last day of the month following the calendar quarter. Subsection (18) provides that failure to file any return as required subjects the vendor to liability for penalty and interest assessments. Utah Code Ann. §59--1-401 (l)(b) provides that a penalty of the greater of $$$$$ or 10 percent of the tax due shall be assessed for failure to file a timely tax due or no tax due return. However, subsection 7 authorizes the Commission to waive such penalties upon a showing of reasonable cause. Petitioners discussed with the auditors their intentions to delay the filing of the return until the audit was completed and were not instructed to do otherwise. Reliance upon information obtained from the Commission can be considered reasonable cause.
DECISION AND ORDER
Based on the foregoing facts, it is the Decision and Order of the Commission that the request for a waiver of penalty be granted. Petitioners will be liable for all interest assessments, however.
DATED this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.