88-0603 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0603

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

Respondent. :

_____________________________________

STATEMENT OF CASE

Pursuant to Utah Code Ann. 63-466-51 (l)(b) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner, XXXXX, applied for and received a sales tax license for use in his part-time business. Because of an incorrect address, XXXXX did not receive his tax forms; subsequently, he failed to file his first sales tax return and was assessed a late filing fee of $$$$$. Petitioner has since abandoned his part-time business and canceled his sales tax license. Because Petitioner neither completed any work nor collected any tax through his business, he now requests a waiver of that penalty.

FINDINGS

Utah Code59-12-107 (8) states that sales tax reports are due the last day of the month following each calendar quarter. The penalty for failure to file a no tax due return within this time frame, as stipulated in Utah Code59-1-401 (l)(b), is $$$$$. The Petitioner's failure to file was in direct violation of the Utah Tax Code and the assessment of the $$$$$ penalty was valid.

However, Utah Code Ann. 9-1-401(7) authorizes the Commission to waive such penalties upon a showing of reasonable cause. Because this was Petitioner's first filing experience, no tax was due, and Petitioner had not yet received his return forms, Petitioner has shown reasonable cause.

DECISION AND ORDER

Based on the foregoing facts, it is the Decision and Order of the Utah State Tax Commission that the request of a waiver of penalty be granted.

DATED this 26 day of August, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew