88-0648 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0648

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

Pursuant to Utah Code Ann. 63-466-5(1)(b), no hearing was held. Petitioner's file served as the evidentiary basis for this decision.

Petitioner was in the start up phase of business during the second quarter of XXXXX, and opened its doors for business on XXXXX. Petitioner failed to file a timely sales tax return for the second quarter of XXXXX and was assessed a late filing and payment penalty and interest.

XXXXX, Manager and representative for Petitioner asserts that she was informed by the Commission that because of the short amount of time left in the reporting period, the second quarter report and receipts could be filed with the third quarter report. Petitioner did file the second quarter report and receipts with a timely third quarter report. Petitioner now requests a waiver of the late filing and payment penalties assessed.

FINDINGS

Utah Code Ann. 59-12-107 stipulates that sales tax receipts and reports are due quarterly and that failure to file such reports opens the vendor to liability for penalties and interest. Utah Code Ann. 59-1-401(1)(b) provides that a penalty of $$$$$ shall be assessed for failure to file a timely return. Another penalty of $$$$$ is assessed for failure to pay the tax within ninety days of the due date. Thus, the assessment of the penalties were valid. However, considering (1) that Petitioner was a new business and the period in question was the first period which Petitioner was required to file, and (2) that Petitioner apparently received erroneous information, the Tax Commission finds reasonable cause to waive the penalty.

DECISION AND ORDER

Based on the foregoing facts, it is the decision of the Commission that all penalties be waived. However, Petitioner is still liable for all interest charged.

DATED this 26 day of August, 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