88-0724 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0724

STATE TAX COMMISSION OF UTAH, ) 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 a penalty assessment on Petitioner's XXXXX third quarter sales tax return. Pursuant to Utah Code Ann. 63-46b-5-(l)(b) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner, XXXXX, failed to file a timely third quarter XXXXX sales tax return. During a routine Sales and Use tax audit, it was determined that Petitioner had a XXXXX within Utah. An assessment was made, and subsequently paid XXXXX. While the audit was being conducted, the auditor was registering Petitioner for Sales and Use tax purposes. Petitioner asserts that, due to a delay in establishing a tax account, Petitioner did not receive notification of the establishment of the account and was therefore unaware of any filing requirements. Petitioner points out that, originally there were two numbers assigned to Petitioner's account, and that after resolving the duplicate registration problem they promptly filed and paid the third quarter XXXXX taxes on XXXXX.

FINDINGS

Utah Code Ann. 59-1-401(1)(b) stipulates that the penalty of the greater of $$$$$ or 10% of the tax due shall be assessed for failure to file a timely return. Utah Code Ann. 59-1-401(7) authorizes the Commission to waive such penalties upon a showing of reasonable cause. Because Petitioners were not notified of the establishment of their account, or of filing requirements, a waiver of the penalty assessment is in order.

DECISION AND ORDER

Based on the foregoing facts, it is the Decision and Order of the Commission that the request for waiver of the penalty assessment be granted.

DATED this 27 day of September, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

FOR THE COMMISSION

G. Blaine Davis

Commissioner