88-0730 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0730

UTAH STATE TAX COMMISSION, : 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 third quarter XXXXX sales tax return. Pursuant to Utah Code Ann. 63-46b-5(1)(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. Petitioner was a new business and was unfamiliar with filing requirements. Petitioner asserts that no sales tax forms were received for the third quarter of XXXXX.

FINDINGS

Utah Code Ann. 59-12-107(8) stipulates that every vendor shall, on or before the last day of the month following each calendar quarter, file with the Commission a return for the preceding quarterly period. Failure to do so opens the vendor to liability for penalty assessments. Section 59-1-401(1)(b) stipulates 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, Section 59-1-401(7) authorizes the Commission to waive such penalties. Because this was Petitioner's first period to file and no tax was due, a denial of the request for waiver of penalty would be inequitable.

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.

DATED this 27 day of September, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

FOR THE COMMISSION

G. Blaine Davis

Commissioner