BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION DIVISION
OF THE : Appeal No. 88-1146
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 penalty and interest assessed 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
failed to file a timely third quarter XXXXX sales tax return and was assessed
late filing and late payment penalties.
XXXXX, representative for Petitioner, asserts that information received from
the Tax Commission lead him to believe that a computerized statement and form
would be mailed at the proper time of filing.
Petitioner did not receive the third quarter report form and on XXXXX
received a Notice and Demand for payment of taxes for that quarter. The return and tax remittance were
immediately filed.
FINDINGS
Utah
Code Ann. §59-12-107(8) provides that every vendor shall file with the
Commission a return for the preceding quarterly period. This return is due on or before the last day
of the month following the calendar quarter. Petitioner's third quarter reports
due XXXXX were received by the Commission on XXXXX. Petitioner's failure to file a timely return subjected it to
liability for late filing penalties.
Utah Code Ann. §59-1-401(1)(b) stipulates that a penalty of the greater
of $$$$$ or 10 percent of the tax due shall be assessed for failure to file a
timely tax return. An additional
penalty of the greater of $$$$$ or 10 percent of the tax due will be assessed
for failure to pay the tax within 90 days of the due date. Because Petitioner filed and paid within the
90 days of the due date, Petitioner is not liable for the late payment penalty.
Utah
Code Ann. §59-1-401(7) authorizes the Commission to waive or reduce any
penalties and the Commission will do so upon a showing of reasonable
cause. Because this is Petitioner's
first filing quarter, and because Petitioner, upon notification of the problem
immediately filed as required, a waiver of the penalty is in order.
DECISION AND ORDER
Based
upon the foregoing facts, it is the decision of the Commission that the request
for waiver of penalties be granted. The
request for waiver of interest is denies.