BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-1146
UTAH STATE TAX COMMISSION, : Acct. No. XXXXX
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.
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.