BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88 1168
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 assessments of Petitioner's first quarter XXXXX sales tax return. Pursuant to Utah Code Ann. §63-46b-5(1)(b) no hearing was held. A review was of Petitioner's file served as the evidentiary basis for its decision.
Petitioner failed to file a timely no tax due, first quarter XXXXX sales tax return and was assessed a late filing penalty. Petitioner applied for and received a tax number in XXXXX. In XXXXX, XXXXX, representative for Petitioner, decided the tax number was no longer needed and returned her sales tax license with a request for cancellation of the account. Petitioner began receiving notices of demand for payment of taxes and again requested that the account number be canceled. After making several contacts with the Commission the Petitioner was told that there was no record of the cancellation request. Petitioner has submitted copies of the cancellation request along with this appeal.
Utah Code Ann. §59-12-107(8) stipulates that every vendor shall file a sales tax return with the Commission for the preceding quarterly period. The return is due on or before the last day of the month succeeding the calendar quarter. Failure to file a return as required opens the vendor to liabilities of penalty and interest. 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 due or no tax due return. Petitioner's failure to file a timely return for the period in which her account was active opened her to liability for all late filing penalties. However, Utah Code Ann. §59-1-401(7) allows the Commission to waive any penalties and the Commission will do so upon a showing of reasonable cause. Because it was the Petitioner's first filing period and there was no tax due, a waiver of the penalty is in order.
Based on the foregoing facts, it is the decision of the Commission that a request for waiver of late filing penalty be granted.
DATED this 27 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION