BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88 1168
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 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.
FINDINGS
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.
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