BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-1169
STATE TAX
COMMISSION OF UTAH, ) 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
assessments 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 no tax due sales tax return for
XXXXX and was assessed a late filing penalty of $$$$$. Petitioner was in the start-up phase of her
direct sales business in XXXXX and had no sales for the third quarter of XXXXX.
Petitioner asserts that she did not receive any information about her filing
responsibilities and was not aware she needed to file a form when no tax was
due. Petitioner learned of her
responsibilities only after contacting the Commission. Upon notice, Petitioner immediately filed
her third quarter return, which was received by the Commission XXXXX. Petitioner asks that her inexperience in
business and sales tax matters be given consideration when determining the
outcome of this waiver request.
FINDINGS
Utah
Code Ann. §59-12-107(8) provides that every vendor shall file a sales and use
tax return with the Commission on or before the last day of the month following
the quarterly period. Failure to do so
opens the vendor to liability for late filing penalties and interest
assessments. Utah Code Ann. §59-1-401
provides that a penalty of the greater of $$$$$ 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 the tax return by the XXXXX deadline subjected her
to liability for the late filing penalty.
Utah Code Ann. §59-1-401 (7) authorizes the Commission to waive such
penalties, and the Commission will do so upon a showing that the noncompliance
was due to reasonable cause. In light
of the fact that this was Petitioner's first experience with sales tax matters,
and no tax was due for the period in question, granting the request for waiver
of penalty appears to be reasonable.
DECISION AND ORDER
Based
on the foregoing facts, it is the Decision and Order of the Utah State Tax
Commission that the request for 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