BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-1169
STATE TAX COMMISSION OF UTAH, ) 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 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 $$$$$. Petitioner was in the start-up phase of her direct sales business in XXXXX and had no sales for the third quarter of XXXXX. Petitioner asserts that she did not receive any information about her filing responsibilities and was not aware she needed to file a form when no tax was due. Petitioner learned of her responsibilities only after contacting the Commission. Upon notice, Petitioner immediately filed her third quarter return, which was received by the Commission XXXXX. Petitioner asks that her inexperience in business and sales tax matters be given consideration when determining the outcome of this waiver request.
Utah Code Ann. §59-12-107(8) provides that every vendor shall file a sales and use tax return with the Commission on or before the last day of the month following the quarterly period. Failure to do so opens the vendor to liability for late filing penalties and interest assessments. Utah Code Ann. §59-1-401 provides that a penalty of the greater of $$$$$ 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