BEFORE THE STATE TAX COMMISSION OF UTAH
v. : FORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-1188
STATE TAX COMMISSION OF UTAH, ) Acct. No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission in a prehearing conference held XXXXX. James E. Harward, Hearing Officer, conducted the meeting for and in behalf of the Utah State Tax Commission. XXXXX represented the Petitioner. Following the prehearing conference Petitioner waived to a formal hearing and requested a decision be made based on the contents of the file.
Petitioner, XXXXX, failed to file a timely fourth quarter XXXXX sales tax return and was assessed late filing and late payment penalties and interest. Petitioner asserts that the TC-71 forms used for filing sales tax returns were never received by them for the fourth quarter XXXXX. Petitioner simply did not remember that they could prepare a typed report and submit it in lieu of the TC-71 form. Petitioner requests that its excellent filing record be taken into account in determining whether a waiver of penalty and interest is appropriate.
Utah Code Ann. §59-12-107-(8) states that sales tax is due and payable on or before the last day of the month following each calendar quarter. Each vendor must file with the Commission a return for the proceeding quarterly period. Subsection 18 authorizes the Commission to assess penalties and interest for failure to comply with the filing requirements. Utah Code Ann. §59-1-401-l(b) states that a penalty of the greater of $$$$$ or 10 percent of the tax due shall be assessed for failure to file a timely return. If the tax is not paid within 90 days of the due date of the return an additional penalty of the greater of $$$$$ or 10 percent of the tax is assessed. Utah Code Ann. §59-1-402 authorizes the Commission to assess interest at the rate of one percent per month. Because Petitioner failed to file a timely return and to file and pay the tax due within 90 days of the return's due date, the penalty and interest assessments are valid. However, Utah Code Ann. §59-1-401-(7) authorizes the Commission to wave such penalties and the Commission will do so upon a showing of reasonable cause.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Commission that the request for waiver of late payment penalty be granted. The request for waiver of late filing penalty and interest assessments is denied.
DATED this 1 day of November, 1988.