BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : FORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-1188
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
Respondent. :
_____________________________________
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.
FINDINGS
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.