BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 88-1246
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 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
failed to file a timely annual sales tax return for XXXXX and was assessed a
late filing penalty and interest for the late period. Petitioner opened a new
business in XXXXX and believed, because the sales tax return was due on an
annual basis, that the return could be filed along with its personal income tax
return on or before XXXXX.
FINDINGS
Utah
Code Ann. §59-12-107(8) provides that every vendor must file a sales or use tax
return with the Commission on or before the last day of the month following the
filing period. Because Petitioner was
to file its sales tax return on an annual basis, the return was due and payable
XXXXX. Petitioner's return was not received by the Commission until XXXXX.
Petitioner's failure to file a timely return opened it to liability for late
filing penalty and interest assessments.
Utah
Code Ann. §59-1-401(1)(b) provides that a penalty of the greater of $$$$$ or 10
percent of the tax due shall be assessed for failure to file a timely return. Utah Code Ann. §59-1-402 authorizes the
Commission to charge interest on tax due accounts at the rate of 12 percent
annually. Utah Code Ann. §59-1-401(7)
authorizes the Commission to waive penalty and interest assessments, 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
corrective measures were taken immediately upon discovery of the error, a
waiver of the penalty assessment is in order.
However, because the state of Utah was denied the use of the money
during the delinquency period, Petitioner should be held liable for the
interest assessment.
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 the penalty assessment be
granted. The request for waiver of
interest assessments is denied.
DATED
this 27 day of September, 1988.