BEFORE THE STATE TAX COMMISSION OF UTAH
v. : INFORMAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 88-1450
UTAH STATE TAX COMMISSION, : 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 XXXXX annual 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 annual sales tax return for XXXXX and was assessed late filing and late payment penalties and interest. Petitioner asserts that she did file the return shortly after she sold her business in XXXXX. Petitioner believes she must have inadvertently failed to remit the tax due with the return and argues that had the Tax Commission notified her earlier of the error, she would have remitted the tax immediately.
Although Petitioner asserts she filed the return during XXXXX, Tax Commission records indicate the return and tax were not received until XXXXX, XXXXX months after the due date. Utah Code Ann. §59-1-401(1)(b) provides that a penalty of the greater of $$$$$ or ten percent of the tax due shall be assessed for failure to file a timely return. If the tax is not paid within 90 days of the due date of the return, an additional penalty of the greater of $$$$$ or ten percent of the tax due is assessed. Petitioner's failure to file a XXXXX sales tax return by the XXXXX deadline opened her to liability for penalty and interest assessments. Because Petitioner did not remit the tax within 90 days of the due date, the assessment of late filing and late payment penalties and interest is both valid and appropriate. Utah Code Ann. §59-1-401(7) authorizes the Commission to waive such penalties and interest; however, the Commission will do so only upon a showing of reasonable cause. Carelessness on the part of the taxpayer is not considered reasonable cause.
DECISION AND ORDER
Based on the foregoing, it is the decision and order of the Commission that the request for waiver of penalty and interest be denied.
DATED this 29 day of September, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
FOR THE COMMISSION
G. Blaine Davis