88-1563 - Sales & Use

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

: Appeal No. 88-1563

AUDITING DIVISION OF THE :

UTAH STATE TAX COMMISSION, :

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Rules of Administrative Procedure and the Administrative Procedures Act for formal adjudicative proceedings on XXXXX. James E. Harward, Presiding Officer, and Commissioner G. Blaine Davis heard the matter for and in behalf of the Tax Commission. The Petitioner was present represented by XXXXX, XXXXX, and XXXXX. XXXXX appeared representing the Respondent.

Based upon the recommendation of the Presiding Officers and the facts and evidence presented at the hearing the Tax Commission makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is XXXXX through XXXXX.

3. The audit was commenced on XXXXX. The final Notice of Deficiency was issued on XXXXX. The tax was paid on XXXXX.

4. Petitioner argues that since there was lengthy period of time between the commencement and the completion of the audit that interest should be abated during the period of the audit.

5. During the period of the audit, the Petitioners were cooperative and endeavored to respond to all of the requests of the Respondent in a timely and efficient manner.

6. The tax deficiency was based upon a build up in the tax accrual account. The evidence would indicate that deductions were not taken from the accrual account after taxes were paid. However, the Petitioners endeavored to resolve the matter as quickly as possible by paying the tax due and requesting a waiver of the penalty and interest, rather than contesting the tax and doing a line by line audit for the entire audit period.

CONCLUSIONS OF LAW

The Tax Commission is required to administer and supervise the tax laws of the State of Utah. (Utah Code Ann. §59-1-210(5).) The Tax Commission is also granted the authority to waive, reduce or compromise any penalties or interest after making a record of its reasons. (Utah Code Ann. §59-1-401(8).)

DECISION AND ORDER

The Tax Commission finds sufficient grounds for granting the Petitioners' request in part. The Tax Commission will waive the penalty associated with this matter and will only charge interest in the amount of $$$$$. It is so ordered.

DATED this 25 day of October, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner