88-1645 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, :

: FINDINGS OF FACT

v. : CONCLUSIONS OF LAW,

: FINAL DECISION

: Appeal No. 88-1645

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH, )

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a prehearing conference on the XXXXX. Roger O. Tew and Joe B. Pacheco, Commissioners, heard the matter for and on behalf of the Tax Commission. XXXXX all appeared representing the Petitioner. XXXXX appeared representing the Collection Division. During the course of the prehearing conference the matter was converted to a hearing. Evidence was taken and arguments were presented. Based upon the foregoing and the recommendation of the presiding officers, the Tax Commission makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is the fourth quarter XXXXX through the fourth quarter XXXXX.

3. The amount in question is the penalty of $$$$$.

4. During the quarters in question, the Petitioner was going through a period of rapid internal growth and change.

5. The Tax Commission conducted an audit just prior to the periods in question. The Petitioners were under the impression they would receive a credit as a result of the audit, however, it was discovered that they owed additional money, and were late on quarterly filings.

6. The Respondent admitted that audit adjustments resulting in a credit may have created some confusion as it related to the filing of the quarterly returns.

7. The fourth quarter of XXXXX was only XXXXX days late.

CONCLUSIONS OF LAW

The Tax Commission is empowered by Utah Code Ann. § 59-l-401(8) to waive, reduce or abate penalties after making a record of its reasons.

DECISION_AND ORDER

The Tax Commission, after reviewing the request of the Petitioner and the evidence presented, finds that the fourth quarter of XXXXX, the first quarter of XXXXX, and the fourth quarter of XXXXX penalties are to be waived on the grounds that there is sufficient confusion created by the audit adjustments,

and one quarter only being five days late, the Tax Commission will grant the Petitioner's request and waive the penalty for these quarters. However, the Tax Commission finds no compelling reasons why the penalty and interest for the second and third quarters of XXXXX should be waived. The Tax Commission therefore orders the waiver of the three quarters indicated above together with associated interest for the fourth quarter XXXXX and the first quarter of XXXXX. The Tax Commission does not waive the penalty or the interest on the second and third quarters of XXXXX nor the interest for the fourth quarter of XXXXX.

DATED this 22 day of December, 1988

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner