88-2231 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

: Appeal No. 88-2231

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, : Account No. XXXXX

:

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Utah Administrative Procedures Act for a formal hearing on XXXXX before Joseph G. Linford, Presiding Officer. Petitioner was represented by XXXXX. No one representing Respondent appeared.

After reviewing the evidence and arguments of the parties in the record and the recommendation of the presiding officer, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales and use tax.

2. The period in question is the first quarter of XXXXX.

3. XXXXX testified that he was out of town when the deadline for filing and payment of the taxes for the period in question arrived and that he forgot to arrange for those taxes to be taken care of in his absence.

4. The tax in question was paid by check dated XXXXX, XXXXX days after the deadline for payment and filing of taxes for the period in question.

5. Petitioner has a good past history of timely payment and filing of sales tax.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be imposed for the late payment and filing of sales tax.

2. Utah Code Ann. §59-1-401(8) provides that the Commission may, upon reasonable cause shown, waive or reduce penalties assessed under the above statutes.

3. Such reasonable cause has been shown for a waiver of a portion of the penalties assessed. The fact that the tax in question was paid within a very short period of time after the deadline coupled with Petitioner's good past history of timely filing and paying of those taxes indicates that a waiver of a portion of the penalty is warranted. Such reasonable cause has not been shown, however, for a waiver of the remaining portion of the penalty and for waiver of the interest assessed. Mere human error or negligence on the part of a taxpayer is not sufficient cause for waiver of the remaining portion of the penalties. The State was deprived of the use of the tax funds in question between the time those funds should have been paid and the time that they were paid, and the State is entitled to be compensated for that loss.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that penalties be reduced to $$$$$ and the remaining portion of the interest be recalculated taking into consideration the reduction of the penalty. Petitioner's request for waiver of the remaining portions of the penalty and interest is denied.

DATED this 17 day of May, 199O.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner