89-0239 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX )

:

Petitioner, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. ) AND FINAL DECISION

: Appeal No. 89-0239

)

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

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

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

3. This case concerns the prepayment of Petitioner's sales and use tax for the second quarter of XXXXX. The first time Petitioner had been required to make such a prepayment was in XXXXX and Petitioner had erroneously thought that was the only year it would be required to make the prepayment. Therefore, in XXXXX Petitioner filed and paid his sales tax at the usual time instead of at the deadline for the prepayment. Petitioner was assessed penalty and interest for the late payment.

4. Petitioner has paid the tax and interest amounts and requests a waiver of the penalty. Petitioner has a good past history of timely payment of sales and use taxes and asserts that this penalty is large and severe for his size of business.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and 59-1-402 provide that penalties and interest shall be assessed for the late filing of sales taxes.

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

3. Such reasonable cause has not been shown in this case. Petitioner was on notice that the prepayment was required for his business. Although he was confused about the continued applicability of the prepayments each succeeding year and thought that it would not apply in XXXXX as it did in XXXXX, it is nevertheless Petitioner's responsibility to be sufficiently aware of the tax laws and how they operate so that Petitioner can properly comply with those laws.

DECISION AND ORDER.

Based on the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty be denied.

DATED this 17th day of May, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner