89-1045 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

: AND FINAL DECISION

:

v. :

: Appeal No. 89-1045

COLLECTION 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, before Joseph G. Linford, Presiding Officer. The Petitioner was represented by XXXXX. No one representing the Respondent appeared at the hearing.

Based upon the recommendations of the Presiding Officer and upon the evidence and arguments in the file and also presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is XXXXX.

3. When Petitioner obtained his sales tax license he was informed that he would receive tax forms for the payment of the sales tax sometime after the first of the year.

4. Accordingly, Petitioner alleges he had his records ready and money available to pay the tax when he received the proper forms.

5. Petitioner did not receive the forms and called the Tax Commission offices on XXXXX, to inquire as to why he had not received the forms. He was told at that time that he was late in paying his taxes and that a penalty would be assessed. He was advised to submit a letter requesting waiver of the penalty.

6. His original letter and two subsequent copies were either lost by or were never received by the Tax Commission. A penalty of $$$$$ was assessed on Petitioner's account in addition to interest on the delinquent tax amount.

CONCLUSIONS OF LAW

Utah Code Ann. §59-1-401 (1987 Rep., 1989 Supp.) provides that the Tax Commission may assess penalties for the late filing of tax returns and the late payment of taxes due. Utah Code Ann. §59-1-402 (1987 Rep., 1989 Supp.) provides that interest in the amount of 12% annually shall be assessed on past due taxes. Utah Code Ann. §59-1-401(8) (1987 Rep., 1989 Supp.) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalties or interest assessed under the above statutes.

Reasonable cause has been shown for waiver of a portion of the penalty assessed in this case due to the misunderstanding between the Petitioner and the Collection Division of the Utah State Tax Commission.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the penalty and interest be waived, and the Collection Division shall remove these obligations from the Petitioner's account.

DATED this 20th day of November, 1989.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner