89-1047 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, :

:

v. : INFORMAL DECISION

: Appeal No. 89-1047

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, :

: Acct No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This matter comes before the Utah State Tax Commission pursuant to a Request for Reconsideration filed by the Petitioner dated XXXXX, and received by the Tax Commission XXXXX.

An informal decision was rendered dated XXXXX, by the Tax Commission which denied Petitioner's request for waiver of penalty and interest on the late filing of the Petitioner's sales tax return for the third quarter XXXXX. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j), no hearing was held. Petitioner's file served as the evidentiary basis for that decision and that file including Petitioner's letter of XXXXX now serves as the evidentiary basis for this decision on the Petition for Redetermination.

Petitioner alleges in his letter dated XXXXX, that a Mr. XXXXX, DBA: XXXXX, received a waiver of penalty and interest from the Tax Commission under circumstances similar to those of Petitioner. Research into Mr. XXXXX's account reveals that Petitioner has been misinformed in that regard. To protect Mr. XXXXX's right of confidentiality, it is not proper to reveal the circumstances of Mr. XXXXX's account. However, it may be noted that those circumstances are different from those in this case and have no bearing here. Additionally, each case must stand on its own merits independent of other cases.

One of the major reasons for the previous denial was the general policy of the Tax Commission that it is the responsibility of taxpayers to obtain information and to be aware of deadlines and procedures for the timely filing and payment of taxes and that Petitioner had failed to meet that responsibility. However, in his Petition for Redetermination of XXXXX, Petitioner asserts that he did assume that responsibility by contacting the Tax Commission and requesting the necessary information in a timely manner but the information did not come from the Tax Commission in time for him to timely pay his third quarter XXXXX sales taxes.

This was Petitioner's first quarter in filing and paying sales tax for his small business. Petitioner has since filed and paid his taxes on time.

FINDINGS

Utah Code Ann. §§59-1-401,59-1-402,59-12-107(19) and59-12-111 provide that penalty and interest shall be assessed for the late filing of tax returns and the late payment of sales taxes. Utah Code Ann. §59-1-401(8) provides that the Commission upon reasonable cause shown may waive or reduce any of the penalties or interest imposed under the above statutes. Reasonable cause for waiver of the penalty and interest has been shown in this case since Petitioner timely made the effort to contact the Commission and tried to obtain the necessary information, since this was his first quarter filing sales tax returns and also since his record has been good with the Tax Commission since that time.

DECISION AND ORDER

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

DATED this 9th day of March, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

FOR THE COMMISSION

G. Blaine Davis

Commissioner