89-1234 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

: AND FORMAL DECISION

:

: Appeal No. 89-1234

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH )

: Account No. XXXXX

Respondent :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Tax Commission. Present and representing the Petitioner were XXXXX and XXXXX.

The Petitioner filed this appeal requesting a waiver of penalties and interest which were assessed as a result of audits conducted on the Petitioner's business from XXXXX through XXXXX and XXXXX through XXXXX.

Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The periods in question are XXXXX through XXXXX and XXXXX through XXXXX.

3. As a result of the audit which was conducted for the period XXXXX through XXXXX, additional sales tax in the amount of $$$$$ was found to be owing. That audit was preformed in XXXXX. Payment of the tax was made on XXXXX.

4. A penalty of $$$$$ was assessed for the late payment of the sales tax due.

5. For the audit period XXXXX through XXXXX, additional sales tax in the amount of $$$$$ was found to be owing. That audit was conducted in XXXXX.

6. The entire amount of taxes due for the second audit has not been paid. A penalty in the amount of $$$$$ was assessed for the late payment of the sales tax for that audit.

7. The deficiencies in sales tax arose from the Petitioner's failure to obtain exemption certificates on those sales he treated as tax exempt and out-of-state sales which could not be properly documented.

8. The Petitioner contested the accuracy of the audit and met with a representative of the Tax Commission to review that audit. As a result of that review, adjustments to the audit were made.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties or interest upon a showing of reasonable cause. Utah Code Ann. §59-1-401(8).

FINAL DECISION

Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty and interest for the audit period XXXXX through XXXXX. The Petitioner's request to waive the penalty and interest for the audit period XXXXX through XXXXX is, however, denied. It is so ordered.

DATED this 27th day of February, 1990.

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