BEFORE THE UTAH STATE TAX COMMISSION
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS OF LAW
v. : AND FINAL DECISION
: Appeal No. 89-1396
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION :
: Account No. XXXXX
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 third quarter of XXXXX.
3. The period in question was the first period during which Petitioner was in business. Petitioner was very inexperienced in tax matters and in dealing with the Utah State Tax Commission. The taxes in question were mailed one day late.
There have been no difficulties with timely payment and filing of taxes since that time as Petitioner has hired an accountant to help them with such matters.
4. Petitioner incurred penalties and interest from both the state and federal governments. The federal government granted Petitioner's request for a waiver on XXXXX, and Petitioner's penalties and interest for withholding tax were waived by the State Tax Commission by a letter dated XXXXX. When Petitioner received this notice from the Tax Commission, Petitioner thought that this applied to both withholding and sales tax. Petitioner did not realize that there were two separate taxes and two separate penalties involved.
5. Petitioner's request for waiver of penalty and interest on the sales tax was denied by the Utah State Tax Commission by letter dated XXXXX.
6. The circumstances which incurred the penalties and interest for both the withholding and the sales tax were the same.
7. In addition, the forms and notices were being consistently sent from the Tax Commission to Petitioner at an erroneous address. The address to which these items were sent was an address at which Petitioner had never been located and of which Petitioner had no knowledge. This added to the confusion and to Petitioner's difficulty in resolving the matter.
8. Petitioner now requests that all penalties and interest be waived for the sales tax account as they were for the withholding tax account.
CONCLUSIONS OF LAW
1. Utah Code Ann. §§59-1-401 and59-1-402 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 been shown in this case. This is the first time Petitioner has had to file sales tax and Petitioner's history since the time involved in this case has been good. The same circumstances which dictated a waiver of the withholding penalties and interest would also indicate that a waiver in the sales tax penalties and interest is warranted.
DECISION AND ORDER
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalties and interest be granted.
DATED this 17th day of May, 1990. BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis