BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL DECISION
: Appeal No. 89-1459
COLLECTION DIVISION OF THE :
STATE TAX COMMISSION OF UTAH, )
: Account No. XXXXX
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 informal proceedings. No hearing was requested, therefore, the matter was conducted by review of the file before the Tax Commission.
On XXXXX the Commission received the Utah sales tax application form which had been submitted by the Petitioner. The application form was signed by XXXXX and dated XXXXX. Based upon the information contained on that application a liability date of XXXXX was established.
A sales tax certificate and number were sent to the Petitioner on XXXXX. Because the Petitioner did not have the certificate or number prior to that date, the quarterly sales tax returns for the second and third quarters of XXXXX were not filed on time.
The Petitioner was assessed a penalty of $$$$$ for failure to timely file and failure to timely pay the taxes due for the second and third quarters of XXXXX.
DECISION AND ORDER
In the present case, had the Petitioner submitted his application for a sales tax license on XXXXX which was the date the application was signed, there would have been a good likelihood that the license would have been issued to the Petitioner in time for it to file the quarterly sales tax for the second quarter of XXXXX. As it was, the Petitioner did not submit that application until XXXXX, and the sales tax license was mailed three months later. Therefore, the Petitioner had been collecting sales tax for three months without a sales tax license and without even filing an application for a sales tax license. Once a person commences business and collects sales tax, that person has a responsibility to become familiar with the sales tax laws, including the filing and payment requirements. The sales tax money collected was required to be remitted even if the business had not yet received the forms or a sales tax number. However, because of the length of time it took for the Commission to send a license and forms after the date the application was finally submitted, the Commission finds just cause to reduce the penalty to $$$$$.
Based on the foregoing, the Commission finds sufficient cause exists to reduce the penalty associated with the sales tax for the second and third quarters of XXXXX to an amount of $$$$$. The interest is not waived. It is so ordered.
DATED this 29th day of December, 1989.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
FOR THE COMMISSION
G. Blaine Davis