89-1975 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner :

: FINDINGS OF FACT,

v. : CONCLUSIONS OF LAW

: AND FINAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 89-1975

UTAH STATE TAX COMMISSION :

: Account No. XXXXX

Respondent :

_____________________________________

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. No one appeared representing either the Petitioner or the Respondent, although a notice of hearing, dated XXXXX, was duly mailed to the Petitioner. Consequently this decision is based upon the documents included in the file.

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 tax.

2. The periods in question are the second, third and fourth quarters of XXXXX, and the first and second quarters of XXXXX.

3. Petitioner bases this appeal on the fact that Petitioner's certified public accountant (CPA) calculated the figures incorrectly in filling out Petitioner's sales tax returns. Although Petitioner did give the CPA the proper figures, he reported erroneous figures on the returns.

4. When Petitioner discovered the error, Petitioner on its own initiative brought the problem to the attention of the Tax Commission to resolve it. Petitioner has paid the delinquent taxes in question and has requested a waiver of penalties and interest.

5. By letter dated XXXXX, the Tax Commission waived all penalties in the case, but the interest amounts are still outstanding.

6. Petitioner now requests that interest amounts also be waived,

CONCLUSIONS OF LAW

1. Utah Code Ann. 59-1-401 and59-1-402 provide that penalties and interest shall be assessed for the late payment and filing of taxes.

2. Utah Code Ann.59-1-401(8) provides that the Commission may, upon reasonable cause shown, waive or reduce the penalties and interest assessed under the above statutes.

3. Such reasonable cause has not been shown for waiving the interest in this case. Although this difficulty arose out of an accountant's mistake and Petitioner took the initiative and made every effort to rectify the situation when it was discovered, these were the considerations which lead the Commission to waive the penalty amount. The interest should not be waived because the State did not have the use of the tax funds in question between the time that they were due and the time that they were paid, and the State should be compensated for that loss of use.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request to waive the interest in this case be denied.

DATED this 4th day of April, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

ABSENT

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner