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