BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL, DECISION
: Appeal No. 89-2482
COLLECTION DIVISION OF :
THE UTAH STATE TAX COMMISSION, : Acct No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission requesting waiver of the penalty and interest assessment on Petitioner's third quarter XXXXX sales tax return. Pursuant to Utah Code Ann. §63-46b-5t(1)(b,j) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.
In XXXXX, Petitioner applied for a sales tax license and was issued sales tax number XXXXX. By the first of XXXXX, Petitioner had not received any forms for the payment of sales tax. He therefore contacted the Utah State Tax Commission offices and was told that forms would be sent. As of the first week of XXXXX, no forms had arrived so Petitioner contacted the Tax Commission offices again. This time he was told that he was not listed in the computer but that the problem would be taken care of and the forms would be sent to him. As of the third week of XXXXX, Petitioner still had not received any forms so he again called the Tax Commission offices. He was told then that hand written and computer forms would be sent to him. Petitioner then asked if there would be a problem due to late filing and was told there would be no problem. He was told that penalty might be automatically added but to request a waiver and such penalty would be dropped because of the difficulties with the computer.
During the first half of XXXXX, Petitioner received three sets of forms, two handwritten and one a computer printed form. Petitioner filled out the computer form and sent it in with his tax payment. This process took Petitioner approximately a week from the time he received the forms. Petitioner at this time paid only the amount of the tax assessed. During the first part of the year XXXXX, Petitioner received notices of penalties being assessed and Petitioner requested waiver of such penalties as he was instructed in XXXXX.
On XXXXX, Petitioner received a notice that his request for waiver of penalties and interest had been denied. Within a week he appealed that decision to the Appeals Section of the Utah State Tax Commission.
The period in question, the third quarter of XXXXX, was the first quarter for which Petitioner's business filed sales tax returns.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for the late payment and late filing of sales taxes. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon reasonable cause shown waive penalties and interest assessed under the above statutes.
Such reasonable cause has been shown in this case. Petitioner did have the duty to follow up himself when he found that proper forms had not been sent for the filing of his sales tax return. Petitioner fulfilled this duty, contacting the Tax Commission several times in an effort to timely obtain the forms necessary and finally receiving those forms late through no fault of his own. Petitioner filed and paid the taxes as soon as possible after receiving the forms.
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petitioner's request be granted, and penalties and interest be waived.
DATED this 9th day of March, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
FOR THE COMMISSION
G. Blaine Davis