BEFORE THE UTAH STATE TAX COMMISSION
: FINDINGS OF FACT,
v. : CONCLUSION OF LAW
: AND FINAL DECISION
COLLECTION DIVISION OF THE : Appeal No. 89-2600
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 telephone hearing on XXXXX, before Joseph G. Linford, Presiding Officer. Petitioner was represented by XXXXX and XXXXX. No one representing the Respondent appeared at the hearing.
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 second quarter of XXXXX.
3. Petitioner was required to make a sales and use tax prepayment during XXXXX. The Petitioner was not required to make such a payment in XXXXX or XXXXX. However, since Petitioner's tax liability for the first quarter of XXXXX was in excess of $$$$$ such a prepayment was required of them for the period in question. In each of the preceding years when Petitioner had been required to make such a prepayment, the Petitioner had received proper prepayment returns from the Tax Commission. For the period in question, however, Petitioner alleges that no such return had been received from the Tax Commission, and therefore, the Petitioner did not file the prepayment return in a timely manner. Petitioner states that being an out of state corporation is disadvantageous in discovering what the Utah law is that governs the payment of sales and use tax.
4. Petitioner now asks for a waiver of the penalty and interest assessed for the late filing and payment of the taxes in question.
CONCLUSIONS OF LAW
1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalty and interest shall be charged for the late payment and filing of taxes.
2. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may, upon reasonable cause shown, waive or reduce penalties and interest assessed under the above statutes.
3. Such reasonable cause has been shown for a waiver of a portion of the penalty assessed in this case. Since Petitioner had not been required to make the prepayment in XXXXX or XXXXX, it is reasonable to assume that Petitioner was not put on notice as to the requirement of a prepayment in XXXXX, particularly since Petitioner alleges that it had not received the prepayment return. Such reasonable cause has not been shown, however, for waiver of the remainder of the penalty and interest in this case. A taxpayer, even though out of state, is expected under the law to be aware of the law and to proceed accordingly. If a taxpayer has not received sufficient information or has not received proper forms, then it is the taxpayer's obligation to obtain such information and forms before the deadlines are passed.
DECISION AND ORDER
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the penalties be reduced to $$$$$ and the Petitioner's request for waiver of interest be denied. Interest is hereby order to be recalculated based upon the reduced penalty assessment.
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