BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 89-2622
UTAH STATE TAX COMMISSION, : Account
No. XXXXX
Respondent. :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal telephone hearing
on XXXXX. Joseph G. Linford, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX. Respondent was not represented
at the hearing.
Based
upon the evidence and testimony presented at the hearing, 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 prepayment of its sales and use tax for the
period in question but did not do so in a timely manner. This also occurred for the same quarter in
the years XXXXX and XXXXX, and for both of those years the Commission granted a
waiver of the penalty. In the
Commission's letter dated XXXXX, which waived the penalty for the second
quarter of XXXXX, the following paragraph is included:
XXXXX will be liable for making
timely pre-payments on the XXXXX quarter of sales tax in the future.
4.
Petitioner feels that since the above provision was in the letter dated XXXXX,
which is well beyond the due date for the prepayment for the second quarter of
XXXXX, Petitioner should not be held to that "agreement" for the
period in question. Petitioner
therefore, requests that penalty in this case be waived.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann.
§59-1-401(8).)
DECISION AND ORDER
Reasonable
cause has not been shown for waiver of the penalty in this case. By this time, the Petitioner should have
been well aware of the requirement to pay the prepayment and should have been
complying with that requirement. This
is a requirement of the law independent of any so called "agreement"
which might have postdated the due date for the prepayment for the period in
question. Petitioner knew or should
have known of this requirement with or without any "agreement" stated
in the XXXXX, letter. It should also be
noted that this "agreement" was not so much an agreement as a
reiteration by the Tax Commission of the requirement for the Petitioner to make
the prepayment as required by law.
Based
upon the foregoing, it is the decision and order of the Utah State Tax
Commission that Petitioner's request for waiver of penalty is denied.
DATED
this 20th day of August, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner