90-1061 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

XXXXX,

Petitioner, :

v. : INFORMAL DECISION

:

: Appeal No. 90-1061

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION, :

: Account No. XXXXX

Respondent. :

__________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission requesting a waiver of a penalty and interest assessment on Petitioner's first quarter XXXXX sales tax. Pursuant to Utah Code Ann. §63-46B-5(1)(b,j) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner states that the penalty and interest on this account were assessed because of a XXXXX difference between the amount paid by Petitioner and the amount actually due. Petitioner states that its calculator rounded the figure of the amount due to $$$$$ whereas the Tax Commission's computer rounded the figure to $$$$$.

Research into Tax Commission records indicates that the penalty and interest in this case was not charged for the XXXXX difference between the amount paid and the amount owed, but because the tax return and its accompanying payment were not filed until XXXXX, three days after the due date. Under the statute a $$$$$ penalty was assessed for the late filing of the return and another $$$$$ penalty was assessed for the late payment of the taxes. Accompanying interest was also assessed.

FINDINGS

Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for late filing and payment of taxes. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon reasonable cause shown waive or reduce the penalties and interest assessed under these statutes.

Such reasonable cause has been shown in this case. Both the sales tax return and the check which accompanied that return are dated XXXXX. A difference of three days under these circumstances is small and the penalty and interest should be waived.

DECISION AND ORDER

Based on the foregoing facts, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest is granted. It is so ordered.

DATED this 12 day of September,1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner