BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1104
: Account
No. XXXXX
________________________________
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.
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 tax.
2.
The periods in question are the second, third, and fourth quarters of XXXXX.
3.
At the hearing, Petitioner was under the impression that this case also
involved the second quarter of XXXXX.
However, Tax Commission records indicate that the penalty assessed for
that quarter has already been waived by the Commission.
4.
Petitioner is a subsidiary of XXXXX.
During the periods in question, XXXXX initiate the merger of XXXXX
additional corporations into Petitioner's operational responsibilities.
Petitioner's size was doubled, which necessitated the establishment of a tax
department in order to manage Petitioner's increased tax compliance
responsibilities. During the
establishment of the tax department, Petitioner states that it lost control of
the situation and that Petitioner's tax manager at the time did not possess the
necessary organizational skills to properly manage the department. Petitioner cites a good previous and
subsequent record in the timely filing and payment of sales taxes, and requests
a waiver of the penalties and interest.
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
Sufficient
consideration has already been given to the difficulties under which Petitioner
operated by the waiver of the penalty for the second quarter of XXXXX. Petitioner is responsible for the timely
filing and payment of its sales taxes.
Although Petitioner was overwhelmed by its organizational changes during
the period in question, Petitioner was negligent in failing to make the sales
tax payments for the periods in question in a timely manner and the negligence
penalties and assessment of interest are appropriate.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty and interest associated with
the second, third, and fourth quarters of XXXXX. It is so ordered.
DATED
this 15 day of February, 1991.
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