90-1104 - Sales

 

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

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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