BEFORE THE UTAH STATE TAX
COMMISSION
______________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1118
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal 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 special fuel tax.
2.
The period in question is the audit period XXXXX through XXXXX.
3.
On XXXXX, Petitioner purchased XXXXX.
This purchase included fuel storage tanks for diesel and propane
fuel. Petitioner then began to purchase
these fuels from local wholesale distributors.
Petitioner states that it was never asked by these distributors to furnish
a special fuel user permit number.
Petitioner was unaware it was responsible for paying this tax and was
under the assumption it was paying taxes to the companies who were selling it
the fuel. Petitioner discovered the
error in early XXXXX when it received a letter from XXXXX, asking Petitioner to
supply XXXXX with a special fuel user number.
Upon realizing that such a permit was needed, Petitioner immediately
applied for the same, and has since paid the tax on a timely basis.
4.
During the audit, Petitioner was informed that a special propane exemption
sticker which would relieve Petitioner of the payment of tax on propane was
available. Petitioner immediately
purchased these stickers for XXXXX.
Before
this time it had not been aware that such an exemption sticker was
available. Petitioner states that part
of the penalty assessed in this case is assessed on tax for the propane which
it would not have had to pay if it had been aware of the exemption stickers.
5.
Based upon the foregoing, Petitioner requests that the penalty and interest
imposed 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
It
is the Petitioner's responsibility in all cases to be aware of taxes owed and
to be aware of exemptions to those taxes.
Petitioner operated on assumptions in this case and apparently made
little or no effort to adequately research tax requirements relative to its
operations.
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 period XXXXX to XXXXX. It is so
ordered.
DATED
this 6 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