BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL DECISION
: Appeal No. 90-1407
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION, :
: Account No. XXXXX
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.
This case allegedly involves some mailing problems. Petitioner states that it timely mailed the tax return and its accompanying payment for both sales and withholding tax, but for some reason the envelope was double canceled, first with the date Petitioner alleges it was mailed, and second, with the XXXXX date which would have rendered the filing of the tax untimely. By letter dated XXXXX, the Tax Commission waived all penalties for Petitioner's withholding taxes under the same circumstances as exist in this case concerning the sales taxes. By letter dated XXXXX, the Tax Commission reduced the penalty on the sales tax by $$$$$ down to $$$$$. Petitioner now questions why, under the same circumstances, the penalty for the withholding was waived but not for the sales tax.
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. The time period between the due date and the actual filing date is small and to be consistent with the waiver for the withholding tax under the same circumstances, the penalty for the sales tax 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 is granted along with any interest amounts assessed relative to the penalty amounts. It is so ordered.
DATED this 12th day of September, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis