BEFORE THE UTAH STATE TAX
COMMISSION
_______________________________
In Re: ) FINDINGS
OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal
Nos. 90-1420 and
: 90-1421
: Account
Nos. XXXXX and
: 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 taxes in question are sales tax and withholding tax.
2.
The periods in question for the sales tax account are the second quarters of
XXXXX, XXXXX, and XXXXX. The period in
question for the withholding tax account is the fourth quarter of XXXXX.
3.
At the hearing, Petitioner's representative, XXXXX, stated that Petitioner did
not desire to appeal the penalty and interest for the withholding tax account
for the fourth quarter of XXXXX, but only wished to appeal the penalties and
interest for the sales tax account.
4.
Petitioner submitted a waiver request form for the second quarter of XXXXX, but
has not submitted a waiver request form for the other periods in question. Petitioner requested that one single
decision, however, dispose of the penalty and interest question for all three
quarters without the necessity of having to file additional waiver request
forms for the other quarters in question.
Petitioner did not file a waiver request form for the second quarter of
XXXXX, because when he filed the form for the second quarter of XXXXX, he was
not aware that there was a problem with the second quarter of XXXXX. Petitioner has not yet had the opportunity
to file a waiver request form for the second quarter of XXXXX.
5.
The penalty and interest amounts in question are as follows: For the second
quarter of XXXXX, penalty is $$$$$ and interest is $$$$$; for the second
quarter of XXXXX, penalty was $$$$$, but this penalty was waived as indicated
by a XXXXX letter from the Tax Commission to Petitioner, and $$$$$ interest;
for the second quarter of XXXXX, penalty is $$$$$ and interest is $$$$$.
6.
The second quarter of XXXXX was the first time Petitioner was required to make
the sales tax prepayment. Petitioner
contends that it received no notice of the requirement to pay the tax for any
of the periods in question, and did not receive the requisite forms to make the
prepayment. When the second quarter
XXXXX prepayment became due, Petitioner was still unaware of the prepayment
requirement, not having yet been informed of any difficulty with the second
quarter of XXXXX.
7.
For the second quarter of XXXXX, Petitioner had become aware of the prepayment
requirement but did not receive the appropriate form to make the prepayment
and, consequently, called Tax Commission offices prior to the prepayment
deadline and requested that the form be sent.
Upon receiving the form, Petitioner completed it and made the
prepayment, which was received by the Tax Commission on XXXXX, six days after
the deadline.
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
Since
Petitioner was unaware of the prepayment requirement for both the second
quarters of XXXXX and XXXXX, a waiver of the penalty for the XXXXX period
already having been granted, such a waiver for the XXXXX period is also
appropriate. For the second quarter of
XXXXX, Petitioner did attempt to make the prepayment in a timely manner by
contacting Tax Commission offices and requesting the forms necessary to make
the prepayment, Petitioner made that payment as soon as possible after
receiving the form, and the prepayment was made within one week of the due
date. This indicates that a waiver of
the penalty for the second quarter of XXXXX is appropriate. Interest for all of the periods in question,
however, should not be waived since the state was deprived of the tax funds in
question for a period of time and should be compensated for that loss of use.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with the second
quarters of XXXXX and XXXXX. Interest
shall be adjusted to account for the waiver of the penalty amounts. Appeal 90-1421 concerning the withholding
tax account, number XXXXX, is dismissed per Petitioner's request to withdraw
that appeal. It is so ordered.
DATED
this 12 day of February, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner