90-1432 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 90-1432

: 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 sales and use tax.

2. The period in question is the second quarter of XXXXX.

3. Petitioner states that Petitioner's new office manager, XXXXX, began her employment with Petitioner after the previous office manager left employment with Petitioner at the end of XXXXX. The previous office manager did not inform XXXXX of the necessity of making a prepayment for the period in question.

During this time Petitioner also installed a new computer system which caused Petitioner some difficulty in determining the proper tax amount for the period in question. However, according to Petitioner's testimony, the reason the prepayment was not made timely was because of XXXXX's lack of knowledge concerning the necessity for the prepayment, not the difficulty with the computer.

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

The facts show that the late filing and payment of the prepayment was caused by the negligence of Petitioner. Petitioner has been required to make this prepayment in prior years and was, therefore, aware that such a prepayment was required. Petitioner had the duty to inform its new office manager of that requirement.

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 quarter of XXXXX. It is so ordered.

DATED this 20 day of December, 1990.

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