BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
: ORDER
XXXXX )
: Appeal No.
90-1531
:
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission upon a Petition for
Reconsideration, XXXXX, filed by the Petitioner as a result of the Commission's
final decision, dated XXXXX.
FINDINGS
1. Utah Administrative Rule R861-1A-5(P)
provides that a Petition for Reconsideration "will allege as grounds for
reconsideration either a mistake in law or fact, or the discovery of new
evidence." Under this rule, the
Tax Commission may exercise its discretion in granting or denying a Petition
for Reconsideration.
2. The Petition for Reconsideration contends
that in the absence of a willful failure on the part of the Petitioner to file
and pay the taxes in question in a timely manner, and because of the subsequent
payment of the tax amounts in question, "the penalties are reasonably
subject to compromise from the statutory maximums." The Petition states that Petitioner has in
the past promptly filed and paid its taxes and that the policy of the law with
respect to penalties does not exist in this case for the full amount of
penalty.
3. The penalty which has been imposed upon
Petitioner is a negligence penalty and does not require a willful failure to
timely file and pay taxes. It only
requires that the taxpayer be negligent in not timely filing and paying its
taxes. Such negligence is amply shown
in this case. The fact that Petitioner
subsequently paid the tax liability is irrelevant. The liability was properly due and Petitioner was required to pay
it. The fact that Petitioner has filed
and paid taxes timely in the past is insufficient by itself to indicate that a
waiver should be granted. Contrary to
Petitioner's assertion, the policy of the law regarding penalties does exist in
this case for the imposition of the full penalty amount.
DECISION AND ORDER
Based
upon the foregoing, it is the decision and order of the Utah State Tax
Commission that the Petition for Reconsideration is denied. It is so ordered.
DATED
this 28th day of March, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.