BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1600
: Account
No. XXXXX
___________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, Presiding
Officer, heard the matter for and on behalf of the Commission. XXXXX, Petitioner's tax supervisor,
participated by telephone.
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 use tax.
2. The period in question is XXXXX through
XXXXX.
3. The Commission's staff audited Petitioner
for compliance with Utah sales and use tax law for the period in question. The audit assessed Petitioner with an
additional tax liability of $$$$$, plus associated interest and a XXXXX
penalty.
4. Petitioner operates XXXXX at various
national parks and monuments in Utah.
It also operates convenience stores at those locations. Among other items, the convenience stores
sell XXXXX products to the public. The
audit disclosed that Petitioner had neglected to pay use tax on XXXXX products
withdrawn from inventory and used in Petitioner's own operations. Petitioner does not contest the audit's
findings.
5. The additional tax imposed by the audit
represents less than XXXXX of Petitioner's total sales and use tax liability
for the period in question. Apart from the present matter, Petitioner has
properly reported and paid its use tax liability.
CONCLUSIONS OF LAW
Utah
law authorizes imposition of a XXXXX penalty for negligent underpayment of
tax. (Utah Code Ann. §59-1-401(3).)
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
Petitioner admits it failed to pay use tax on paper products which were
withdrawn from inventory, then consumed in Petitioner's operations. It has now paid such tax and associated
interest.
Petitioner's
failure to report and pay the use tax required under these circumstances is
mitigated by its history of compliance with the sales and use tax laws, and
also by the small size of Petitioner's error.
The error amounted to less than XXXXX of Petitioner's total sales and
use tax liability for the audit period.
Based
on the foregoing considerations, the Commission finds reasonable cause to waive
the penalty imposed against the Petitioner.
Interest charges are not waived.
It is so ordered.
DATED
this 13th day of May, 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