BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1602
: Account
No. XXXXX
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Paul F. Iwasaki, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were
XXXXX and 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 prepayment sales tax.
2. The period in question is XXXXX and XXXXX.
3. The Petitioner's representative, who is the
company president, indicated that they were not aware of the prepayment
requirement, nor the threshold levels which qualified them for such treatment.
4. The Petitioner became aware of the
prepayment requirement when they received notice that they had not made the
prepayment of sales tax for XXXXX. That
notice was received after the XXXXX prepayment was due, and the second quarter
sales tax had been paid.
5. The Petitioner requested waiver of the
penalty for the XXXXX sales tax prepayment. That penalty was waived by subsequent Commission action. The Petitioner now requests waiver of the
XXXXX sales tax prepayment penalty.
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
At
the outset, the Commission notes that the prepayment sales tax requirement is
an unusual circumstance that arises only when certain conditions have been
met. Nevertheless, the Legislature has
presented such a requirement as well as penalties for failure to comply with
the statute.
Only
in extraordinary cases will the Commission waive the penalties imposed for
having failed to comply with the prepayment provisions. Such extraordinary circumstances do not
exist in the present case.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the XXXXX and
XXXXX sales tax prepayment. It is so
ordered.
DATED
this 15th day of January, 1991.
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