90-1602 - Sales

 

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

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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