BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 90-1658
: 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, considered the matter for and on behalf of the Commission. Representing the Petitioner was XXXXX, C.P.A. XXXXX, in a telephone conversation with personnel from the Appeals Division of the Utah State Tax Commission prior to the hearing, indicated that Petitioner desired the case to be decided on the documents in the file without the necessity of a personal appearance by the Petitioner or his representative.
Based upon the evidence in the file and presented by Petitioner, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The period in question is the first quarter of XXXXX.
3. In XXXXX, petitioner began working with Tax Commission employees to bring current Petitioner's delinquent sales tax obligations. A payment schedule was established and Petitioner paid $$$$$ per month for the next few months, while at the same time keeping current on Petitioner's sales tax obligations as they came due. Eventually Petitioner made what Petitioner thought was the final payment and was told by the Tax Commission person with whom Petitioner was working that everything had been paid and that there would be no further obligation on the part of Petitioner for the past due taxes.
4. Approximately three months later, Petitioner received a notice from the Tax Commission indicating that additional amounts were owed. Petitioner contacted the person with whom they had worked at the Tax Commission, who after investigation informed the Petitioner that she had made a mistake inasmuch as one quarter, i.e., the period in question, had still not been paid. Petitioner paid the taxes immediately.
5. By letter dated XXXXX, the Tax Commission has waived all penalties in this case, but not interest amounts. Petitioner requests that since a mistake had been made by a Tax Commission employee, the interest portion should be waived as well.
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 mistake by the Tax Commission employee involved in this case did not cause Petitioner to pay late the sales tax for the period in question. The mistake only related to the completion of Petitioner's payment schedule. Therefore, sufficient consideration has already been given to the circumstances in this case by the waiver of the penalty by the Commission. A further waiver of the interest is not appropriate since the state was deprived of the tax funds in question for a period of time and should be compensated for the loss of use of the money.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the first quarter of XXXXX. It is so ordered.
DATED this 2 day of April, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis