BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 90-2327
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. No hearing was requested, therefore, this decision is based upon information contained in the Tax Commission's file.
Petitioner maintains that a human oversight on Petitioner's part resulted in Petitioner's sales tax being remitted one week late for the first quarter of XXXXX. Tax Commission records show that the return and payment were received by the Tax Commission on XXXXX.
Petitioner expresses some frustration with the assessment of penalty in this case and is apparently of the opinion that since the return and payment were late due to human oversight, the penalty should be waived. Petitioner states that the Tax Commission regards Petitioner as "criminals" because of such late payment.
The penalties assessed against Petitioner are not criminal penalties. They are merely negligence penalties required by law for late filing and payment of sales taxes. The legislature enacted such penalties not so much as a punishment but as an incentive for taxpayers to not be negligent in the timely filing and payment of their sales tax. Petitioner admits to its negligence and, therefore, the penalty applies under the law. Additionally, the interest assessment separate from the penalty is assessed in such cases because the state has been deprived of the use of the tax funds in question for a period of time through no fault of its own and should be compensated for that loss of use.
DECISION AND ORDER
The Tax Commission finds sufficient cause does not exist to waive the penalty associated with the first quarter XXXXX sales tax. It is so ordered.
DATED this 18 day of January, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis