BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
:
: Appeal No.
90-2421
: 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, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
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 sales tax.
2. The period in question is XXXXX.
3. During the period in question, the
Petitioner purchased a new XXXXX from XXXXX for use in Petitioner's business in
XXXXX. The vehicle was not used in Utah
except to drive it to the borders of the state, and since its purchase it has
been used exclusively in XXXXX for Petitioner's business activities. Petitioner, therefore, licensed the vehicle
in XXXXX.
4. At the time of the purchase, Petitioner
signed a nonresident affidavit under the assumption that the Utah sales tax
would not be due since the truck was to be used solely in XXXXX. Petitioner admitted that he is a resident of
the state of Utah and now acknowledges that the tax was properly due to the
state of Utah.
5. Petitioner stated that at the time he signed
the nonresident affidavit, he also signed several other documents in connection
with the purchase of the vehicle in question and, therefore, did not pay any
particular attention to the nonresident affidavit. Petitioner states that he was not cognizant of the fact that Utah
sales tax should be paid on the purchase of the vehicle in question, and that
he was not fully aware of the provisions of the nonresident affidavit when he
signed that document.
6. Petitioner contests the XXXXX penalty for
intent to evade the tax which has been assessed in this case. Petitioner contests that he did not have any
intent to evade the tax but was merely negligent in operating under the
misperception that no sales tax would be due in Utah. Petitioner, therefore, requests that the penalty be lowered to a
negligence 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
The
Tax Commission finds that a XXXXX negligence penalty is appropriate in this
case. The evidence shows that
Petitioner did not have any intent to evade the tax in question, but was
negligent in failing to be properly attentive to the provisions of the
nonresident affidavit when he signed the affidavit.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown to justify a reduction of the penalty associated with the month of XXXXX
from the XXXXX penalty down to a XXXXX negligence penalty. Interest shall be
adjusted to account for the reduction of the penalty. It is so ordered.
DATED
this 10TH day of AUGUST, 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