BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
: INFORMAL DECISION
: Appeal No. 90-2442
: 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 states that he did not receive the sales tax form in sufficient time for the timely payment of Petitioner's sales taxes for the tax year XXXXX. Petitioner pays sales taxes on a yearly basis. Petitioner states that he was informed of the late payment by letter from the Tax Commission, and upon calling the Tax Commission regarding this was told to pay the sales tax rate of XXXXX plus XXXXX per month interest and a $$$$$ penalty. Petitioner states that he complied with these instructions "adding in interest and the $$$$$ penalty" although Petitioner felt that the penalty and interest were unjustified because Petitioner states that the taxes would have been filed and paid timely if the tax form had been received. Petitioner states that an additional penalty has been now assessed, and Petitioner does not understand the reasons for this new penalty.
The penalty for late filing of sales tax is $$$$$ or XXXXX of the taxes due, whichever is greater, and the penalty for late payment of sales tax is an additional $$$$$ or XXXXX of the tax due, whichever is greater. (Utah Code Ann. §59-1-401). In this case, therefore, a $$$$$ penalty was assessed according to the law. Tax Commission records also show that a payment of only $$$$$ was received by the Tax Commission on XXXXX. Since the tax in question amounts to $$$$$ it is apparent that the payment did not include the full penalty or interest charges. This is why a penalty assessment is still outstanding on Petitioner's account. Therefore, no additional penalty has been assessed but merely the original penalty has not yet been paid.
By letter dated XXXXX, the Tax Commission reduced the penalty assessment to $$$$$. Interest has not been waived.
The non-receipt of sales tax forms is not sufficient cause under the law for failure to timely file and pay sales taxes. Whether or not a form is received, the sales tax is due and it is Petitioner's obligation to ensure that the sales taxes are timely filed and paid. If a taxpayer through his negligence, fails to timely file and pay, then penalty and interest charges are appropriate under the law.
DECISION AND ORDER
The Tax Commission finds sufficient cause does not exist to waive the penalty associated with the Petitioner's sales taxes for the tax year XXXXX. It is so ordered.
DATED this 18 day of January, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen