BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-2457
: 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 the tax year
XXXXX.
3. Petitioner files and pays its sales taxes on
a yearly basis. In XXXXX, the year
preceding the period in question, Petitioner began its business and when it
came time to pay sales tax for the year XXXXX, Petitioner made the payment late
because Petitioner did not receive a form from the Tax Commission. When XXXXX,
Petitioner's owner, called the Tax Commission relative to this problem, she
asked XXXXX, the Tax Commission employee, what Petitioner's actual yearly
filing due date is. He apparently
misunderstood her question, and answered her by saying that if she sent in her
payment by XXXXX, the state would deduct $$$$$ of the penalty which had been
assessed for the year XXXXX. XXXXX
misunderstood this, thinking that her tax returns were due by XXXXX of each
year, instead of the actual XXXXX due date.
4. For the year in question, Petitioner mailed
the sales tax amount to the Tax Commission on XXXXX and it was received by the
Tax Commission on XXXXX. Petitioner
thought that it was paying the tax early under the misperception that the due
date was XXXXX.
5. Petitioner was not aware of any difficulty
with the period in question until XXXXX, more than a year after Petitioner
filed and paid the sales taxes for the year in question, when Petitioner
received a notice from the Tax Commission which notified XXXXX of the penalty
and interest charges.
6. Petitioner has now paid the tax amount plus
the interest that had accrued through XXXXX.
7. Petitioner requests that the penalty assessment
be waived in this case due to: (1) the misunderstanding between Petitioner and
XXXXX of the Tax Commission; (2) the relatively small amount of tax involved
($$$$$); and (3) the Commission's lateness in informing XXXXX of the
difficulties with the period in question.
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
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty and corresponding interest
associated with the tax year XXXXX.
Petitioner has already paid the interest that had accrued up to the time
of payment, and the only interest remaining would be the interest imposed on
the penalty amount. Since the penalty is waived along with the interest
corresponding to the penalty, Petitioner's account balance for the tax year
XXXXX should now be zero. It is so ordered.
DATED
this 20 day of February, 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