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.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis