91-0057

Sales

Signed 4/12/91

BEFORE THE UTAH STATE TAX COMMISSION

_________________________

In Re: ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

) Appeal No. 91‑0057

) Account No. XXXXX

__________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal telephone 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 fourth quarter of XXXXX.

3. The period in question is the first period during which Petitioner was in business. Petitioner's owner is from XXXXX and its employees are likewise from out of the country. Petitioner's owner does not have a good command of the English language and has a difficult time understanding the tax laws in the United States. Petitioner's representative at the hearing was not sure whether Petitioner had received instructions at the time it had obtained its sales tax license, as to the proper manner and time in which to file and pay taxes, but that if such instructions were received by Petitioner's owner, he probably did not understand them because of the language barrier.

5. A Notice of Failure to File Taxes was sent to Petitioner, dated XXXXX. A Notice of Warrant and Demand for Payment of Taxes was mailed to Petitioner and was dated XXXXX. Petitioner did not pay the tax liability in question until XXXXX. Petitioner's representative stated that this is probably also due to Petitioner's poor command of the English language and lack of understanding regarding tax laws, and that if Petitioner received the notices sent to him, he did not understand them.

6. By letter dated XXXXX, the original $$$$$ penalty was reduced to $$$$$ by the Tax Commission.

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 circumstances of this case have already been taken into account by the reduction in the penalty amount. A waiver of the remaining portion of the penalty is not appropriate. Even with the language barrier and Petitioner's lack of understanding regarding tax laws, a taxpayer is under a duty to become sufficiently aware of tax requirements or to consult with competent advisers, so that the taxpayer can ensure the timely filing and payment of taxes. Interest should also not be waived because the state was 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.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the remaining penalty and interest associated with the fourth quarter of XXXXX. It is so ordered.

DATED this 12th day of April, 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

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63‑46b‑13(1), 63‑46b‑14(2)(a).

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