91-0060

Sales

Singed 9/17/91

BEFORE THE UTAH STATE TAX COMMISSION

__________________________

In Re: ) FINDINGS OF FACT,

) CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

) Appeal No. 91‑0060

) Account No. XXXXX

___________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Alan Hennebold, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, President. Present and representing the Respondent was XXXXX, Tax Compliance Agent.

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 through XXXXX.

3. The Tax Commission audited the Petitioner for compliance with Utah sales tax law for the period in question. As a result of that audit, an additional sales tax liability of $$$$$ was assessed against Petitioner, plus a 10% penalty in the amount of $$$$$, and associated interest. The assessment of additional tax arose primarily from Petitioner's failure to collect sales tax in three separate transactions.

The first such transaction involved an individual who advised Petitioner he had retired and lived in XXXXX. He presented a XXXXX driver's license. However, at the time of the transaction, he was still employed in Utah. The second, involved a serviceman stationed in Utah, who advised Petitioner he was here on a short term assignment and was a resident of XXXXX. In fact, he had served a long‑term assignment in Utah. The final incident involved an individual claiming Oregon residency with an Oregon driver's license, but who owned property in Utah.

4. The Petitioner contends that in each of the foregoing instances, it relied upon information provided by the customers. Apart from the deficiency now under consideration, the Petitioner has properly filed and paid its sales tax liability. Audit Division staff advise the Petitioner was cooperative in the audit. The Petitioner has undertaken procedures to prevent recurrence of the problems which led to the audit deficiency.

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

In the present case, it appears that the Petitioner's failure to properly collect sales tax was largely due to incorrect or incomplete information provided by customers. The Commission finds that such circumstances constitute sufficient cause to waive the penalty associated with the Petitioner's sale tax liability for the period in question. Interest is not waived but will be recomputed in accordance with this decision. It is so ordered.

DATED this 17th day of September, 1991.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes*

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).

*Since the hearing on this case, Commissioner G. Blaine Davis has been replaced by S. Blaine Willes. Commissioner Willes has been duly advised of the facts and circumstances regarding this case, and is qualified to sign this decision.

^^