91-0084 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

: Appeal No. 91-0084

: Account No. XXXXX

___________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission on XXXXX. Alan Hennebold, Presiding Officer, heard the matter for and on behalf of the Commission. The Petitioner waived its right to a hearing and asked that a decision be made on the basis of the documentary record.

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.

3. At all times material to this case, Petitioner was a XXXXX corporation, with headquarters in XXXXX, but also operating a terminal in Utah. During XXXXX, Petitioner purchased three vehicles in Utah from XXXXX. One of Petitioner's agents signed a nonresident affidavit stating that the Petitioner did not do business in Utah and that the trucks would not be used in Utah. Based upon the representations of the Petitioner's agent as set forth on the nonresident affidavit, no sales tax was collected on the transaction.

An audit by the staff of the Utah State Tax Commission resulted in imposition of sales tax liability of $$$$$ against the Petitioner, together with a 15% penalty of $$$$$ and interest of $$$$$, for a total liability of $$$$$.

Immediately upon being advised of the audit results, the Petitioner paid the amount of the tax liability and filed a request for waiver of penalty and interest. Because the waiver request was pending, the Petitioner did not submit payment of the assessed penalty and interest by the due date established in the audit. As a result, an additional late payment penalty of $XXXXX has been assessed against the Petitioner.

The Petitioner contends its agent relied upon XXXXX for guidance in the transaction in question and would not have purchased the vehicles had it known the transaction was subject to sales tax in Utah.

CONCLUSIONS OF LAW

Utah law imposes a 15% penalty for underpayment of tax due to intentional disregard of law or rule. Utah law also imposes a penalty of either $50 of 10% of the tax, whichever is larger, for late payment of tax. (Utah Code Ann. 59-1-401.)

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 Petitioner admits that its agent signed a nonresident affidavit which contained incorrect information regarding the Petitioner's activities and status in Utah. It is the Petitioner's responsibility to accurately complete such nonresident affidavits.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify waiver of the initial penalty of $$$$$ assessed against Petitioner. However, reasonable cause does exist to waive the late payment penalty of $$$$$. Interest is not waived, but will be recomputed in accordance with this decision. It is so ordered.

DATED this 12th day of June, 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