BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No.
91-0679
: Account
No. XXXXX
: Tax Type:
Penalty/Int.
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah 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 were XXXXX, Audit Supervisor,
and XXXXX, Analyst.
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. For the period in question, the Petitioner accrued
sales tax liability to the State of Utah in the sum of $$$$$. It filed its return establishing such
liability on XXXXX. The Petitioner had
previously paid the amount of its sales tax liability for that quarter on
XXXXX.
4. Utah law requires partial prepayment of the
sales tax liability for XXXXX and XXXXX of each year, such prepayment to be
made no later than XXXXX. The
Petitioner failed to make the foregoing prepayment for the period in question
as a result of a programming error in its automated sales tax program.
5. Due to Petitioner's failure to make the
required prepayment, the Commission's Collection Division assessed Petitioner a
penalty of 10% of the unpaid tax, in the sum of $$$$$, plus associated
interest.
6. The Petitioner files sales, use and property
tax returns in 600 different state and local jurisdictions throughout the
United States. Apart from the incident
now under consideration, the Petitioner has filed and paid its sales tax liability
in a timely manner.
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
Utah
Code Ann. §59-1-401(3)(a) provides a penalty of 10% of the tax due for failure
to prepay sales tax for XXXXX and XXXXX of each year. Except for the incident in question, the Petitioner has filed and
paid its sales tax liability in a timely manner. Its failure to do so during XXXXX was due to an error, since
corrected, in its automated sales tax reporting system. Based on the foregoing, the Commission finds
that sufficient cause has been shown which would justify a waiver of the
penalty associated with the prepayment of Petitioner's sales tax liability for
XXXXX and XXXXX. As the Petitioner has
previously paid the penalty assessment, that amount will be refunded. Interest is not waived. It is so ordered.
DATED
this 17 day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
ABSENT
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner