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
Joe B. Pacheco S. Blaine Willes