BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0680
: 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 of 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 periods in question are the second and
third quarters of XXXXX.
3. Except for the two periods in question,
Petitioner has reported and paid its quarterly sales tax liability in a timely
manner.
4. With respect to the second quarter of XXXXX,
Petitioner's prepayment of its sales tax liability for XXXXX and XXXXX was due
by XXXXX. As of XXXXX, Petitioner had
not received a prepayment report form. Petitioner called Commission staff to
request the report form and was told it would be mailed. By XXXXX, Petitioner had not received the
form, and again called Commission staff.
Petitioner was again told the form would be mailed. Some time later,
Petitioner received a standard quarterly report form, instead of a prepayment
form. Petitioner completed the form by
reporting its tax liability for the entire second quarter of XXXXX, then
submitted it with full payment on XXXXX.
5. Interest and a 10% penalty in the amount of
$$$$$ were assessed against Petitioner with respect to its second quarter XXXXX
prepayment.
6. Petitioner's third quarter XXXXX sales tax
report was due by XXXXX. Petitioner did
not receive a report form for that quarter until the due date. Petitioner called Commission staff and was
told to complete and mail the report.
Petitioner was told it would receive a short "grace period"
for filing and payment of the report.
The report with full payment was received by the Commission on XXXXX.
7. Interest and a 10% penalty of $$$$$ were assessed
against Petitioner with respect to its third quarter XXXXX payment.
8. Petitioner had sufficient funds available to
pay its second quarter prepayment and its third quarter sales tax liability
when due. Petitioner could have made payment without waiting for the report
forms, if such action had been requested by Commission staff.
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
Petitioner
asks the Commission to waive penalties imposed with respect to Petitioner's
second quarter XXXXX sales tax prepayment and third quarter XXXXX sales tax
liability.
Petitioner
has established a record of timely filing and payment of its sales tax
returns. With respect to the periods in
question, it appears that Petitioner made a good faith effort to file and pay
its sales tax liabilities, but was hampered by lack of necessary forms. Petitioner then made reasonable efforts to
obtain such forms, including direct contact with Commission staff. Petitioner
complied with the instructions it received from Commission staff.
Petitioner's
third quarter XXXXX liability was paid within a few days of the normal filing
deadline; its second quarter prepayment liability was paid before the end of
the quarterly filing deadline.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with Petitioner's
sales tax liability for the second quarter prepayment and the third
quarter of XXXXX. Interest charges are not waived, but will be recomputed in
accordance with this decision. It is so
ordered.
DATED
this 6th day of August, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner