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
Joe B. Pacheco S. Blaine Willes