BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0686
: 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 by
telephone were XXXXX and 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 prepayment of sales
and use tax.
2. The period in question is the second quarter
of XXXXX.
3. The Petitioner is engaged in the XXXXX in
Utah. By virtue of Utah's Resource
Development Act (Utah Code Ann. §63-51-1 et seq.), the Petitioner enjoyed a
credit against future sales and use tax liability in the approximate amount of
$$$$$ as of XXXXX.
4. During the second quarter of XXXXX, the
Petitioner accrued sales and use tax liability of $$$$$.
5. The Petitioner failed to file a sales tax
prepayment return for XXXXX and XXXXX as required by Utah Code Ann.
§59-12-108. The Petitioner did not
believe it was required to do so in view of the fact that its credit at that
time was many times larger than its tax liability. The Petitioner explains that it had filed prepayment returns in
previous years under similar circumstances but had not believed such filings
were actually required.
6. Because the Petitioner did not file its
prepayment return for the period in question, Commission staff assessed penalty
in the amount of $$$$$ and interest of $$$$$ against it.
7. The Petitioner did file its regular
quarterly sales and use tax return for XXXXX in a timely fashion.
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
The
Petitioner's belief that it need not file a prepayment return for the period in
question was incorrect. However, under
the facts of this case, such a return would have been informational only
inasmuch as Petitioner had already satisfied its tax liability. For that same reason, interest charges
cannot properly be assessed against the Petitioner.
While
the Petitioner will be expected to file prepayment returns in the future, the
Commission finds reasonable cause has been shown to justify a waiver of the
penalty and interest associated with the Petitioner's sales tax liability for
the second quarter XXXXX. It is so
ordered.
DATED
this 12th day of November, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner