91-0731 - Sales




In Re: :


: Appeal No. 91-0731

: Account No. XXXXX



This matter came before the Utah State Tax Commission upon a Petition for Reconsideration, dated XXXXX, filed by the Petitioner as a result of the Commission's final decision, dated XXXXX.


1. Utah Administrative Rule R861-1A-5(P) provides that a Petition for Reconsideration "will allege as grounds for reconsideration either a mistake in law or fact, or the discovery of new evidence." Under this rule, the Tax Commission may exercise its discretion in granting or denying a Petition for Reconsideration.

2. Petitioner alleges the reconsideration should be granted because he never received any notification that the penalties were going to be imposed prior to the actual imposition of the penalties. However, the law requires taxpayers to timely pay the taxes due, and all taxpayers are on notice that if they do not timely pay those taxes a penalty will be imposed. Petitioner, in his earlier letter, acknowledged that he was aware that the sales tax returns were due quarterly, but failed to timely file and also failed to timely pay those taxes just because he thought there would be no penalty.

3. Petitioner further alleges that the $$$$$ penalty is out of line with the tax owed of $$$$$, so that it represents a total of 75% of the amount owed. However, the law imposes a minimum penalty of $$$$$ for late filing and a minimum penalty of $$$$$ for late payment. Petitioner was subject to both penalties.

4. Petitioner further urges that the reconsideration be granted because he responded promptly once he received notices that the penalty and interest had been imposed. However, regardless of how promptly he responded, the penalty had already been imposed when he responded. Further, one of the reasons the penalty is imposed is to partially reimburse the Commission for the expenses of having persons take the time and effort to make special contact with persons who have not filed or paid their tax returns. These expenses had already been incurred by the Commission.

5. Petitioner alleges other reasons, all of which do not state a mistake in law or fact or a discovery of new evidence.


Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that the Petition for Reconsideration is denied. It is so ordered.

DATED this 6 day of December, 1991.