BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
In Re: )
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
: AND FINAL
DECISION
: Appeal No.
91-0735
____________________________
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. The Petitioner, XXXXX, participated by
telephone.
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 fourth quarter
XXXXX through fourth quarter XXXXX.
3. Prior to the fourth quarter XXXXX, the
Petitioner had filed and paid his sales tax liability in a timely manner. When the fourth quarter XXXXX return came
due, the Petitioner had not yet received the necessary report form from the
Commission. He contacted Commission
staff, who advised him to mail his tax payment without the form. Commission staff further advised the
Petitioner that the report form would be mailed to him later. The Petitioner testifies he submitted
payment as instructed, and later completed and filed the report form.
Commission records indicate that payment was received in XXXXX but that the
report was filed in XXXXX.
4. The Petitioner continued to have difficulty
obtaining the necessary report forms during the first and second quarters of
XXXXX. As a consequence, those reports
were filed untimely. The Petitioner's
account also became confused with that of XXXXX, an independent venture in
which Petitioner was involved.
5. Throughout this period of time, the
Petitioner remained in contact with Tax Commission employees in an effort to
settle his tax liability. During late
XXXXX through XXXXX, he believed that the account had been brought current.
Thereafter, the Petitioner was again advised that additional tax was due,
together with penalty and interest.
6. The Petitioner's tax liability for the periods
in question, together with late filing and late payment penalties and
associated interest are set forth below:
Period Tax Penalty Interest
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
XXXXX $$$$$$$$$$$$$$$
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 has established that his sales tax account has been subject to
considerable confusion. It is difficult
to determine the initial cause of the difficulty. However, the Petitioner has made a good faith effort to comply
with the sales tax reporting and payment requirements. As evidenced by his persistence in
contacting Commission staff, by his record of compliance prior the periods in
question, and his record following that period.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the penalty associated with the
Petitioner's sales tax liability for the fourth quarter XXXXX through the
fourth quarter XXXXX. Petitioner's
request for waiver of penalty is therefore granted. Interest is not waived, but will be recomputed in accord with
this decision. It is so ordered.
DATED
this 17th day of October, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes*
Commissioner Commissioner