91-0735 - Sales

 

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