BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 91-0837
: 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.
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 sales tax.
2. The period in question is XXXXX and XXXXX.
3. The Petitioner's sales tax liability for the first quarter of XXXXX exceeded $$$$$.
4. The Petitioner failed to prepay its sales and use tax liability for XXXXX and XXXXX. Instead, the Petitioner reported and paid such liability as part of its regular quarterly filing, which was submitted to the Tax Commission on XXXXX.
5. The Petitioner contends its staff was unaware of the prepayment requirement and had received no prepayment report forms from the Commission.
6. The Petitioner failed to prepay its sales and use tax liability for XXXXX and XXXXX in both XXXXX and XXXXX. It was consequently assessed penalty and interest for both of those years.
7. Due to its failure to prepay its sales and use tax liability for XXXXX and XXXXX, Commission staff assessed a penalty of $$$$$, together with associated interest.
CONCLUSIONS OF LAW
Certain taxpayers are required to make a prepayment of not less than 90% of their sales and use tax liability for the months of April and May of each year. The return and payment are due on or before June 15th of each year. Failure to make the required prepayment by June 15th will incur penalties as provided in Utah Code Ann. §§59-12-108 and59-1-401. (Utah State Tax Commission Administrative RuleR865-19S-87.)
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
At the outset, the Commission notes that the prepayment sales tax requirement is an unusual circumstance that arises only when certain conditions have been met. Nevertheless, the legislature by statute has mandated the prepayment requirement and has provided for penalties to be imposed for failure to comply with the statute.
Only under extraordinary circumstances will the Commission waive the penalties imposed for having failed to comply with the prepayment provisions. Such extraordinary circumstances do not exist in the present case. It appears that the Petitioner should have known of the prepayment requirement based upon its experience in previous years. Failure to receive prepayment report forms from the Tax Commission is insufficient to excuse Petitioner's non-payment, as such forms are available on request.
Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the penalty associated with the XXXXX and XXXXX sales tax prepayment. It is so ordered.
DATED this 15th day of July, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco S. Blaine Willes*