91-0917 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

___________________________

In Re: )

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-0917

____________________________

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 sales tax.

2. The period in question is XXXXX through XXXXX.

3. The Petitioner has a history of timely filing and payment of its sales tax liability, including the required prepayment of second quarter sales tax, which prepayment is due by June 15th each year.

4. With respect to the period in question, Petitioner was required to prepay its sales tax liability for XXXXX and XXXXX, by XXXXX. Due to an error on the part of its office staff, the prepayment was not made. Instead, the prepayment sales tax liability was included and paid with the Petitioner's regular second quarter filing. As a result of its failure to file and pay the sales tax prepayment, penalty of $$$$$ was assessed against the Petitioner, together with associated interest.

5. The Petitioner has recently been audited by the Commission's auditing division and has been found in compliance with the sales and use tax laws. No deficiency was assessed against Petitioner as a result of the audit.

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 record establishes that the Petitioner has previously complied with Utah sales and tax laws, including the annual prepayment due in XXXXX each year. The record also establishes that in addition to timely filing and payment of tax, the Petitioner has accurately reported its tax liability, as evidenced by the results of the recent audit. With respect to the period in question, the Petitioner's failure to file and pay its sales tax prepayment was due to an inadvertent error.

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 second quarter XXXXX. Interest is not waived, but will be recomputed in accordance with this decision. It is so ordered.

DATED this 17th day of October, 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