91-1370 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_________________________________

In Re: )

:

XXXXX ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

: AND FINAL DECISION

: Appeal No. 91-1370

_________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. G. Blaine Davis, Administrative Law Judge, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner on the telephone was XXXXX, Vice President/Finance and Treasurer, for the company.

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 the fourth quarter of XXXXX.

3. In late XXXXX, the lady who was in charge of the XXXXX for the company left her employment and there was no one else in the company with sufficient knowledge to extract from the computer the information which was necessary to file the return.

4. In early XXXXX, the company attempted to retrieve the year end information necessary to file the fourth quarter sales tax return, together with numerous other year end activities, but they were unable to accomplish it.

5. When they were unable to retrieve the information, they retained a consultant to come in and help them recovery the information.

6. Even with the numerous problems retrieving the information, the return was filed within XXXXX days of the due date.

7. Although the information received with the original waiver request worksheet indicated that there may have been other late filings, the computer printout does not indicate any other late filings going back as far as XXXXX.

8. Petitioner acknowledges that the return was a few days late, and further acknowledges a willingness to pay the interest on the money for the time after the due date until the money was paid, but requests that the penalty be waived because they were putting forth a good faith effort and were doing everything within their abilities to try to file the return timely.

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

Based upon the relatively short delinquency and the efforts put forth by the Petitioner to try to file the return timely, and the unusual circumstance of the person in charge of that department resigning just prior to the end of the period, the penalty should be waived.

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 fourth quarter of XXXXX, but the interest should not be waived. It is so ordered.

DATED this 6th day of December, 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