Signed 4/15/92





In Re:                            )    FINDINGS OF FACT,

                                  :    CONCLUSIONS OF LAW,

XXXXX                             )    AND FINAL DECISION


                                  )    Appeal No. 91‑1688

                                  :    Account No. XXXXX



                             STATEMENT OF CASE

          The formal hearing in this matter was scheduled for XXXXX. Petitioner waived its right to a formal hearing in its letter dated XXXXX.  Respondent did not appear.  This decision is based on the entire contents of the file as presently constituted on XXXXX.  Petitioner was represented by certified public accountant XXXXX.

          Based upon the evidence and information contained in the file, the Tax Commission hereby makes its:

                             FINDINGS OF FACT

          1.  The tax in question is sales and use tax.

          2.  The periods in question are the third and fourth quarters of XXXXX.

          3.  Petitioner filed and paid its third quarter XXXXX sales and use tax in the amount of $$$$$ nearly nine months late.  Two ten percent penalties plus interest were assessed.

          4.  Petitioner filed and paid its fourth quarter XXXXX sales and use tax in the amount of $$$$$ twenty‑seven days late.  One ten percent penalty plus interest was assessed.

          5.  Prior to the periods in question, Petitioner was never late in filing its return or paying its taxes.  During this time, Petitioner employed XXXXX, a certified public accountant, to handle its tax affairs.

          6.  At XXXXX direction, Petitioner set up a tax account wherein all tax funds were deposited and held until time for the quarterly payment.

          7.  XXXXX trained Petitioner's in‑house bookkeeper on the correct procedures.

          8.  Petitioner's bookkeeper then left Petitioner, leaving a store clerk to handle the tax returns and filings.

          9.  About this time, XXXXX died.

          10.  The store clerk tried to handle the taxes without XXXXX guidance.  He mistakenly believed that the monies deposited in the tax account were automatically paid out to the Tax Commission.

          11.  During the fourth quarter of XXXXX, Petitioner hired a new person to handle the taxes.  This employee was late in filing the fourth quarter return and taxes as she needed time to familiarize herself with Petitioner's books.

          12.  Petitioner did not learn of the store clerk's error in handling the third quarter XXXXX taxes until a late notice was received from the Tax Commission.  This is why the third quarter return and payment were so late.

          13.  Petitioner has timely filed and paid its taxes since the period in question.

                            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 foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a reduction of the penalties associated with the periods in question to $$$$$.  Interest is not waived.  It is so ordered.

          DATED this 15 day of April, 1992.


R. H. Hansen                          Roger O. Tew

Chairman                              Commissioner


Joe B. Pacheco                        S. Blaine Willes

Commissioner                          Commissioner


NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review.  Utah Code Ann. ''63‑46b‑13(1), 63‑46b‑14(2)(a).