92-1086 - Sales & Use

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

:

: Appeal No. 92-1086

: Account No. XXXXX

_____________________________________

STATEMENT OF CASE

Petitioner waived the right to a formal hearing in this matter. This decision is based on the entire contents of the file as presently constituted as of XXXXX.

Based upon the contents of the file, the Tax Commission hereby makes its:

FINDINGS OF FACT

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

2. The audit period in question is XXXXX through XXXXX.

3. Petitioner sells construction hardware, i.e., staples, nails, construction connectors, etc.

4. In XXXXX, Petitioner, located in XXXXX, began doing business. About this time, Petitioner also sold items out of state, in Utah.

5. Petitioner collected Utah sales tax during the period in question, but never remitted the tax.

6. According to the owner of the business, XXXXX, Petitioner's accountant appeared to be handling the payroll and taxes without any problems.

7. At all times, Petitioner properly remitted its XXXXX sales tax. XXXXX had no idea that the accountant had not been remitting Utah sales tax.

8. As a result of the audit, Petitioner was assessed over $$$$$ in sales tax, a 70% penalty and interest.

9. The Tax Commission later reduced the penalty to 30% which includes a 10% late filing penalty, a 10% late payment penalty and a 10% negligence penalty.

10. Petitioner is requesting a waiver of the remaining penalties.

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 penalty to 20% on the sales and use tax for the period in question. Interest is not waived. It is so ordered.

DATED this 8th day of September, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco S. Blaine Willes

Commissioner Commissioner