BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-1504
: Account No
XXXXX
__________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Lisa L. Olpin, Presiding
Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was
XXXXX, owner. Present and representing
the Auditing Division was XXXXX, Assistant Utah Attorney General.
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 special fuel tax.
2. The period in question is April XXXXX
through December XXXXX.
3. XXXXX, an attorney, purchased XXXXX in XXXXX
upon moving here from XXXXX state.
4. The car wash included a gas station and
convenience store.
5. Petitioner bought its diesel and gasoline from
XXXXX XXXXX Company.
6. Mr. XXXXX spoke with XXXXX employees about
how to handle the taxes on the fuel XXXXX purchased. According to Mr. XXXXX, the XXXXX employee in charge of XXXXX's
account told him that XXXXX would take care of all of the taxes and filings of
state fuel tax returns, etc.
7. Mr. XXXXX had never been in the business of
selling gasoline and diesel fuel before.
8. When XXXXX made a delivery of diesel fuel,
Petitioner would pay for the fuel at that time.
9. At some point later, XXXXX would send
Petitioner an invoice for the fuel it had delivered.
10. During the time in question, Petitioner did
not reconcile the invoices XXXXX sent with the documentation XXXXX provided at
the time of delivery.
11. Of the forty or so XXXXX invoices Petitioner
received during the period in question, at least two of the invoices itemized
Utah state diesel fuel tax that Petitioner was charged. Copies of some of the other invoices do not
show that XXXXX charged Petitioner for this same tax.
12. In June XXXXX, Petitioner received Utah
State Tax Commission forms in the mail addressed to XXXXX, the previous
owner. Without any thought concerning
them, Petitioner simply forwarded these forms to XXXXX.
13. Unaware that Petitioner was supposed to collect
special fuel tax on diesel dispensed at its pumps, Petitioner lowered its
diesel fuel prices, thinking the tax had already been paid at time of delivery
from XXXXX.
14. In June XXXXX, the Tax Commission contacted
Petitioner about the special fuel tax returns and payments that Petitioner
should have been sending into the state back in April XXXXX.
This was the first time
Petitioner learned of its responsibility for reporting and remitting the taxes.
16. Petitioner claims that XXXXX has denied
giving them misinformation.
17. Petitioner was assessed a 15% penalty for
intentional disregard of the law and a 10% negligence penalty for failing to
file.
18. The Auditing Division suggested that the 15%
intentional disregard penalty be dropped to a 10% negligence penalty.
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 waiver of the penalties assessed on the special
fuel tax due on the quarters in question.
Interest is not waived. It is so ordered.
DATED
this 17th day of November, 1992.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
J. B.
Pacheco S.
Blaine Willes
Commissioner Commissioner