BEFORE THE UTAH STATE TAX
COMMISSION
___________________________________
XXXXX
: FINDINGS
OF FACT,
Petitioner : CONCLUSIONS OF LAW,
v. : AND FINAL DECISION
:
AUDITING
DIVISION OF THE : Appeal No. 92-1537
UTAH STATE TAX COMMISSION, :
: Account
No. XXXXX
:
_______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Paul F. Iwasaki, Presiding
Officer, heard the
matter for and on behalf of the
Commission. Present and representing
the Petitioner was XXXXX. Present and
representing the Respondent 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 XXXXX through
XXXXX.
3. As a result of an audit conducted by the
Auditing Division, it was
determined that for the period in question
the Petitioner reported on its Special Fuel User Tax Return XXXXX miles
traveled in Utah. The actual miles
traveled in Utah during that period were XXXXX miles.
4. The Petitioner's representative testified
that the discrepancy was due to a "computer error" which occurred
when the Petitioner was switching its
accounting and tax matters from one computer software system to another.
5. As a result of the reporting error,
additional tax due in the amount of $$$$$ was due which the Petitioner
paid. Additionally, a penalty in the
amount of $$$$$ and interest in the amount of $$$$$ was imposed.
6. The Petitioner paid the tax and interest,
however, is seeking waiver of the penalty portion of the assessment.
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
In
the present case, the Petitioner argues that the penalty should be waived
because the "computer error" was beyond their control and thus
imposition of a penalty would be unreasonable.
The
Tax Commission finds that under the circumstances and facts surrounding this
case, the imposition of the penalty is appropriate. The Petitioner's representative was unable to testify as to what
procedures, if any, were in place to assure that errors of this type would not
occur. In the absence of such
procedures, the Petitioner must bear the risk of errors that go undetected.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the period of
XXXXX through XXXXX. It is so ordered.
DATED
this 12th day of November, 1992.
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