BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
: FINDINGS
OF FACT,
XXXXX, ) CONCLUSIONS OF LAW,
: AND FINAL
DECISION
)
: Appeal No.
92-1887
)
: 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. 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 and use tax.
2. The period in question is the second quarter
of XXXXX.
3. Petitioner filed and paid its second quarter
XXXXX sales and use tax return nine days late.
4. The Tax Commission assessed Petitioner a
penalty and interest for the lateness.
5. Mr. XXXXX, owner of XXXXX, testified that he
was aware of the filing deadline, but did not want to file until he had
sufficient funds in the bank to cover the payment check.
6. Petitioner had been a subject of a sales and
use tax audit for several quarters prior to the one in question. During the audit, Mr. XXXXX learned much
about how to report sales and use tax.
As a result of the audit, Petitioner was assessed an additional $$$$$ in
sales and use taxes which Petitioner paid in XXXXX, leaving Petitioner short on
funds due on the second quarter XXXXX.
7. Mr. XXXXX recalled that in earlier years the
Tax Commission took longer to process quarterly returns, allowing a week or two
to file and pay past a deadline before a penalty would be attached.
8. Petitioner has been in business since XXXXX
and has had other late filings and payments sprinkled throughout its account
history. Petitioner has paid previously
assessed penalties and interest on these other quarters. Mr. XXXXX feels that the penalty in this
case is excessive in that Petitioner was only nine days late.
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 not been
shown which would justify a waiver of the penalties and interest associated
with the sales and use tax due on the second quarter XXXXX. Petitioner was aware of the filing deadline
and missed it. The fact that Petitioner
had to pay additional taxes due to the audit is irrelevant. Sales and use taxes are collected on behalf
of the state. If they are not used for
any other purpose, there should be no problem remitting them when due. It is so ordered.
DATED
this 9th day of May, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner