92-1922 - Sales

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

In Re: )

: FINDINGS OF FACT,

XXXXX, ) CONCLUSIONS OF LAW,

: AND FINAL DECISION

)

: Appeal No. 92-1922

)

: Account No. XXXXX

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STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. XXXXX, Presiding Officer, heard the matter for and on behalf of the Commission. Owner XXXXX represented Petitioner by telephone.

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 fourth quarter of XXXXX.

3. Petitioner contracted with twelve XXXXX stores in Utah to sell Christmas trees in their parking lots during the holiday season.

4. Mr. XXXXX, owner of XXXXX, understood that his managers of the lots in Utah had the necessary tax forms and had filed and paid the sales tax for the fourth quarter of XXXXX to Utah.

5. It wasn't until XXXXX that Mr. XXXXX learned from the Tax Commission that these taxes had not been paid and the return had not been filed. The reason for this delay in notification was that the Tax Commission was sending late notices to Petitioner at a XXXXX address. XXXXX, in turn, had been rejecting this mail intended for Petitioner.

6. Petitioner filed the delinquent return and paid the tax in XXXXX. Two ten percent penalties were assessed for the untimely filing and payment, plus interest.

7. Later, the Tax Commission waived one of the ten percent penalties.

8. Petitioner is requesting a waiver of the remaining ten percent penalty and interest amount.

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 remaining ten percent penalty or the interest associated with the sales and use tax due on the fourth quarter of XXXXX. The mailing of late notices to the wrong address does not dismiss the fact that Petitioner had a duty to see that the fourth quarter return was filed and submitted with payment on time in the first place. It is so ordered.

DATED this 22nd day of June, 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