BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: )
:
XXXXX ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
) AND FINAL
DECISION
:
) Appeal No.
92-2090
: Account
No. XXXXX
_____________________________________
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. Present and representing Petitioner was XXXXX, an attorney.
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 periods in question are the first three
quarters of XXXXX and the first three quarters of XXXXX.
3. Petitioner failed to timely file and pay the
sales and use taxes due on the quarters in question. Consequently, the Tax Commission assessed Petitioner $$$$$
penalty on each quarter which reflects a $$$$$ late filing fee and a $$$$$ late
payment fee.
4. Petitioner is requesting a waiver of the
penalty and interest amounts.
5. Petitioner began as a California corporation
in XXXXX and existed solely as a service-oriented business. As such, Petitioner was not liable for
collecting sales and use tax.
6. Then, in XXXXX, Petitioner expanded business
to Utah where it employed a single employee and began retail sales for the
first time.
7. Petitioner did not formally set up
accounting procedures right away as the Utah business was still new and
organizing itself.
8. After Petitioner hired a bookkeeper that
same year, the bookkeeper discovered that Petitioner had failed to file and pay
sales and use taxes for the first three quarters of XXXXX. Petitioner rectified the problem by XXXXX.
9. Then, in the end of XXXXX, the bookkeeper
quit Petitioner's employment.
10. Petitioner hired XXXXX to handle its books
although she had no familiarity with taxes.
At the same time, Petitioner went to a certified public accountant,
XXXXX, for advice on tax filings.
11. XXXXX provided Petitioner a list of all of
its tax filing obligations and filing deadlines.
12. Later, in XXXXX, Petitioner realized that it
was collecting Utah sales tax and that it was not being remitted. Petitioner then filed and paid on the
outstanding XXXXX quarters in XXXXX.
13. Petitioner discovered that the sales and use
tax in XXXXX was not remitted because XXXXX had been following the accountant's
list of tax filings which omitted any reference to sales and use tax
filings. Petitioner provided a copy of
the C.P.A.'s list, showing the omission.
14. Petitioner is requesting a waiver of
penalties at the very least, as it was unfamiliar with filing requirements
during the first three quarters of XXXXX.
In XXXXX, the list of tax obligations from the accountant omitted the
sales and use tax filings causing another delay.
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 associated with the sales
and use tax due on the first three quarters of XXXXX and the first three
quarters of XXXXX by $$$$$ on each quarter.
The interest is not waived. It
is so ordered.
DATED
this 4TH day of AUGUST, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson* Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer*
Commissioner Commissioner