BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
) AND FINAL DECISION
) Appeal No. 93-0316
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX, XXXXX. Lisa L. Olpin, Presiding Officer, heard the matter for and on behalf of the Commission. Representing the Petitioner by telephone was XXXXX, Petitioner's manager of reporting and taxes.
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, third and fourth quarters of XXXXX and all quarters of XXXXX, XXXXX and XXXXX.
3. Petitioner, a XXXXX company, filed its first quarter XXXXX sales and use tax return over two months late, its third quarter XXXXX return over three months late and its fourth quarter XXXXX return nineteen days late. All of the remaining sales and use tax returns for XXXXX, XXXXX and XXXXX were filed in XXXXX XXXXX. Payments accompanied each of the late filings.
4. The Tax Commission penalized Petitioner for the lateness in filing and payment and added interest. Later, the Commission abated the penalty amount from ($$$$) to ($$$$). Interest was not waived.
5. Petitioner is requesting that the penalty amount be entirely abated as well as any accruing interest.
6. XXXXX, Petitioner's manager of reporting and taxes, testified that Petitioner registered with Utah and began collecting sales and use taxes here in XXXXX.
7. While Petitioner received the sales and use tax forms for remittal from the Commission for a time, all of a sudden they were no longer forthcoming.
8. XXXXX stated that Petitioner repeatedly called the Commission for forms and was told numerous times that they would be sent. Petitioner never received the forms.
9. Finally, in XXXXX XXXXX, XXXXXgot in touch with someone in the Tax Commission who learned from Petitioner's account history screen that a hold code had been erroneously placed on Petitioner's account. The Commission never removed the hold code over the years, so Petitioner was never contacted by the Commission in any fashion or for any reason.
10. During the years in question, Petitioner was always located at the same address.
11. At no time did Petitioner consider sending in the tax money with the sales and use tax account number anyway or using blank forms.
12. Petitioner contends that it is unfair to hold it liable for the penalty amounts.
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 penalty and interest assessments on the first, third and fourth quarters of XXXXX as there is no question that Petitioner had the necessary forms and sent them and the respective payments in late.
With regard to the penalties assessed on all quarters of XXXXX, XXXXX and XXXXX, the Tax Commission waives them in their entirety. Interest, however, is not waived. The Commission instructs the Collections Division to recalculate the interest based upon this decision. It is so ordered.
DATED this 10th day of September, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer