93-0627

Sales

Signed 9/10/93

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

In Re: )

:

XXXXX, ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

) AND FINAL DECISION

:

) Appeal No. 93-0627

: 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. Petitioner was present and represented himself.

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 two quarters of XXXXX.

3. Petitioner filed and paid his first quarter XXXXX sales and use tax ($$$$$) on XXXXX, twelve days late. He filed and paid his second quarter XXXXX sales and use tax ($$$$$) on XXXXX, seventeen days late. As a result, the Tax Commission assessed Petitioner two $$$$$ penalties, one for late filing and the other for late payment, on each of the two quarters. A $$$$$ legal fee was also assessed on one of the quarters. Interest was added.

4. The Tax Commission previously waived $$$$$ in penalties on the first quarter XXXXX, leaving the legal fee and $$$$$ in penalties on the second quarter XXXXX.

5. Petitioner sells industrial equipment. Most of his sales are to government entities and, therefore, are tax-free. Even when sales are high, the collectible tax is low.

6. Petitioner stated that he tries to keep track of sales and use tax filing deadlines on his personal calendar. During the quarters in question, however, he missed the first deadline because he was temporarily occupied with his home life, caring for his wife who was severely ill with the flu and their six children.

7. Then, Petitioner also missed the second quarter XXXXX filing when he had to go out of town and he missed the filing deadline in an oversight.

8. Petitioner is also claiming that it would be a financial hardship for his family to pay the remaining $$$$$ penalty at this time as finances are very tight.

9. Mr. XXXXX feels that the $$$$$ penalty is excessive in this situation where the amount of tax owing is minimal.

10. Aside from the quarters in question, Petitioner has timely filed and paid his sales and use taxes since XXXXX.

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 penalties associated with the second quarter XXXXX sales and use taxes to $$$$$. The interest and legal fees are not waived on either the first or second quarter of XXXXX. 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

Chairman Commissioner

 

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

 

NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63-46b-13(1), 63-46b-14(2)(a).

 

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