BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
) AND FINAL DECISION
) Appeal No. 93-0891
: 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. Representing the Petitioner by telephone was XXXXX, Petitioner's assistant controller.
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 XXXXX.
3. Petitioner paid its sales and use tax prepayment ($$$$$) eight days late on XXXXX. As a result, the Tax Commission assessed Petitioner a ten percent late penalty of $$$$$ plus interest. When the Commission credited Petitioner's account upon receipt of the late funds, it left Petitioner a tax amount owing. Petitioner's regular second quarter payment on XXXXX was then short, causing the Commission to penalize Petitioner another ten percent of the balance again ($$$$$).
4. The Tax Commission has already waived a portion of Petitioner's penalty ($$$$$), leaving a balance of over $$$$$.
5. Petitioner is requesting a waiver of the remaining penalty and interest amounts.
6. XXXXX, assistant controller at XXXXX, testified that Petitioner had trouble adjusting to the new electronic transfer system at the Tax Commission. Ms. XXXXX mistakenly understood that Petitioner's XXXXX prepayment would be automatically electronically transferred through XXXXX with the XXXXX quarterly filing payment.
7. In a conversation with the Tax Commission in XXXXX, however, Ms. XXXXX learned that prepayment of sales and use taxes were handled differently than the regular quarterly payments and that she would need to send in the forms manually.
8. Ms. XXXXX immediately sent these forms to the Commission, but by that time, the form and the payment were late.
9. Then, because the Tax Commission paid the penalty first and then the interest and lastly, the prepayment of tax, Petitioner was left with a deficiency when the regular second quarter sales and use tax payment was electronically made. This caused Petitioner to suffer another ten percent penalty.
10. In a letter from the Tax Commission dated XXXXX, the Operations Division explained that a number of sales tax filers had had difficulty with the electronic funds transfers and that no penalties were assessed for the XXXXX filing.
11. On this basis, Petitioner is requesting a waiver of resulting penalty and interest.
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 waiver of the remaining penalty assessments on the XXXXX prepayment of sales and use tax due XXXXX and on the second quarter XXXXX sales and use tax payment. Interest, however, is not waived on the prepayment amount which was received eight days late. Interest, if any, is waived on the regular second quarter payment. 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
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).