93-0943

Sales

Signed 8/11/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 93-0943

:

COLLECTION DIVISION OF THE : Filing Periods: XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Sales

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX, the secretary and controller. Present and representing Respondent was XXXXX of the Collections Division.

The issue in this case is penalties which were imposed for a delinquent sales tax return for the fourth quarter of XXXXX for Petitioner. Petitioner sells donuts to XXXXX, and they required electronic data interfacing by way of computer for the billing of their matters. The Petitioner was in the process of installing the computer programs and inputting the data, and they ended up with a RAM memory conflict, which caused the computer to only process one-third of the information and then stop all further processing.

The Petitioner was ultimately required to bring in a specialist in a consultant capacity, and paid over one thousand dollars to get the computer problem remedied.

The sales tax return for the fourth quarter was due on XXXXX, and the Petitioner finally got the computer system problems corrected on XXXXX, and ran the computer information to file the fourth quarter tax return on XXXXX, and mailed it on XXXXX. The return and full payment were received on XXXXX, so it was sixteen days late.

The Petitioner has two prior delinquencies, one of which was in XXXXX and the other of which was in XXXXX, both of which were when the prior office manager was in charge. The Petitioner also had a sales tax audit, and they immediately paid the amount the audit determined to be due, and incurred no penalty or interest upon the audit. Except for the two prior delinquencies, the Petitioner has always had an outstanding record of timely filing and payment.

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty assessed for the fourth quarter XXXXX sales tax return, but interest is not waived.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. Such a request shall be mailed to the address listed below and must include the Petitioner's name, address, and appeal number:

Utah State Tax Commission

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 11th day of August, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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