93-0946

Sales

Signed 5/24/94

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, :

:

Petitioner, : ORDER

:

v. : Appeal No. 93-0946

:

COLLECTIONS DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, :

:

Respondent. :

_____________________________________

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. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, an attorney. Present and representing the Respondent was XXXXX.

Petitioner was the subject of a Tax Commission sales and use tax audit for the period XXXXX. The Commission assessed Petitioner a deficiency amount ($$$$$) which Petitioner paid in full. The interest due was $$$$$. No penalty was added.

Petitioner is seeking a waiver of the interest assessment.

Petitioner is a metal shelving and stocking company. It maintains an inventory. Some of the inventory items remain in- state, some are shipped out of state, some items are sold and become attached to real property, some items are installed on behalf of the buyer, some items have freight charges, etc. For some time, Petitioner was confused about how to tax all of the aspects of its business transactions.

The sales and use tax audit helped to clarify the taxation questions. Apparently, Petitioner was endeavoring to deal with these issues at the time of the audit, so no penalty was levied.

Petitioner claims, however, that the interest is an unfair assessment particularly when it was doing all that it could to keep up with and interpret difficult areas of tax law and apply them to its business dealings.

Further, Petitioner contends that a Commission employee explained to it that interest would not continue to accrue while an appeal was in process at the Commission.

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 calculate the interest to XXXXX, which is the day Petitioner paid the audit deficiency in full. This reduction is granted after discussing this case with the Commission employee assigned to Petitioner's case. She explained that there was a high probability of misunderstanding and confusion concerning the accrual of interest while Petitioner pursued an appeal at the Commission. Either she poorly explained that interest continues to accrue or Petitioner was confused or both.

A further reduction in interest is not granted in that this amount reflects the time value of money.

This Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request for a Formal Hearing within ten (10) days of the date of this decision. 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

160 East 300 South

Salt Lake City, Utah 84134

It is so ordered.

DATED this 24th day of May, 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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