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
^^