93-1437
Sales
Signed 12/2/93
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
In Re: )
:
XXXXX, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
) AND FINAL DECISION
:
) Appeal No. 93-1437
: Account No. XXXXX
_____________________________________
STATEMENT OF
CASE
A settlement conference was scheduled
in this matter on XXXXX, at 3:00 p.m.
Alan Hennebold, Administrative Law Judge (ALJ), presided on behalf of
the Utah State Tax Commission. XXXXX,
General Counsel, and XXXXX, Controller, represented XXXXX. XXXXX and XXXXX, both of the Tax
Commission's Collection Division, represented the Collection Division.
At the suggestion of the ALJ and with
the consent of the parties, the settlement conference was converted to a formal
hearing on the merits of XXXXX's appeal.
Based on the evidence presented at the
hearing, the Commission hereby makes its:
FINDINGS OF FACT
1.
XXXXX asks the Commission to waive a 10% late payment penalty assessed
in connection with XXXXX's prepayment of sales tax for the second quarter of
XXXXX.
2.
XXXXX has been in business for many years. Its sales tax payments to Utah range upward of $$$$$ per quarter.
3.
In XXXXX, XXXXX failed to prepay its second quarter sales tax
liability. As a result, a 10% penalty
of $$$$$ was assessed against it, which it paid.
4.
In XXXXX, XXXXX again neglected to prepay its second quarter sales tax
liability. Rather than making the
prepayment when due on XXXXX, it mistakenly included the prepayment with its
regular quarterly payment on XXXXX. It
was again assessed a 10% penalty, this time in the amount of $$$$$. It is this penalty which XXXXX asks the
Commission to set aside.
5.
XXXXX explains that it failed to prepay its second quarter XXXXX sales
tax because it did not receive a prepayment form from the Commission. Also, it was aware that the Utah Legislature
had changed the sales tax reporting period from a quarterly to a monthly basis,
effective XXXXX.
6.
The Collection Division has reviewed its records and believes that the
prepayment form was properly mailed to XXXXX.
CONCLUSIONS OF
LAW
The penalty for failure to prepay
sales tax is 10% of the tax not paid.
(Utah Code Ann. '59-1-401(6),
as in effect prior to July 1992.)
The Tax Commission may waive, reduce,
or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(8).)
DECISION AND
ORDER
XXXXX concedes that it was required to
prepay its sales tax for the second quarter of XXXXX and that it failed to
comply with the foregoing requirement.
XXXXX does not argue that the 10%
penalty was improperly assessed against it.
Instead, it argues that reasonable cause exists for the Commission to
waive the penalty. In particular, XXXXX
contends that it did not receive the prepayment form from the Commission and
points out that the legislature had already acted to remove the prepayment
requirement.
The Commission cannot determine
whether XXXXX did or did not receive a prepayment report form. However, XXXXX is an experienced
organization and is responsible for knowledge of tax filing requirements and
deadlines. This is particularly true
where, as here, a taxpayer has previously been penalized for failure to make
the prepayment. As for legislative
repeal of the prepayment requirement, such repeal was not effective until after
the period in question.
Based on the foregoing, the Tax
Commission finds that reasonable cause has not been shown to justify waiver of
the penalty associated with XXXXX's
prepayment of its second quarter XXXXX sales tax liability. XXXXX's waiver request is therefore
denied. It is so ordered.
DATED this 2nd day of December, 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(3)(a).
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