BEFORE THE UTAH STATE TAX COMMISSION
In Re: )
) INFORMAL DECISION
) Appeal No. 93‑1449
) Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. As authorized by Utah Code Ann. '63‑46b‑5, this decision is based upon information contained in the Tax Commission's file.
For several years, XXXXX owned and operated a business known as "XXXXX". She filed sales tax reports and paid her sales tax liability on a quarterly basis. 1
For unknown reasons, a "return mail code" was placed on XXXXX' sales tax account during XXXXX. This code is intended for use when a taxpayer's address of record is no longer valid. In fact, XXXXX' address had not changed and the return mail code was placed on her account in error.
XXXXX' second quarter XXXXX report was due by the end of XXXXX. It was not filed until XXXXX. When filed, the report established a tax liability of $$$$$. Due to the late filing, penalties of $$$$$ and interest were assessed against her. Because of the return mail code, she received no notice that penalties or interest had been assessed.
The same pattern occurred again with respect to the second quarter of XXXXX. XXXXX' return was filed XXXXX days late and established tax liability of $$$$$. Penalties totalling $$$$$ and interest were assessed against her. She received no notice that the penalties or interest had been assessed.
The Commission has previously waived $$$$$ of the $$$$$ in penalties imposed against XXXXX.
DECISION AND ORDER
The Commission recognizes that the mistaken use of a return mail code on this account has caused a degree of confusion. If XXXXX had received timely notice of her delinquency with respect to second quarter of XXXXX, it is unlikely the problem would have reoccurred in XXXXX. The Commission also notes the small amount of tax in question qualified XXXXX for annual, rather than quarterly, filing.
Based on the foregoing, the Tax Commission finds that reasonable cause exists to waive the penalties associated with XXXXX' second quarter XXXXX and second quarter XXXXX sales tax liability. Interest is not waived, but the Collections Division is instructed to recompute the amount of interest due, taking into account the fact that this decision has waived all penalties. It is so ordered.
DATED this 16 day of August, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
NOTICE: You have twenty (20) days after the date of the final order to file a request for reconsideration or thirty (30) days after the date of the final order to file in District Court a petition for judicial review. Utah State Tax Commission Administrative Rule R861‑5A‑1(p) and Utah Code Ann. '63‑46b‑
1 Although XXXXX filed her sales tax on a quarterly basis, she could have elected to file and pay the tax on an annual basis because her tax liability was less than $$$$$ per year.