BEFORE THE UTAH STATE TAX COMMISSION
XXXXX dba XXXXX, )
: Appeal No. 93-1625
: Account No. XXXXX
AUDITING DIVISION OF THE :
UTAH STATE TAX COMMISSION, :
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 attorney XXXXX. Present and representing the Respondent was XXXXX.
According to Tax Commission records, the Auditing Division conducted a sales and use tax audit of Petitioner for the period XXXXX. A $$$$$ sales tax deficiency was assessed as a result of the audit. A ten percent penalty ($$$$$) and interest were also added.
Petitioner paid a portion of the total assessment, leaving a balance of $$$$$ at one point. Due to the fact that full payment had not been made, the Commission assessed Petitioner another ten percent penalty in the amount of $$$$$.
Petitioner is seeking a waiver of the penalty assessments.
Petitioner's attorney explained that Petitioner should not be penalized in this case. Ms. XXXXX stated that Petitioner had sold a couple of vehicles to an Orem company tax exempt because the buyer had represented to it that it had wholesale numbers. Petitioner understood that the cars would be wholesaled and not subject to sales taxes.
XXXXX of the Auditing Division responded, however, that the 10% negligence penalty was assessed because the percentage of the deficiency to the total tax paid for the audit period was high (21%). Further, 78% of this 21% figure (roughly $$$$$) represents taxes Petitioner actually collected from customers and never remitted to the Commission.
Although Petitioner does have an excellent record of filing returns and paying the reported taxes on time, this audit assessment indicates there was a significant accounting problem at the time.
DECISION AND ORDER
Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties and interest assessed for the audit period XXXXX dealing with sales and use tax.
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
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
Joe B. Pacheco Alice Shearer