Signed 11/22/93






In Re:                            )

                                  :    INFORMAL DECISION

XXXXX,                            )

                                  :    Appeal No. 93-1669


                                  :    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 provided for by Utah Code Ann. '63-46b-5, this decision is based upon information contained in the Tax Commission's file.


          Petitioner did not request a hearing in this matter.

          The Tax Commission assessed Petitioner one $$$$$ penalty for failing to file a third quarter XXXXX sales and use tax return  and a second $$$$$ penalty for failing to remit sales and use tax for the same period.  The Commission again assessed Petitioner in the same amounts for failing to file and pay sales and use tax for the fourth quarter XXXXX.  Interest was added also.

          Petitioner's bookkeeper, XXXXX, explained that Petitioner, a Texas corporation and located in New Mexico, did not begin sales activity in Utah until XXXXX.  No third quarter XXXXX sales and use tax return was submitted for this reason.

          Ms. XXXXX stated that she sent a return for the fourth quarter XXXXX with payment on XXXXX.  She provided a copy of Petitioner's envelope postmarked XXXXX, and addressed to the Tax Commission as well as a copy of the check.

          According to Ms. XXXXX, the Commission, for some unknown reason, sent back this return and check on XXXXX.  She provided a copy of a Commission envelope addressed to Petitioner and postmarked XXXXX.

          Ms. XXXXX then resubmitted the fourth quarter XXXXX return and payment along with the first quarter sales and use tax return on XXXXX.

          The Commission credited Petitioner's account the fourth quarter XXXXX and first quarter XXXXX payment amounts.  Since Petitioner never filed a return for the third quarter XXXXX, the Commission estimated Petitioner's tax liability.  It appears that an estimate was done because Petitioner's sales tax license request shows that Petitioner intended to start selling in Utah on XXXXX.

          Petitioner is requesting a waiver of all of the penalty assessments and interest amounts in light of the above information.

                            DECISION AND ORDER

          The Tax Commission finds sufficient cause does exist to waive the penalties and interest associated with the sales and use tax assessed on the third and fourth quarters XXXXX.

          The Commission also reminds Petitioner that a sales and use tax return must be filed whether or not any taxes were received.

          DATED this 22nd day of November, 1993.



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 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-14(3)(a).