BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
v. ) AND FINAL DECISION
COLLECTION DIVISION OF THE ) Appeal No. 93-1729
UTAH STATE TAX COMMISSION, :
) Serial No. XXXXX
Respondent. ) Tax Type: Sales
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Lisa Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner were Mr. XXXXX, a CPA, and XXXXX. Present and representing Respondent were XXXXX and XXXXX of the Utah State Tax Commission.
Based upon the evidence and testimony presented at the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The periods in question are August, September, October, and November, XXXXX.
3. Petitioners were a quarterly sales tax return filer, and they were changed to a monthly filing requirement in July, XXXXX, and the July return was timely filed and paid. In either late August or early September of XXXXX, the computer records of Petitioner were destroyed by a lightning surge, which completely destroyed the mother board, the power supply, and all of the circuitry for the computer. As a result of that lightening surge all of the data on the computer hard disk was lost and scrambled and was no longer reliable or dependable.
The Petitioners called in a computer consultant who tried to find the information in the computer but was unable to do so. The computer was ultimately repaired but the data on the hard disk was not usable, so the Petitioner had to completely re-enter the payroll information and the sales tax information, together with all of the inventory information to calculate the sales tax figures.
4. The computer was ultimately repaired in late September, XXXXX, following which, Petitioner did re-enter the information.
5. The Petitioner never applied for an extension of time for any of the monthly sales tax returns and never prepaid the amount of taxes which it had collected.
The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. '59-1-401(8).)
CONCLUSIONS OF LAW
The Petitioner has shown reasonable cause for the failure to file and pay the tax for August XXXXX and September XXXXX. However, Petitioner has not shown reasonable cause for October XXXXX and November XXXXX.
DECISION AND ORDER
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty for August XXXXX and September XXXXX. However, sufficient cause has not been shown which would justify a waiver or reduction of the penalty or interest associated with October XXXXX or November XXXXX. The sales tax penalty for August XXXXX and September XXXXX are hereby waived, but the penalty for October XXXXX and November XXXXX, and all interest, are not waived. It is so ordered.
DATED this 13th day of September, 1994.
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 a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1-5A(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46-14(3)(a).)