93-1729
Sales
Signed 9/13/94
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX, )
:
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.
APPLICABLE
LAW
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
Chairman Commissioner
Joe B. Pacheco Alice Shearer
Commissioner Commissioner
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).)
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