Signed 1/21/94






In Re:                            )

                                  :    INFORMAL DECISION

XXXXX,                            )

                                  :    Appeal No. 93-1733


                                  :    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 is requesting a waiver of the two $$$$$ penalties assessed against Petitioner's sales and use tax account for the year XXXXX.

          According to Tax Commission records, Petitioner filed its XXXXX return and remitted a payment of $$$$$ on XXXXX.  Two $$$$$ late penalties were assessed for the late filing and late payment.

          Petitioner explained that it had switched to a new accounting firm in XXXXX.  This accounting firm had mistakenly assumed that all of Petitioner's sales were wholesale sales and, therefore, were not subject to sales tax.  No return was filed for this reason.  Later, after the filing deadline had passed, Petitioner realized the oversight and submitted its return late with payment.

          Petitioner contends that an abatement of penalties is in order, saying that its error was not intentional.

          This is not the first year Petitioner has filed a sales and use tax return.

                            DECISION AND ORDER

          The Tax Commission finds sufficient cause does exist to waive one of the two $$$$$ late penalties associated with the sales and use tax due on the year XXXXX.

          The Commission reminds Petitioner that a sales and use tax return must be filed regardless of whether or not Petitioner's sales were/were not all tax exempt.  "Every person responsible for the collection of the tax under the act shall file a return with the Tax Commission whether or not sales tax is due."  (Utah Admin. Rules R865-19-12S(A) and Utah Code Ann. '59-12-107.)

          DATED this 21st day of January, 1994.



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).