93-2137 & 93-2138

Penalty & Interest

Signed 7/26/94

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

Petitioner, :

: ORDER

v. :

:

COLLECTION DIVISION OF THE : Appeal Nos. 93-2137 & 93-2138

UTAH STATE TAX COMMISSION, :

Respondent. : Account No. XXXXX & XXXXX

: Tax Type: Penalty & Interest

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a settlement conference on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner were XXXXX, the accountant for Petitioner, and Mr. XXXXX. Present and representing the Respondent was XXXXX.

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 second, third, and fourth quarters of XXXXX and first, second, third, and fourth quarters of XXXXX, and first quarter of XXXXX.

3. Petitioners commenced a new business and did not have any tax forms or a tax number with which to file the tax forms.

4. Petitioners alleged that they filed an application for a sales tax number but did not receive a number for several months.

5. Once they finally received the sales tax number and the forms, it then took several months to calculate the amounts due.

6. Once they had calculated the amount due, it then took a few months to save up money with which to pay the tax.

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).)

DECISION AND ORDER

It appears to the Commission that the Petitioner was not diligently pursuing a resolution of the problem, but was instead using the tax funds which had been collected as a part of its operating capital.

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver or reduction of the penalty or interest associated with the sales tax returns for the periods in question.

This decision does not limit a party's right to a formal hearing. However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request within thirty (30) days of the date of this decision to proceed to a Formal Hearing. 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

Appeals Division

210 North 1950 West

Salt Lake City, Utah 84134

Failure to request a Formal Hearing will preclude any further administrative action or appeal rights in this matter.

DATED this 26th day of July, 1994.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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