BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : ORDER
: Appeal No. 93-2191
COLLECTIONS DIVISION OF THE :
UTAH STATE TAX COMMISSION, : Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission for a Settlement Conference pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX, Chief Financial Officer. Present and representing the Respondent was XXXXX.
This case concerns itself with late sales and use tax payment and filing for the month of XXXXX. Petitioner filed the return and payment on XXXXX, five days late. As a result, the Commission assessed Petitioner two ten percent penalties ($$$$$ apiece) and interest ($$$$$).
Later, the Commission waived a single ten percent penalty.[i]1
Petitioner is requesting a waiver of the remaining ten percent penalty and interest amounts.
According to Petitioner's chief financial officer, Petitioner was experiencing difficult internal problems during the time period in question. The controller/office manager and other personnel left Petitioner's employment. Petitioner's administrative procedures were insufficient. There was confusion over how to file and pay the taxes in question on the automated system.
To rectify the situation, Petitioner has hired two full- time auditors to handle the work of the 10-15 businesses that comprise XXXXX.
Petitioner is particularly upset that it also lost its $$$$$ vendor discount for the month of XXXXX.
In summary, Petitioner contends that the loss of the vendor discount and $$$$$ in penalties is a hefty fee for being five days late, especially when the corporation was experiencing difficult personnel changes and now has solved the problem.
DECISION AND ORDER
Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties and interest assessed for the month of XXXXX on sales and use tax. Further, Petitioner is not entitled to the vendor discount for this same month.
The law provides for the penalty that was assessed in this case. The internal problems that may have plagued Petitioner at the time of the late payment and late filing are insufficient grounds to justify further reducing the penalty amount.
This Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files a written request for a Formal Hearing within ten (10) days of the date of this decision. 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
160 East 300 South
Salt Lake City, Utah 84134
It is so ordered.
DATED this 24th day of May, 1994.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer
[i] 1The Commission has waived earlier assessed penalties for the months of XXXXX and XXXXX because Petitioner was only one day late in each instance.