93-1696

Sales

Signed 5/24/94

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX dba XXXXX's )

of XXXXX, : FINDINGS OF FACT,

Petitioner, ) CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

)

COLLECTIONS DIVISION OF THE : Appeal Nos. 93-1696

UTAH STATE TAX COMMISSION, ) and 93-2199

Respondent. : Account No. XXXXX

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX, Lisa L. Olpin, Administrative Law Judge, heard the matter for and on behalf of the Commission. Petitioner represented himself. 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 and use tax.

2. The months in question are XXXXX, XXXXX, XXXXX, and XXXXX of the year XXXXX, and XXXXX and XXXXX of the year XXXXX.

3. Petitioner is requesting a waiver of the penalty and interest assessments on the various sales and food tax filings and payments for the months listed above.

4. According to Mr. XXXXX, he tried to file and pay timely on all of the months in question using the Tax Commission's new electronic filing system. He stated that the system was not working correctly.

5. In support of his position, Mr. XXXXX submitted a newspaper article issued by the Utah Taxpayers Association wherein the Executive Director of the Tax Commission is quoted saying that all penalty and interest assessments levied in the first six months of the use of the Electronic Funds Transfer System will be automatically waived (July - December XXXXX).

4. At the formal hearing in this matter, XXXXX of the Collections Division agreed to waive all penalties and interest associated with late payments and late filings on the sales and food tax returns for the months XXXXX through XXXXX.

5. With those months resolved as far as the Commission is concerned, all that remains is whether or not reasonable cause exists to waive penalty and interest assessments for the months of XXXXX and XXXXX XXXXX.

6. According to Commission records, Petitioner filed its XXXXX sales and food tax returns with payment on XXXXX. As a result, the Commission assessed Petitioner three ten percent penalties ($$$$$ x 3) on the late sales and use tax filing/payment and a single ten percent penalty ($$$$$) on the late food tax filing/payment.

7. Again, according to Commission records, Petitioner filed its XXXXX sales and food tax returns late, on XXXXX. The payments, however, were received timely. As a result of the late filings, the Commission assessed Petitioner two ten percent penalties ($$$$$ x 2) on the late sales tax return and a single ten percent penalty ($$$$$) on the late food tax filing.

8. Mr. XXXXX, Petitioner's owner, maintains that the returns and payments for XXXXX and XXXXX XXXXX were all filed and paid timely. He is not sure why the Commission is showing them late. Because of past problems with Petitioner's sales account number, he supposed that the Commission used number XXXXX as opposed to the true number XXXXX and lost the filings.

9. Petitioner's account history shows repeated late penalties for the years of quarters preceding XXXXX.

CONCLUSIONS OF 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

The Commission confirms the recommendation by the Collection Division to waive all penalty and interest assessments for the months XXXXX, XXXXX, XXXXX and XXXXX XXXXX on sales and food tax.

The Commission, however, finds no reason to waive the penalties and interest assessed for the remaining two months of XXXXX and XXXXX XXXXX on the same tax types. Commission records do not substantiate Petitioner's claims for the lateness and Petitioner has not shown sufficient evidence in support thereof.

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

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 final order to file in Supreme Court a petition for judicial review. Utah Code Ann. ''63-46b-13(1), 63-46b-14(3)(a).

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