Petitioner, : ORDER
v. : Appeal No. 94-1367
COLLECTION DIVISION OF THE : Account No. XXXXX
UTAH STATE TAX COMMISSION, :
Respondent. : Tax Type: Sales Tax
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. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was XXXXX. Present and representing Respondent was XXXXX.
Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to sales tax for the XXXXX and XXXXX. The underlying amount of sales tax owed for these XXXXX was $$$$$. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied.
Petitioner's request for relief was based on the argument that Petitioner had not received notice of its delinquency timely and not a showing of reasonable cause for the late filing and payment of the sales tax.
At the conference Petitioner's representative stated that he had XXXXX in XXXXX. Petitioner did notify the XXXXX, but did not notify the Tax Commission of the change of address. Petitioner's representative stated that he did not know that he was required to also notify the Tax Commission. Since the Tax Commission did not have Petitioner's new address the Petitioner did not receive notice of the failure to file the XXXXX at issue. Petitioner had thought that all taxes had been paid. It was not until XXXXX that Petitioner's representative learned of the deficiency from a XXXXX. Petitioner immediately paid the taxes owed. Petitioner's representative asks for leniency and states that if the Tax Commission had given notice of the delinquency sooner he would have paid the amount due and avoided the interest charge.
Respondent stated that the Tax Commission did attempt to give notice to Petitioner but it did not have the new address. Respondent stated that the Petitioner is required to notify the Tax Commission of an address change. Further, Respondent stated that Petitioner was still XXXXX until XXXXX and was required to file and pay the XXXXX sales tax for the XXXXX in question. Respondent concluded that the penalties and interest were validly assessed and should not be waived.
In considering Petitioner's request for waiver or reduction of the interest the Tax Commission applies more stringent reasonable cause standards because Petitioner continued to enjoy the benefit of the use of the funds and the State of Utah was denied the benefit of the use of the funds from the time the underlying taxes were due until they were actually paid by Petitioner.
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 or reduce the $$$$$ of penalties and the approximately $$$$$ of interest assessed relating to sales tax for the XXXXX and the XXXXX.
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
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 15 day of March, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson Roger O. Tew
Joe B. Pacheco Alice Shearer