94-1367
Sales Tax
Signed 3/15/95
____________________________________
XXXXX, )
:
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
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 15 day of March, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^