94-1412

Sales Tax

Signed 3/15/95

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

XXXXX

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1412

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Sales Tax

_____________________________________

 

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An informal hearing was held 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.

Based upon the evidence and testimony presented at the informal hearing, the Commission makes its:

FINDINGS


Penalties totalling $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to sales tax for the second and third quarters of XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. The underlying amount of the sales tax owed for the second quarter of XXXXX was $$$$$ and the underlying amount of the sales tax owed for the third quarter of XXXXX was $$$$$.

At the hearing Petitioner stated that he was unable to obtain timely the forms required for the filings in question because of errors on the part of employees of the Tax Commission. These errors occurred when Petitioner notified the Tax Commission of his change of address and Tax Commission employees made a series of mistakes in entering the address change on the Tax Commission's computer system. Petitioner had to notify them four times of the same new address before it was changed correctly. Petitioner also stated that the penalties were excessive compared to the underlying tax. Further, Petitioner had written an endorsement on the back of the checks with which he paid the sales tax. The endorsement indicated that if accepted the check was payment in full for that quarter. These checks were accepted by the Tax Commission.

At the hearing Respondent stated that the Petitioner had shown sufficient reasonable cause so that Respondent recommended waiving the penalties and interest.

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(10).)

DECISION AND ORDER

The Tax Commission finds sufficient cause does exist to waive the penalties of $$$$$ and interest of approximately $$$$$ related to the sales tax for the second and third quarters of XXXXX.

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

 

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a.) a Petition for Judicial Review in the Supreme Court, or b.) a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. ''59-1-601(1), 63-46b-13(1), 63-46b-14(3)(a).)

 

^^