94-1414

Sales Tax

Signed 5/25/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1414

:

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. Gail Reich, 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 of the Collection Division of the Utah Tax State Commission.

This appeal involves a waiver request for penalty and interest resulting from sales tax for the XXXXX and the XXXXX XXXXX. A late payment penalty was imposed for the XXXXX in the amount of $$$$$. Late payment and late filing penalties were imposed for the XXXXX in the amount of $$$$$; for the XXXXX XXXXX in the amount $$$$$; and for the XXXXX in the amount of $$$$$.

At the hearing Petitioner explained that the company had been in business for XXXXX and had always paid sales tax as the money became available. Since the company operated on an XXXXX XXXXX, sales tax became due and owing often XXXXX. When some XXXXX and XXXXX the monies did not become available for paying the sales tax. The XXXXX in XXXXX. Petitioner is attempting to pay all debts XXXXX. As for the XXXXX, Petitioner explained that he had sent a check to the Tax Commission which was returned. He received no notice of that and ultimately received misinformation from the Tax Commission regarding the returned check.

Respondent indicated at the hearing that the problem with the XXXXX was partially as a result of misinformation on the part of the Tax Commission and recommended waiver of the penalty for the XXXXX. Respondent further explained that the XXXXX which was the basis for the waiver request for the XXXXX did not rise to the level of reasonable cause which the Tax Commission has determined would justify a waiver of penalty or interest. The possibility of an offer in compromise for the XXXXX based on XXXXX was discussed.

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(8).)

DECISION AND ORDER

Based upon the information presented at the conference, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty but not the interest for the XXXXX. The Commission further finds sufficient cause has not been shown to waive either penalty or interest for 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 25th day of May, 1995.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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