94-1450

Sales Tax

Signed 3/15/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1450

:

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 $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to the XXXXX tax for the XXXXX. Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to the XXXXX tax for the same XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner is appealing this denial.

At the conference Petitioner's representative stated that Petitioner is required to file XXXXX tax report. For the quarter in question Petitioner's bookkeeper XXXXX. Also there was a change of Petitioner's XXXXX. All XXXXX were prepared and paper clipped together with the XXXXX. Inadvertently one check was written for the report on the top and all were mailed in together. It was about XXXXX later that Petitioner caught the error and mailed payments for XXXXX reports. Petitioner's representative stated it was an honest mistake.

Petitioner's representative stated that Petitioner has been in business since the XXXXX and he thought Petitioner's payment history has been good.

At the conference Respondent stated that Petitioner's account history indicated XXXXX. Both for the XXXXX. Overall, Respondent stated Petitioner's account record has been fairly good. Further, Respondent stated the Petitioner did correct the error prior to official notice from the Tax Commission and recommended waiving the penalties for both taxes.

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 been shown to waive the penalties of $$$$$ for the XXXXX and of $$$$$ for the XXXXX for the XXXXX. Sufficient cause has not been shown to waive the interest.

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 15th 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

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