94-1458

Sales Tax

Signed 3/15/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1458

:

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 $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to sales tax for the XXXXX period. The underlying amount of the tax owed for this period was $$$$$. Petitioner had requested a waiver of these penalties and interest from the Collection Division Waiver Unit which did reduce the penalty to $$$$$ but denied any adjustment of the interest. Petitioner now appeals the remaining penalty and interest.

At the conference Petitioner's representative stated that Petitioner thought it had called in the electronic transfer of the payment and had indicated on all its internal auditing that this had been done. Petitioner discovered the transfer had not been made when it received its next month's bank statement and immediately corrected the error XXXXX from the due date. Petitioner stated that it had been in business for XXXXX and had a good payment history with the Tax Commission.

At the hearing Respondent stated that the Petitioner had discovered and corrected its error prior to any notice from the Tax Commission. Respondent stated the Petitioner's payment history indicated a late payment had been made in the XXXXX in XXXXX for which a penalty had been assessed and then waived. Respondent stated that Petitioner had not show sufficient reasonable cause to reduce the penalty any further.

It was determined that Petitioner had been required to file XXXXX. It was further determined that the XXXXX payment had been the only late filing or payment other than the one at issue, in the Petitioner's account history which went back to XXXXX.

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 remaining penalty of $$$$$ assessed relating to the XXXXX sales tax filing period. Sufficient cause has not been show 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

^^