94-1466

Sales Tax

Signed 3/15/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 94-1466

:

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 were XXXXX. Present and representing Respondent was XXXXX.

Penalties of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner relating to its monthly filing of XXXXX and separate penalties relating to the XXXXX were assessed for the same period of $$$$$ with interest of approximately $$$$$. Petitioner requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner is now appealing that denial.

At the conference Petitioner explained that they have a XXXXX who they had relied on to take care of all the tax filings. In XXXXX to be at work full time. However, XXXXX Petitioner that XXXXX. She had told Petitioner after XXXXX to work for Petitioner. Because of this Petitioner's representatives stated they did not know they were suppose to mail the XXXXX. Later, Petitioner's representatives stated, they caught the error and paid the taxes prior to being contacted by the Tax Commission concerning payment of the taxes for the periods involved.

Later after the taxes had been paid Petitioner's representatives stated they were contacted first only concerning a penalty assessed for their late payment of XXXXX. Then they received further notices concerning the penalties assessed for the XXXXX.

At the hearing Respondent disagreed with Petitioner's statement that the Petitioner corrected the error prior to being contacted by the Tax Commission. Respondent stated that the history showed several mailings of notices prior to the Petitioner's making the correct payments except for XXXXX. Respondent stated that Petitioner had filed and paid for XXXXX prior to receiving any notice from the Tax Commission concerning XXXXX. Respondent looked at the mailing address history and did state that some of the earlier notices had been sent to the XXXXX XXXXX until the Petitioner had notified the Tax Commission to change the address to Petitioner's office.

Respondent recommended reducing the penalties by the amount of penalty charged for XXXXX because Petitioner had corrected the error prior to action by the Tax Commission for XXXXX 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 XXXXX penalties assessed so that the penalties are reduced from $$$$$ to $$$$$ for the Petitioner's XXXXX and from $$$$$ to $$$$$ for the Petitioner's 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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