94-1587

Sales

Signed 4/25/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

:

Petitioner, ) INFORMAL DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 94-1587

UTAH STATE TAX COMMISSION, :

) Account No. XXXXX

:

Respondent. ) Tax Type: Sales

_____________________________________

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 by telephone conference call was XXXXX. Present and representing Respondent was XXXXX.

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

FINDINGS

Penalties of $$$$$ and interest of approximately$$$$$ were assessed against Petitioner relating to sales tax for the fourth quarter of XXXXX. Petitioner had requested a waiver of the penalties and interest from the Collection Division Waiver Unit which was denied. Petitioner now appeals this denial. Petitioner's underlying tax liability for the period in question was $$$$$.

At the hearing Petitioner's representative stated that she had mailed the payment for the fourth quarter sales tax timely, that it was possible the payment had been lost in the mail or at the Tax Commission. Further, Petitioner's representative stated that she had mailed the sales tax payment with the resort and transient room tax and the Tax Commission had received the resort and transient room taxes timely. Petitioner's representative remitted a second check for the payment of the tax and interest as soon as Petitioner was notified by the Tax Commission that they did not have the original check. Petitioner provided documentation indicating that sufficient funds were available in Petitioner's account to cover the original check at the time the tax was due.

Respondent stated that the Tax Commission's records indicated that Petitioner did make an effort to pay timely and immediately sent a second check upon notification that the first was lost. For these reasons Respondent recommended reducing the penalty to 10% of the tax liability which would result in a penalty of $$$$$.

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 penalty of $$$$$ relating to sales tax for the fourth quarter of XXXXX. Sufficient cause does not exist to waive the interest.

DATED this 25 day of April, 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. 63-46b-15.)

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