94-1603

Sales

Signed 2/27/95

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX

Petitioner, : INFORMAL DECISION

)

v. : Appeal No. 94-1603

)

COLLECTION DIVISION OF THE : Account No. XXXXX

UTAH STATE TAX COMMISSION, )

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. Despite having been given notice of the date and location of the hearing Petitioner was not present, although Petitioner is not required to attend. Present and representing Respondent was XXXXX.

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

FINDINGS

Penalties of $$$$$ and interest of $$$$$ were assessed against Petitioner relating to the late filing and payment of sales tax for the fourth quarter of XXXXX. Petitioner had requested a waiver of these penalties and interest from the Collection Division Waiver Unit who did waive the penalties. A letter from Petitioner dated XXXXX was thought to be a request for a further appeal of the Collection Division's Waiver Unit decision and as a result an informal hearing was scheduled concerning the $$$$$ in interest. From the record in the file it appears that the Petitioner may have mailed the XXXXX correspondence prior to receiving the Collection Division Waiver Unit's decision.

According to the correspondence in the file, Petitioner's business started operations in XXXXX and Petitioner did not know it was required to file a quarterly sales tax return for the fourth quarter of XXXXX. By the first quarter of XXXXX, Petitioner understood the tax obligations and began making required quarterly filings.

Although there is reasonable cause to justify waiving the penalty because of first time error and other factors mentioned in the Petitioner's letter, Petitioner's failure to pay the withholding tax when it was due deprived the State of Utah of the use of those funds.

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

The Tax Commission finds sufficient cause does not exist to waive the interest associated with the withholding tax for the fourth quarter of XXXXX. It is so ordered.

DATED this 27 day of February, 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 Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1-5A(P) and Utah Code Ann. '63-46b-15.)

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