94-1616
Sales
Signed 3/28/95
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
XXXXX
Petitioner, ) INFORMAL DECISION
:
v. )
:
COLLECTION DIVISION OF THE ) Appeal
No. 94-1616
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 was XXXXX.
Present and representing Respondent was XXXXX.
Based upon the evidence and testimony
presented at the Informal Hearing, the Commission makes its:
FINDINGS
Penalties of $$$$$ and interest of
approximately $$$$$ were assessed against Petitioner relating to sales tax for
the fourth quarter of XXXXX. Petitioner
had requested a waiver of the penalties and interest from the Collection
Division Waiver Unit which was denied, although the Collection Division Waiver
Unit did waive penalties of $$$$$ relating to sales tax for the first quarter
of XXXXX.
At the hearing Petitioner's representative
stated that Petitioner had relied on a Certified Public Accountant to prepare
and file timely Petitioner's withholding and other required tax filings. For the quarter in question Petitioner had
supplied this CPA with the funds for the withholding tax in a timely
manner. The CPA neglected to file the
return or pay the taxes.
Respondent stated that it was apparent
Petitioner had relied on a professional tax adviser who Petitioner reasonably
could have considered to be competent.
Respondent stated that this was a first time error on the part of
Petitioner. For these reasons
Respondent stated sufficient reasonable cause existed to waive the penalties.
In considering Petitioner's request for
waiver or reduction of the interest the Tax Commission applies more stringent
reasonable cause standards because the State of Utah was denied the benefit of
the use of the funds from the time the underlying taxes were due until the time
they were received from Petitioner.
APPLICABLE
LAW
The Tax Commission is granted the authority
to waive, reduce, or compromise penalties and interest upon a showing of
reasonable cause. (Utah Code Ann. '59-1-401(10).)
DECISION
AND ORDER
The Tax Commission finds sufficient cause
does exist to waive the penalties of $$$$$ relating to the sales tax for the
fourth quarter of XXXXX. Sufficient
cause does not exist to waive the interest.
DATED this 28 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
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.)
^^