95-0500
Sales Tax
Signed 6/21/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 95-0500
:
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 by telephone conference call
was XXXXX. Present and representing
Respondent was XXXXX.
Penalties
of $$$$$ and interest of approximately $$$$$ were assessed against Petitioner
relating to sales tax for the XXXXX filing period. Petitioner had requested waiver of the penalties and interest
from the Collection Division Waiver Unit which was denied.
At
the conference Petitioner explained that several events had occurred which made
him unable to file the sales tax at issue on time. He stated that, because he had become ill with pneumonia during
the last part of XXXXX, he was covering for an employee who quit and the
interruption of the XXXXX holidays, he was unable to mail the tax and the
return until XXXXX, a few days late.
Petitioner provided a receipt from his doctor which supported his
position.
Respondent
stated that the Tax Commission records indicated that the payment had not been
received by the Tax Commission until XXXXX.
However, Respondent stated that since this was a first time error which
was caught and corrected by the Petitioner prior to any action from the Tax
Commission the Petitioner had shown sufficient reasonable cause for waiver of
the penalties. Respondent would not
recommend waiver of the interest because the error was on the part of the
Petitioner and not a Tax Commission
employee.
In
considering Petitioner's request for waiver or reduction of the interest the
Tax Commission applies more stringent reasonable cause standards because
Petitioner continued to enjoy the benefit of the use funds and the State of
Utah was denied the benefit of the use of the funds from the time the
underlying taxes were due until they were actually paid by Petitioner.
DECISION AND ORDER
Based
upon the information presented at the conference, and the records of the Tax
Commission, the Commission finds sufficient cause has been shown to waive the
penalties of $$$$$ assessed relating to sales tax for the XXXXX filing
period. 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 21st day of June, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^