95-0686
Sales &
Use
Signed 9/22/95
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
XXXXX, )
:
Petitioner, : ORDER
:
v. : Appeal No. 95-0686
:
AUDITING
DIVISION : Account No. XXXXX
OF THE UTAH
STATE, :
TAX COMMISSION, :
Respondent. : Tax Type: Sales & Use
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for an Initial Hearing
pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Commissioner Alice Shearer, heard the matter for and on behalf of the
Commission. Present and representing
Petitioner by telephone was XXXXX.
Present and representing Respondent were XXXXX and XXXXX from the
Auditing Division.
XXXXX
is appealing for a waiver of the interest charged on an audit for the period
XXXXX. XXXXX indicates that they had a
misunderstanding about the manufacturing exemption and its applicability to
them and they purchased spare parts for the machinery that had been purchased
using the manufacturing exemption. They
now understand that the spare parts do not qualify for the exemption. Because
this error was unintentional, XXXXX now asks that the interest be forgiven.
Respondent
noted that no penalty was imposed with this audit as would be the case if the
error was intentional.
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
Based
upon the information presented at the hearing, and the records of the Tax
Commission, the Commission finds sufficient cause has not been shown to waive
the interest assessed on the XXXXX audit.
Interest was charged based upon the lost opportunity cost to the State,
had the tax been remitted timely.
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 22nd day of September, 1995.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco Alice
Shearer
Commissioner Commissioner
^^