95-1185

Sales

Signed 2/7/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX, )

:

Petitioner, : ORDER

:

v. : Appeal No. 95-1185

:

AUDITING DIVISION OF THE : Account No. XXXXX

STATE TAX COMMISSION, :

STATE OF UTAH, :

Respondent. : Tax Type: Sales

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a Settlement Conference, and was therein converted to an Initial Hearing pursuant to the stipulation of the parties, to be heard pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner were XXXXX, a Certified Public Accountant, and XXXXX, the Controller of Petitioner. Present and representing Respondent were Mr. XXXXX and Mr. XXXXX from the Auditing Division.

The issue in this preceding is the request of Petitioner to waive the penalty and interest which were incurred on the XXXXX sales tax prepayment that is required to be paid by such date.

Petitioner operates three separate stores within the State of Utah, and has always filed its sales tax returns and paid its taxes on a timely basis. It commenced doing business in Utah in XXXXX, and it timely filed and paid the XXXXX prepayment of sales tax. For XXXXX, Petitioner timely filed and paid its XXXXX prepayment of sales tax, but in calculating the amount to be paid, it paid only 90% of the amount of the tax which was due for the month of XXXXX, and did not include 90% of the tax for the month of XXXXX.

Petitioner attributes the oversight to clerical error, and represented that it has always tried to fully comply with the law in all respects. The records of the Tax Commission indicate that the taxpayer has fully complied with the law in all prior and subsequent tax periods, and that this is the first time the taxpayer has had a problem with the Utah State Tax Commission.

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 Initial Hearing, and the records of the Tax Commission, the Commission finds sufficient cause has been shown to waive the penalty, but sufficient cause has not been shown to waive the interest assessed for the XXXXX sales tax return.

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 7th day of February, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Roger O. Tew

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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