95-1439

Sales

Signed 2/29/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, : ORDER

:

v. : Appeal No. 95-1439

:

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 for an Initial Hearing pursuant to the provisions of Utah Code Ann. §59-1-502.5, on XXXXX. Gail Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was XXXXX. Present and representing Respondent was XXXXX.

This appeal involves penalty and interest imposed for XXXXX sales tax. Filing and payment was due XXXXX and was made XXXXX. Although the facts justify a late filing penalty and a late payment penalty, only a late payment penalty was imposed of $$$$$. Interest has accrued in the amount of approximately $$$$$.

Petitioner attributed the late filing and payment to not receiving notice from the Commission to file the December sales tax. Petitioner relies on the receipt of the return to trigger the filing of the return. Respondent indicated that the notice sent to taxpayers is a courtesy and is not the mechanism which triggers the obligation to file and pay. Petitioner was well aware of the monthly obligation to file and pay sales tax. Petitioner did not request the forms be sent, but waited seven months until notified by the Commission of non-compliance. The records of the Division indicate that this is not first time error. Respondent asserts that the circumstances asserted by Petitioner do not rise to the level of reasonable cause to justify waiver of the penalty or interest.

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 has fully reviewed the arguments presented at the hearing and considered the position of the Petitioner. 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 penalty or interest assessed for the period in issue.

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 29 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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