95-1844

Sales

Singed 5/14/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

XXXXX,

Petitioner, ) ORDER

:

v. ) Appeal No. 95-1844

:

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 were XXXXX and XXXXX. Present and representing Respondent were XXXXX and XXXXX.

This appeal involves a request for waiver of penalty and interest regarding the fourth quarter sales tax of XXXXX and the first, second and third quarters of sales tax for XXXXX. The Division has already waived the penalty imposed for the fourth quarter of XXXXX based on first time error. The penalties that remain are for late filing and late payment for the first quarter of XXXXX in the amount of $$$$$, late filing and late payment for the second quarter of XXXXX in the amount of $$$$$, and late filing and late payment for the third quarter of XXXXX in the amount of $$$$$.

The representatives at the hearing are employees of Petitioner but were not employees at the times in issue. The representatives indicated that the problem may have arisen from incompetence of prior employees.

Respondent asserts that Petitioner has not provided any circumstance which would indicate that the penalties were not properly assessed or which would rise to the level of reasonable cause to justify waiver of the remaining penalties. As for the interest, the fact remains that Petitioner enjoyed the benefit of the funds until payment was actually made to the 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 hearing, and the records of the Tax Commission, the Commission finds sufficient cause has not been shown to waive the penalties or interest assessed for the periods 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 14 day of May, 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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