96-2090

Sales Tax

Signed 11/14/96

 

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

:

Petitioner, ) ORDER

:

v. ) Appeal No. #####

:

COLLECTION DIVISION OF THE ) Account No. #####

UTAH STATE TAX COMMISSION, :

)

Respondent. : Tax Type: Sales Tax

 

_____________________________________

 

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 October 10, 1996. Jane Phan, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was NAME. Present and representing Respondent were NAME and NAME.

Petitioner is appealing the assessment of a penalty in the amount of $$$$$ and interest of approximately $$$$$ relating to the late payment and filing of sales tax for the April 1996 period.


Petitioner's representative explained that he usually received the monthly sales tax return from the Tax Commission around the 2nd to 5th day of the month. The bill would state the due date which was either at the end of the month or the beginning of the following month, depending on weekend and holiday dates. Petitioner always places these returns in his briefcase and opens them at the end of the month. For the month in question, he opened the return at the end of the month and it said it was due on July 1, 1996. He thought that he must have been switched back to a quarterly filer and did not realize this was the return for May 1996, instead of April 1996. A few days later, he discovered a second return, the return for April 1996. Apparently, the Commission had mailed both April and May returns to the Petitioner at the same time.

When Petitioner realized that he had been mailed two returns at the same time, one for April and on for May, he immediately visited the Tax Commission office to explain the situation, filed the return and paid the taxes.

Respondent's representative stated that the Tax Commission records indicate the return was filed and taxes paid on June 7, 1996. She acknowledged that Petitioner had a good account history and had corrected the error within seven days, prior to any action on the part of the Tax Commission. For this reason, she recommended waiving the penalty. She explained to Petitioner that should this type of error occur again the penalty would probably not be waived.

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 been shown to waive the penalty of $$$$$ relating to Petitioner's sales tax for the April 1996 period. Sufficient cause was not shown for waiver or reduction of 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 14th day of November, 1996.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

 

W. Val Oveson Richard B. McKeown

Chairman Commissioner

 

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

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