96-2184

Sales

Signed 12/17/96

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : ORDER

:

v. : Appeal No. 96-2184

:

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

UTAH STATE TAX COMMISSION, :

:

Respondent. : Tax Type: Sales

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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 MMDDYY. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REP.. Present and representing Respondent were XXXXX and XXXXX from the Collection Division.

This appeal involves sales tax for the fourth quarter of 19YY and the second quarter of 19YY. Petitioner is requesting waiver of penalty and interest for these periods. Late filing and payment penalties for the fourth quarter were imposed in the amount of $$$$$ with interest having accrued in the amount of approximately $$$$$. For the second quarter of 19YY, $$$$$ of penalty were imposed with interest having accrued in the amount of approximately $$$$$. The Petitioner filed and paid the tax on MMDDYY. Petitioner indicated that this problem arose from reliance on an incompetent bookkeeper. The record shows that this was a first error on an otherwise clean record.

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 been shown to waive the penalty for the periods in issue. No grounds exist to waive the interest since the Petitioner and not the Respondent had the benefit of the funds until ultimate payment. The Respondent is instructed to recalculate the interest in light of the penalty being waived.

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 17th day of December, 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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