96-2488

Sales Tax

Signed 3/28/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY B., :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2488

UTAH STATE TAX COMMISSION, :

: Account No. #####

:

Respondent. : Tax Type: Sales Tax

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act and the rules of the Utah State Tax Commission for informal proceedings. An Informal Hearing was held on March 19, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONERS REPS., Vice President of the of the Company. Present and representing Respondent was Vickie Christoffersen of the Collection Division.

Based upon the evidence in the file and presented at the Informal Hearing, the Commission makes its:

FINDINGS

This appeal involves penalties imposed for January, February, March, April, May, June, July and August of 1996 for sales tax. Penalties were imposed for late filing and late payment. The Division has already waived one period based on first time error but had inadvertently waived the wrong period, that being February. In recognition that it should have been January waived, the Division has recommended waiver of January as well, which includes a penalty of approximately $$$$$. As for the other periods, the Respondent asserts there are no reasonable cause grounds to justify waiver. Petitioner is asserting waiver on the grounds of unobtainable records. However, the situation is that an employee had left the company and no one was re-hired to keep the appropriate records or pay the taxes until September of 1996. Therefore, the unobtainable records were the result of the company’s own failure to keep the appropriate records.

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

After the thorough review of the entire matter, it has been determined that reasonable cause exists to waive January penalty but no grounds exist to waive the penalty for March, April, May, June, July or August of 1996 and no grounds exist to waive the interest since Petitioner and not Respondent had the benefit of the funds during the interim period. It is so ordered.

DATED this 28 day of MARCH, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

_____________________________

GAIL S. REICH

ADMINISTRATIVE LAW JUDGE

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 28 day of MARCH, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

W. Val Oveson Richard B. McKeown

Chairman Commissioner

Joe B. Pacheco Alice Shearer

Commissioner Commissioner

NOTICE: You have twenty (20) days after the date of a final order to file a Request for Reconsideration with the Commission. If you do not file a Request for Reconsideration with the Commission, you have thirty (30) days after the date of a final order to file a Petition for Judicial Review by trial de novo in district court. (Utah Administrative Rule R861-1A-5(P) and Utah Code Ann. §63-46b-13 et. seq.)

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