96-2571

Sales Tax

Signed 3/28/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, :

:

Petitioner, : INFORMAL DECISION

:

v. :

:

COLLECTION DIVISION OF THE : Appeal No. 96-2571

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 REP.. Present and representing Respondent was Richard Evans.

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

FINDINGS

This case involves a refund request for penalty and interest for sales tax in 1994 and 1995 years. For 1994, $$$$$ of penalty was imposed for late payment with interest having accrued in approximately the amount of $$$$$. For 1995, penalty for late payment was imposed in the amount of $$$$$ with approximately $$$$$ of interest. Petitioner timely filed a return for the 1994 year showing $$$$$ of tax due. Petitioner amended the return in July of 1996 showing $$$$$ due. The amount was paid in August of 1996. For 1995 year Petitioner timely filed a return showing $$$$$ tax due. Petitioner amended in return in July of 1996 showing $$$$$ due. The amount was paid October 8, 1996.

Petitioner asserts that the discrepancy in the original return and the amended return is the result of being unclear as to the sales tax laws and who needs to pay. Petitioner based the waiver request on reliance on competent tax advice. However, Respondent asserts that Petitioner has shown absolutely no evidence of any reliance on competent tax advice.

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 a thorough review of the entire matter and the position of both parties, it has been determined that sufficient cause does not exist to waive either the penalties or the interest associated with the 1994 and 1995 sales tax years. 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.)

^^