97-0128

SALES

Signed 5/1/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, )

:

Petitioner, ) DECISION

:

v. ) Appeal No. 97-0128

:

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

UTAH STATE TAX COMMISSION, :

)

Respondent. : Tax Type: Sales & Withholding

_____________________________________

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 adjudicative proceedings. As provided for by Utah Code Ann. '63-46b-5, this decision is being based solely upon the documentary evidence or record contained in the Tax Commission's file.

FINDINGS

This appeal involves late payment and late filing penalties for sales tax for first, second and third quarters of 1996 and withholding tax for June of 1996 and September of 1996. The penalties for the sales tax for first quarter 1996 were $$$$$; for sales tax for second quarter 1996 were $$$$$; for sales tax for third quarter 1996 were $$$$$; the penalties for withholding for June 1996 were $$$$$ and for September 1996 were $$$$$. The record shows that there were numerous penalties imposed prior to the periods in issue and this does not constitute first time error for the Petitioner. Financial hardship, which is the basic grounds upon which Petitioner is relying, does not constitute reasonable cause under Tax Commission criteria for waiving penalties and interest. There is a separate and distinct procedure, referred to as offer in compromise, which is available to taxpayers in terms of dealing with a financial hardship.

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

The matter has been fully reviewed and it has been determined that sufficient cause does not exist to waive thepenalties or interest associated with the tax periods in issue. It is so ordered.

DATED this 1 day of MAY, 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 1 day of MAY, 1997.

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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