97-0514

SALES

Signed 12/30/97

 

 

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

 

COMPANY C, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0514

UTAH STATE TAX COMMISSION, :

STATE OF UTAH, ) Account No. #####

:

Respondent. ) Tax Type: Sales Tax

 

_____________________________________

 

IMPORTANT NOTICE: On October 7, 1997 the Utah Supreme Court, in Evans and Sutherland Computer Corp v. Utah State Tax Commission, invalidated the informal adjudicative process by disallowing trial de novo to the District Court. Therefore, your appeal is now being processed as a formal adjudicative proceeding. Under this process, you are entitled to an additional right. Utah Law allows for an Initial Hearing before the matter is heard on the record in a formal proceeding. Therefore, the hearing held in this matter will constitute the Initial Hearing. Please note in the body of the decision your right to, and the method of request, for a formal hearing.

 

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5 An Initial Hearing was held on July 3, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present by telephone and representing Petitioner was PETITIONER. Present and representing Respondent Thomas Smith, of the Collection Division.

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


FINDINGS

This appeal involves sales tax for July through September of 1996. The return was due October 30, 1996. It was filed timely but paid January 10, 1997. Petitioner has provided documentation to support the allegation of bank error having caused the problem. Based on that documentation, the Division has recommended waiver of the late payment penalty of $$$$$. No reasonable cause exists to waive the interest since the interest is simply a reflection of the fact that the taxpayer and not the Tax Commission had the benefit of the funds during the interim period.

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, it has been determined that sufficient cause does exist to waive the penalty but not the interest associated with the period in issue. It is so ordered.


This Decision does not limit a party=s right to a Formal Hearing. Any party to this case may file 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, UT 84134

 

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this 30 day of December, 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 30 day of DECEMBER, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

 

W. Val Oveson Richard B. McKeown

Chairman Commissioner

 

Joe B. Pacheco Pam Hendrickson

Commissioner Commissioner

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