97-0564

SALES

Signed 6/30/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-0564

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 adjudicative proceeding. A hearing was held on June 11, 1997. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was PETITIONER REP.. Present and representing Respondent were Tom Smith and Linda Carter of the Collection Division.

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

FINDINGS

This appeal involves the third and fourth quarters of 1995 for sales and transient room tax. During the period in issue, the Petitioner was leasing the property and discovered that the taxes had not been taken care of in a proper fashion. Petitioner contacted the Tax Commission for a complete evaluation of the amount due and owing so that she could cover the amount. A Tax Commission employee gave the Petitioner the full amount due and owing for the fourth quarter of 1995 including tax penalty and interest, but only gave the amount of tax for the third quarter and not the amount of penalty and interest. Petitioner had secured a deposit from the lessee to cover the amounts and used the amount to pay the amount that she was told was due and owing by the Tax Commission employee. Subsequent to returning the excess amount to the lessee, the Tax Commission contacted Petitioner to say there was an additional amount due of penalty and interest on the third quarter. No funds remained to pay that amount. Since Petitioner paid the amount she was directed to pay by the Tax Commission employee and the fact that the additional penalty and interest was not included resulted from Tax Commission error in the representation made to the Petitioner, it has been determined that the penalty of $$$$$ and the interest of $$$$$ on the third quarter remains outstanding as a result of Tax Commission error.

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 foregoing, it has been determined that sufficient cause does exist to waive the penalty and interest on the third quarter for 1995 sales and transient room tax. It is so ordered.

DATED this 30 day of JUNE, 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 JUNE, 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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