97-0718
SALES
Signed 1/27/98
BEFORE THE UTAH STATE TAX
COMMISSION
____________________________________
COMPANY A, )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION
OF THE ) Appeal
No. 97-0718
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 September 18,
1997. Gail S. Reich, Administrative Law
Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner was
PETITIONER. Present and representing
Respondent were XXXXX and XXXXX, of the Collection Division.
Based upon the
evidence in the file and presented at the hearing, the Commission makes its:
FINDINGS
This appeal
involves second quarter of 1996. Late
payment penalty was imposed in the amount of $$$$$ and approximately $$$$$ of
interest has accrued. Petitioner
indicated that the initial waiver request involved the first and second quarter
of 1996, and was based on a medical condition that had incapacitated the
Petitioner. The Division had waived the
first quarter but not the second.
After a review of the situation it has been determined that the medical
condition was responsible for the late payment for both quarters and justifies
waiver of the penalty for both quarters.
Since the problem was not the result of Tax Commission error and since
the Petitioner and not the Tax Commission had the benefit of the funds during
the interim period, no grounds exist to waive the interest.
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 ________ day
of ____________, 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 27 day
of January, 1998.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^