97-1179
Sales Tax
____________________________________
COMPANY A, :
:
Petitioner, : ORDER
:
v. : Appeal No. 97-1179
:
COLLECTION
DIVISION OF THE : Account No. #####
UTAH STATE TAX COMMISSION, :
:
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 proceedings. An Informal
Hearing was held on August 6, 1997.
Jane Phan, Administrative Law Judge, heard the matter for and on behalf
of the Commission. Present and
representing Petitioner were PETITIONERS REP.,XXXXX. Present and representing Respondent was RESPONDENT REP.
Petitioner
is appealing the assessment of penalties totaling $$$$$, relating to sales and
tourism tax for the October 1996 filing period. A portion of these penalties, in the amount of $$$$$, had been
assessed after the original penalty assessment and Respondent could provide no
explanation as to why this additional amount was assessed. Interest of approximately $$$$$ had also
been assessed but Petitioner does not contest the interest since the payment at
issue was late.
Petitioner's
representatives explained that the form had been mailed timely for the October
1996 period. However, an employee
incorrectly key punched in the wrong withdrawal date for the Electric Funds
Transfer (EFT). They explained that the
employee who generally made the tax payments was out on maternity leave during
the period in question. She had trained
another employee on how to make the EFT payments prior to the maternity leave
but this new employee quit unexpectedly during the maternity leave. A third employee prepared the filing and
incorrectly keyed in the EFT payment.
Petitioner's representatives felt that this constituted unavoidable
absence. They also stated that the
amount of the penalties was unreasonable.
Respondent's
representative explained that he had to follow the reasonable cause guidelines
and that this situation did not specifically meet any of the reasonable cause
criteria. He said that Petitioner had
delinquencies for periods prior to the period at issue so this was not a case
of first time error. He said that
Petitioner's payment history was reasonably good.
APPLICABLE LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(10).)
DECISION AND ORDER
The
Utah Legislature has provided for significant penalties to encourage compliance
with tax deadlines. These statutory
penalties are routinely and uniformly assessed upon late filing or payment of
taxes.
After
reviewing the information presented by the parties the Tax Commission
determines that the situation as described by Petitioner does not meet the
reasonable cause criteria for waiver of penalties. Based upon the information presented at the hearing, and the records
of the Tax Commission, the Commission finds sufficient cause has not been shown
to waive the penalties of $$$$$ or the interest relating to sales and tourism
tax for the October 1996 filing period.
However, the $$$$$ penalty which apparently had been assessed later and
for which Respondent had no explanation is waived. It is so ordered.
DATED
this 15 day of SEPTEMBER, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
_____________________________
Jane Phan
Administrative Law
Judge
The
agency has reviewed this case and the undersigned concur in this decision.
DATED this 15 day of
SEPTEMBER, 1997.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val
Oveson Richard
B. McKeown
Chairman Commissioner
Joe B.
Pacheco Pam
Hendrickson
Commissioner Commissioner
^