97-1388

SALES

Signed 2/17/97

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, )

:

Petitioner, ) DECISION

:

v. )

:

COLLECTION DIVISION OF THE ) Appeal No. 97-1388

UTAH STATE TAX COMMISSION, :

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

:

Respondent. ) Tax Type: Sales Tax

_____________________________________

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 December 9, 1997. G. Blaine Davis, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing Petitioner was PETITIONERS REP.. Present and representing Respondent was Ms. Laurie Allred, of the Collection Division.

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

FINDINGS

Petitioner timely filed its sales and use tax return and paid the full amount of tax shown thereon to be due. However, the computer had rounded off the amount of the tax at 6.220% instead of the correct amount of 6.225%. Petitioners were aware that a manual adjustment needed to be made in the spread sheet, but forgot to make the adjustment on this return. As a result of the rounding error, Petitioner=s underpaid the amount due by $$$$$. As a result of that underpayment, penalties of $$$$$ were imposed and the vendor discount was removed in an amount of $$$$$, so that the error cost them a total of nearly $$$$$.

Petitioner requested a waiver of the penalty and reinstatement of the vendor discount. After the filing of the Petition for Redetermination, but prior to the hearing, the auditing division determined that Petitioner had a prior over-payment or credit in an amount in excess of the amount by which they had been short, so Respondents, prior to the hearing, determined there was sufficient payment on a timely basis so they have removed the penalty and reinstated the vendor discount.

DECISION AND ORDER

The Tax Commission finds that the penalty has previously been waived and the vendor discount has been reinstated, and determines that the action was appropriate and affirms that decision. To the extent the penalty was not waived, it is hereby waived, and the vendor discount is reinstated. 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 17 day of February, 1997.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

G. BLAINE DAVIS

Administrative Law Judge

The agency has reviewed this case and the undersigned concur in this decision.

DATED this 17 day of February, 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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