97-1328, 97-1538
INSURANCE PREMIUM
Signed 2/23/98
BEFORE THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY A, )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION DIVISION OF
THE ) Appeal
No. 97-1328, 97-1538
UTAH STATE TAX
COMMISSION, :
STATE OF UTAH, ) Account
No. #####
:
Respondent. ) Tax
Type: Insurance Premium
_____________________________________
STATEMENT OF CASE
This matter came before
the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5 Initial Hearings were held on November 6,
1997 and February 12, 1998. Gail S.
Reich, 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 were Mr. Frank Hales and Ms.
Julie Jones, from the Auditing Division.
Based upon the evidence
in the file and presented at the hearing, the Commission makes its:
FINDINGS
These appeals involve the
1993, 1994 and 1995 tax years. Audits
were conducted for the years in issue and negligence penalties were imposed for
failure to calculate the insurance premium tax on a proper basis. Although audits were not conducted during
the identical time frame the Division was requesting information for the 1994
and 1995 audit while the 1993 audit was going on and prior to the issuance of
the preliminary notice on the 1993 year.
The circumstances led Petitioner to believe that the audits were being
conducted as a unit. This problem
constitutes first time error for the Petitioner. Subsequently, Petitioner has been in full compliance.
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 and the positions of both parties, it has been determined
that the circumstances are sufficient to justify waiver of the penalties
imposed for the periods in issue.
Petitioner was requesting originally waiver of interest for the 1993
year but in discussions for the 1994 and 1995 years, Petitioner became aware
that interest was not placed on the penalty and has removed the request for
waiver of interest. In any event, no
grounds exist to constitute grounds for waiver of the interest since the
interest simply reflects that the Petitioner and not the Tax Commission had the
benefit of the funds during the interim period between the actual due date and
the ultimate payment. 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 23 day of
February, 1998.
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 23 day of
February, 1998.
BY ORDER OF THE UTAH
STATE TAX COMMISSION.
W. Val Oveson Richard B. McKeown
Chairman Commissioner
Joe B. Pacheco Pam Hendrickson
Commissioner Commissioner
^^