97-1623

SPECIAL FUEL

Signed 2/17/98

BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

COMPANY A, )

:

Petitioner, ) DECISION

:

v. )

:

AUDITING DIVISION OF THE ) Appeal No. 97-1623

UTAH STATE TAX COMMISSION, :

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

:

Respondent. ) Tax Type: Special Fuel

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission pursuant to the provisions of Utah Code Ann. '59-1-502.5 A Telephone Status Conference was scheduled but was therein converted to an Initial Hearing. An Initial Hearing was held on February 5, 1998. 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 were Mr. Frank Hales and Mr. Tom Darais, from the Auditing Division.

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

FINDINGS

Respondent audited the special fuel tax records of Petitioner and determined that there was a substantial under- reporting of the tax due from special fuel. Accordingly, a penalty was imposed, together with interest on the amount due.

Petitioner acknowledges that there was a substantial under-reporting, but represents that it was because they simply did not understand how the matter should be handled. Petitioner has now attended classes conducted by the Utah State Tax Commission to help train individuals in the proper reporting for special fuel tax purposes. Petitioner further represents that they have made substantial changes in their record keeping process, and hope to avoid the problems in the future.

The error which has occurred is a first time error, and Petitioner does not have any prior delinquencies or other reporting problems.

Petitioner has paid the tax, but requests that the penalty and interest be waived.

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 Tax Commission finds sufficient cause does exist to waive the penalty associated with the special fuel tax audit, but sufficient cause does not exist to waive the interest. 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, 1998.

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, 1998.

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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