97-1631
SALES
Signed 2/24/98
BEFORE
THE UTAH STATE TAX COMMISSION
____________________________________
COMPANY
C, )
:
Petitioner, ) DECISION
:
v. )
:
COLLECTION
DIVISION OF THE ) Appeal No. 97-1631
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 January 29,
1998. G. Blaine Davis, Administrative
Law Judge, heard the matter for and on behalf of the Commission. Present on the telephone and representing
Petitioner were PETITIONERS REP. and PETITIONERS REP.2. Present and representing Respondent were Ms.
Laurie Allred and Ms. Linda Pringle, from the Collection Division.
Based upon the evidence
in the file and presented at the hearing, the Commission makes its:
FINDINGS
Petitioner was late filing
its sales tax returns for the first quarter 1996, second quarter 1996, and July
1996 when it was converted to a monthly filer.
The penalty was waived for the first quarter of 1996, because it was the
first time error, but it has not been waived for the second quarter 1996 or
July 1996. Respondent has recommended a
waiver for July 1996 because it was the first month they were a monthly filer.
Petitioner alleges two
separate reasons for their problem.
First, Petitioner purchased 11 new companies and started four new
distribution centers, which included 30 brand new distribution locations which
had not existed for their sales tax reporting prior to that time period. It also caused their revenues to increase by
a total of 70%, so the business was greatly increased.
The second reason given
is that there was an employee who was responsible for filing the returns who
was going through a divorce at that time and not properly completing the
assignments. In addition, that employee
was hiding the information from management, and they believe that the employee
was intentionally destroying records to hide the problems from management.
Petitioner represents
they have now hired a compliance manager to see that the tax returns are
properly filed, and claim that it will not happen again. Immediately they began to do everything they
could to resolve the problem and get it taken care of, and that it was not a
problem of management, but a problem of a single employee who was experiencing
traumatic personal problems.
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 for the second quarter 1996
and for July 1996 for their sales tax returns.
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 24 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 24 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
^^