98-0128

Special Fuel

Signed 7/13/98

 

\BEFORE THE UTAH STATE TAX COMMISSION

____________________________________

PETITIONER, :

:

Petitioner, : DECISION

:

v. :

:

AUDITING DIVISION OF THE : Appeal No. 98-0128

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 An Initial Hearing was held on April 27, 1998. Gail S. Reich, Administrative Law Judge, heard the matter for and on behalf of the Commission. Present and representing Petitioner by telephone was NAME. Present and representing Respondent were Mr. Frank Hales and Ms. Julie Jones, of the Auditing Division.

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

FINDINGS

This appeal involves a 10% failure to file penalty and a 10% negligence penalty, each for $$$$$. Petitioner went into business with his first gas station and used jobbers who, for the first five months, were paying the tax to the Tax Commission. The Division acknowledged that this was not the proper format, but payment was made properly and no assessment or penalty was imposed for that period. After the five month period when Petitioner changed jobbers, he became aware of the need to fill out the forms and began inquiry to the processes regarding the proper forms and the proper procedure. It was a long process before he was able to obtain the right forms. Once Petitioner was able to obtain the right forms and properly process the paperwork, the matter was resolved and the tax was remitted, accompanied by the proper forms.

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 this falls within the criteria of first time error and reasonable cause does exist to waiver of the penalties. 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 13 day of July, 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 13 day of July, 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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