SIGNED 2/23/01


                                     BEFORE THE UTAH STATE TAX COMMISSION



PETITIONER,                                                 )    

)     ORDER

Petitioner,                                 )    

)     Appeal No.      00-1173

v.                                                                     )    

)     Account No.    ######


OF THE UTAH STATE TAX                          )     Tax Type:  Sales Tax

COMMISSION,                                             )


Respondent.                             )     Judge:               Davis




G. Blaine Davis, Administrative Law Judge



For Petitioner:         PETITIONER

For Respondent:     Ms. Jan Sanchez, from the Taxpayer Services Division

Ms. Laurie Allred, from the Taxpayer Services Division

Ms. Vickie Christofferson, from the Taxpayer Services Division


                                                      STATEMENT OF THE CASE

This matter came before the Commission for an Initial Hearing on January 25, 2001 pursuant to the provisions of Utah Code Ann. '59-1-502.5.

The sales tax payment for March 2000 for Petitioner, which was to be filed electronically, was delinquent because of a returned check.  Petitioner represented that he checked with the bank after it was closed for further transactions at 2:00 p.m. on the due date, and he was told there were sufficient funds in his account to pay for the sales tax check which had been remitted.  However, when the check was to be cleared during the following day's transactions, there were not sufficient funds in the account because of other checks which had also been presented.  Petitioner has therefore alleged that there was a bank error, and has requested that the penalty be waived.

Petitioner has other delinquencies for February 1997, March 1997, August 1997, December 1998, February 1999, and January 2000.  Most of those delinquencies were for very short periods, including one which was only five minutes late.

It appears that Petitioner made a good faith effort to try to get the taxes paid for March 2000, but there is too large of a pattern of prior delinquencies for the Commission to find that it can waive the penalties on this matter.

                                                              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

Based upon the foregoing, the Commission finds that sufficient cause has not been shown to justify a waiver of the penalty associated with the March 2000 sales tax return.  It is so ordered.

This decision does not limit a party's right to a Formal Hearing.  However, this Decision and Order will become the Final Decision and Order of the Commission unless any party to this case files 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, Utah  84134

Failure to request a Formal Hearing will preclude any further appeal rights in this matter.

DATED this   23rd  day of   February  , 2001.



G. Blaine Davis

Administrative Law Judge



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

DATED this   23rd   day of   February  , 2001.



Pam Hendrickson                                                                     R. Bruce Johnson

Commission Chair                                                                    Commissioner