BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
:
Petitioner, )
: DECISION
FROM
v. ) INFORMAL HEARING
:
AUDITING
DIVISION OF THE )
UTAH STATE TAX
COMMISSION, : Appeal No. 85-0131
)
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an appeal from a decision of the Utah State Tax Commission denying a request
for waiver of penalty and interest on the Petitioner's XXXXX fourth quarter
sales tax liability. The Utah State Tax
Commission designated Roger O. Tew, Commissioner, as Hearing Officer for the
Informal Hearing held on XXXXX.
Appearing on behalf of the Petitioner was XXXXX, accountant for the
Petitioner, XXXXX.
A
review of the evidence presented at the hearing indicates the following:
l.
The Petitioner remitted his quarterly sales tax payment to the State of Utah
with a check dated XXXXX.
2.
On XXXXX, a restraining order was placed on the Petitioner's account as part of
a criminal investigation involving the Petitioner's business.
3.
Due to the imposition of the restraining order, the Petitioner's bank returned
his tax payment check unpaid. The
bank's records clearly indicate the funds were available to cover the check had
the restraining order not been in place.
4.
The restraining order was lifted XXXXX.
However, the Petitioner's accountant did not notice the discrepancy
until XXXXX, when he was notified by the Tax Commission of the imposition of
the penalty.
5.
The account in which the Petitioner's funds were held was a non-interest
bearing business account.
CONCLUSION
1.
The Petitioner is responsible to remit sales tax obligations in a timely
fashion and to ensure that adequate funds are available to cover tax
payments. Circumstances in this case are
unusual, and indicate that the Petitioner was not totally responsible for
non-payment.
2.
The Petitioner did not have the use of the sales tax money during the time in
question since it was held by the restraining order in a non-interest bearing
account.
The
decision of the Utah State Tax Commission denying the waiver of the penalty is
hereby modified and waive the interest and reduce penalty to $$$$$.
DATED
this 20 day of January, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
Mark K.
Buchi Joe
B. Pacheco *
Chairman Commissioner
R. H. Hansen Roger
O. Tew
Commissioner Commissioner
*Since
the hearing on this case, Commissioner Gary
C. Cornia has been replaced by Commissioner Joe B. Pacheco. Commissioner Pacheco has been duly advised
of the facts and circumstances regarding this case and is qualified to sign
this decision.