BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, )
: INFORMAL
DECISION
v. )
:
COLLECTION
DIVISION OF THE )
STATE TAX
COMMISSION OF UTAH, : Appeal No. 86-0207
) Account No.
XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from a decision of the Collection
Division of the Utah State Tax Commission (Respondent) to assess penalty and
interest on Account No. XXXXX for the tax year XXXXX. XXXXX (Petitioner) waived his right to an oral hearing. Therefore, the Commission decided this
matter based on the pleadings before it.
Petitioner
drew a check on his bank account to pay the taxes due for the tax year
XXXXX. Petitioner mistakenly assumed
that funds which were to be transferred to his bank account had been
transferred by the time the check was drawn.
The Tax Commission twice attempted to cash the check but it was returned
for insufficient funds on the 25th and 27th of April, XXXXX. The money was later transferred but the Tax
Commission did not send the check through again and made no further attempt to
collect until December, XXXXX.
Petitioner
asserts that it is unreasonable for the state to wait two years before trying
to collect. Petitioner asserts that the
delay by the Tax Commission directly resulted in the penalty and interest which
Respondent assessed on Petitioner's account.
Petitioner therefore requests a waiver of penalty and interest.
FINDINGS
The
burden is on a taxpayer to insure that taxes are paid and not on the Tax
Commission to second-guess the taxpayer's financial situation. It was reasonable for the Tax Commission to
conclude that Petitioner's bank account had no funds after the check had been
returned twice for insufficient funds.
The Tax Commission did not have a duty to continue presenting the check
until it finally cleared.
Petitioner
was put on notice that problems existed concerning this check when Petitioner's
bank informed Petitioner of the insufficient funds. At this time Petitioner should have contacted the Tax Commission
to inform it when the bank account would have sufficient funds or to work out
another method of payment.
Petitioner
was put on further notice each month when he received a statement of his bank
account. Each month the Petitioner
should have determined from the bank statement that the check had not cleared
yet. Petitioner should have contacted
the Tax Commission to find out why the check had not cleared. It was unreasonable for Petitioner to wait
over two years without once contacting the Tax Commission to resolve the
problem.
DECISION AND ORDER
The
Tax Commission hereby denies the Petition for waiver of penalty and interest on
Account No. XXXXX for the tax year XXXXX.
The assessment of penalty and interest by the Collection Division of the
Utah State Tax Commission is hereby sustained.
DATED
this 27 day of August, 1986.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco
Commissioner