BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
Petitioner, :
v. : INFORMAL DECISION
:
COLLECTION DIVISION OF THE : Appeal No. 86 1550
STATE TAX COMMISSION OF UTAH, ) Acct. 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 sales and use tax account No. XXXXX for the period XXXXX. An Informal Hearing was held on XXXXX, in
the offices of the Utah State Tax Commission.
David J. Angerhofer, Hearing Officer, heard the matter for the
Commission. XXXXX represented the
Petitioner.
Respondent
assessed a penalty of $$$$$ and interest of $$$$$ as of XXXXX, on a tax due of
$$$$$ for the fourth quarter of XXXXX. Petitioner paid the $$$$$ tax liability
to the Utah State Tax Commission on or about XXXXX. Petitioner requested a waiver of the penalty and interest,
asserting that he was not notified until XXXXX that the original check issued
for the fourth quarter of XXXXX had not cleared.
FINDINGS
Petitioner
filed a return for the fourth quarter of XXXXX on XXXXX. Petitioner's check for the fourth quarter of
XXXXX did not clear the bank.
The
sales and use tax for which Petitioner was liable had the effect of a judgment
against him. Utah Code Ann. §59-10-1
(1953). The statutory due date upon
which a return for sales and use tax is due is the date on which entry of
judgment occurs. In this case, since
the period in question is the fourth quarter of XXXXX, the return was due on
XXXXX.
A
judgment is enforced by the issuance of a writ of execution within eight years
after the entry of judgment pursuant to Utah R. Civ. P. 69(a). Respondent had
eight years from this date in which to enforce the judgment. In addition, the time for enforcement of
judgment is extended if the statute is tolled.
The eight year period in the present case was tolled from XXXXX, until
XXXXX, during which period Petitioner was in bankruptcy.
A
warrant docketed with the clerk of the district court has the force and effect
of an execution. Utah Code Ann.
§59-15-11 (1953). Respondent timely
issued a warrant in the amount of $$$$$ on XXXXX, for the period XXXXX.
A
judgment may be renewed prior to the expiration of the eight year period by
filing a new warrant within this period.
However, Respondent did not file another warrant until XXXXX, well
beyond the period which included the eight year statute of limitations and the
time during which Petitioner was in bankruptcy. Therefore, Respondent may not collect the penalty and interest on
this account for the fourth quarter of XXXXX.
DECISION AND ORDER
It
is the Decision and Order of the Utah State Tax Commission that Petitioner's
request for waiver of penalty and interest on sales and use tax account No.
XXXXX for the fourth quarter of XXXXX be granted.
The
Collection Division of the Utah State Tax Commission is hereby ordered to
adjust its records in accordance with this decision.
DATED
this 11 day of March, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B. Pacheco G.
Blaine Davis
Commissioner Commissioner