87-1082 - Sales

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 87-1082

UTAH STATE TAX COMMISSION, : Acct. No. XXXXX

Respondent. :

_____________________________________

STATEMENT OF CASE

This is an appeal to a formal hearing from an informal decision rendered by the Utah State Tax Commission on XXXXX, which decision denied Petitioner's request for waiver of penalty and interest on sales and use tax account No. XXXXX for the XXXXX. A formal hearing was held on XXXXX in the offices of the Utah State Tax Commission. David J. Angerhofer, Hearing Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner.

Petitioner stated that the check was timely filed for the XXXXX and that he had sufficient funds in the bank at the time. Petitioner's check was drawn on the XXXXX account. Petitioner also had a second account at XXXXX. Petitioner stated that the bank had miscounted his deposits and was holding two of the Petitioner's deposits because of a counting error of the bank. The deposits were in the amount of $$$$$ and $$$$$. Petitioner stated that the bank manager admitted the error. Petitioner questioned why the Tax Commission sent the check through twice in one day. Petitioner did not have sufficient time to remedy the situation before the check was submitted the second time.

FINDINGS OF FACT

No documentation has been submitted to establish that the bank did make an error.

Petitioner wrote a check on XXXXX in the amount of $$$$$. The check is stamped "refer to maker." The bank statement from XXXXX XXXXX indicates that a special handling charge was incurred on XXXXX and on XXXXX, which dates correspond to stamps on the back of the check.

CONCLUSIONS OF LAW

The check which Petitioner prepared to pay the sales and use tax liability for the XXXXX was not honored when the Tax Commission presented it for payment. Petitioner did not timely pay the tax for the XXXXX and properly incurred a 10% penalty. There is no requirement that the Tax Commission must wait a specified number of days before resubmitting the check for payment.

The Tax Commission finds no basis on which to waive the penalty and interest on sales and use tax account No. XXXXX for the XXXXX.

FINAL DECISION

Based on the foregoing, 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 be denied.

The assessment of penalty and interest by the Collection Division of the Utah State Tax Commission is hereby affirmed.

DATED this 23 day of February, 1988.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner