88-0705 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

Petitioner, :

v. : INFORMAL DECISION

:

COLLECTION DIVISION OF THE : Appeal No. 88-0705

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 third quarter of XXXXX. The Tax Commission decides this matter based on the file pursuant to the Administrative Procedures Act, Title 63, Chapter 46b.

Petitioner presented evidence that a check in the amount of the tax due for the third quarter of XXXXX was timely prepared, but was inadvertently mailed to the Internal Revenue Service. The IRS cashed the check and has since refunded that check. Petitioner assigned the check from the Federal Government over to the Tax Commission and asks for a waiver of the penalty and interest.

FINDINGS

Petitioner has established reasonable cause for failure to timely file the check for the third quarter of XXXXX with the State Tax Commission. The Tax Commission, in its discretion, hereby waives the penalty.

The Tax Commission finds no basis on which to waive the interest. The Tax Commission was denied the use of the money during the period of delinquency.

DECISION AND ORDER

Based on the foregoing, it is the Decision of the Utah State Tax Commission that penalty on sales and use tax account No. XXXXX for the third quarter of XXXXX be waived. Interest shall remain as originally assessed.

The Collection Division of the Utah State Tax Commission is hereby ordered to adjust its records in accordance with this decision.

DATED this 7 day of June, 1988.

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