BEFORE THE UTAH STATE TAX COMMISSION
Petitioner : FINDINGS OF FACT,
: CONCLUSIONS OF LAW
v. : AND FINAL DECISION
: Appeal No. 89-1298
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION :
: Account No. XXXXX
STATEMENT OF CASE
This matter came before the Utah State Tax Commission pursuant to the Administrative Procedures Act for a formal hearing on XXXXX before Joseph G. Linford, Presiding Officer. Petitioner was represented by XXXXX. No one representing the Respondent appeared at the hearing.
After reviewing the evidence and arguments of the parties in the record and the recommendation of the presiding officer, the Tax Commission hereby makes its:
FINDINGS OF FACT
1. The tax in question is sales tax.
2. The period in question is the last quarter of XXXXX.
3. Petitioner filed its sales tax return for the period in question on XXXXX along with its check No. XXXXX for the tax amount. This check was not honored by the bank due to insufficient funds.
4. On XXXXX, Petitioner received notification from its bank that there was a shortage of funds in its account. Petitioner subsequently made a deposit and kept sufficient funds in the account for the rest of the month under the assumption that the Tax Commission would attempt to deposit Petitioner's check No. XXXXX again.
5. On XXXXX, Petitioner discovered that its check No. XXXXX was still outstanding. Petitioner called the Tax Commission and was told to send in another check and a copy of its return. Petitioner sent in another payment (check No. XXXXX) for the amount due. This check cleared Petitioner's bank on XXXXX.
6. Due to the above circumstances, Petitioner was assessed penalties and interest for late payment of sales tax.
7. Petitioner now asks for a waiver of at least a portion of the penalties and interest on the grounds that Petitioner's original check could have been redeposited by the Tax Commission, but according to Petitioner it was not deposited because it was misplaced by the Tax Commission which caused Petitioner's account to be delinquent for two months.
CONCLUSIONS OF LAW
1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for late filing and payment of sales tax.
2. Utah Code Ann. §59-1-401(8) provides that the Commission may upon reasonable cause shown waive some or all of the penalties and interest assessed under the above statutes.
3. Such reasonable cause has not been shown in this case. It is Petitioner's responsibility to ensure that sufficient funds are in its account at the time taxes are paid. It is not the Tax Commission's responsibility to continually attempt to redeposit checks that are dishonored. Although Petitioner feels that the penalties and interest charged in this case are exorbitant due to the circumstances, those penalties are only assessed according to law and Petitioner has not shown sufficient cause for waiver of the penalties and interest.
DECISION AND ORDER
Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalties and interest be denied.
DATED this 21st day of March, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis