89-1654 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

:

Petitioner : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : AND FINAL DECISION

: Appeal No. 89-1654

COLLECTION DIVISION OF THE :

UTAH STATE TAX COMMISSION :

: Account No. XXXXX

Respondent :

_____________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Paul F. Iwasaki, Presiding Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner were XXXXX and XXXXX.

Based upon the testimony and evidence presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is sales tax.

2. The period in question is the fourth quarter XXXXX.

3. On XXXXX, the Petitioner hosted a dinner for a social club. The club paid the Petitioner with a check in the amount of $$$$$. That check was subsequently deposited into the Petitioner's account.

4. The Petitioner timely filed its fourth quarter XXXXX sales tax return and at that time included a check for the amount of the sales tax owed.

5. When the check from the social club to the Petitioner was presented for payment, payment was refused due to insufficient funds. The dishonoring of that check led to the dishonoring of the Petitioner's check to the Commission, also due to insufficient funds in the account.

6. Petitioner testified that had the check from the social club been honored, sufficient funds in the account would have existed to cover the amount of the sales tax due.

7. As a result of the failure to timely pay the tax due, a penalty in the amount of $$$$$ was assessed against the Petitioner.

8. The amount of penalty was reduced to $$$$$ by Commission action. The Petitioner subsequently filed an appeal from that action requesting that the entire amount of penalty be waived.

9. A formal hearing in this matter was set for XXXXX, however, Petitioner failed to appear. The basis for the Petitioner's failure to appear was that the Petitioner did not receive the notice of the hearing because the notice had been mailed to an incorrect address.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient evidence has been shown which would justify a waiver of the penalty associated with the fourth quarter XXXXX sales tax. Interest is to be calculated at the statutory rate from the date the sales tax was due until the date the sales tax was received. It is so ordered.

DATED this 3rd day of May, 1990. BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner