90-0083 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

COLLECTION DIVISION OF THE : Appeal No. 90-0083

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. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX. No one appeared representing the Respondent.

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

FINDINGS OF FACT

1. The tax in question is sales and use tax.

2. The period in question is the first quarter of XXXXX.

3. The penalty and interest assessed on this account was the result of a mistake on the part of Petitioner's bank. Petitioner had sufficient funds in the bank account at the time the check was presented for payment of his sales tax for the period in question, but the bank, due to a "communications problem," returned the check for insufficient funds.

Based upon these facts, Petitioner requests a waiver of the interest in this case. The waiver of the penalty was previously granted by a letter from the Tax Commission dated XXXXX.

CONCLUSIONS OF LAW

1. Utah Code Ann. §§59-1-401 and59-1-402 provide that penalty and interest shall be assessed for the late payment and filing of taxes.

2. 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).)

3. Such reasonable cause has not been shown for waiver of the interest assessed in this case. The penalty has already been waived. The interest should not be waived since the state was deprived of the use of the tax funds in question between the time they should have been paid and the time they were paid, and the State should be compensated for that loss of use.

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds that sufficient cause has not been shown which would justify a waiver of the interest associated with the first quarter of XXXXX. It is so ordered.

DATED this 8 day of August, 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