90-0596 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

______________________________

XXXXX

Petitioner, :

: INFORMAL DECISION

v. :

COLLECTION DIVISION OF THE : Appeal No. 90-0596

UTAH STATE TAX COMMISSION :

Respondent. : Account No. XXXXX

________________________________

STATEMENT OF CASE

This is an appeal to the Utah State Tax Commission requesting waiver of penalty and interest assessment on Petitioner's sales tax liability for the fourth quarter XXXXX. Pursuant to Utah Code Ann. §63-46b-5(1)(b,j) no hearing was held. A review of Petitioner's file served as the evidentiary basis for this decision.

Petitioner mailed the sales tax return for the period in question from the XXXXX on XXXXX. The tax return envelope, however, shows a XXXXX postmark dated XXXXX. In talking with XXXXX employees, Petitioner has gained information that when the XXXXX gets more mail than it can handle efficiently, that mail is often trucked to XXXXX to be postmarked and processed since the XXXXX does not have automated equipment. Petitioner feels that this may explain why the letter received a late XXXXX postmark rather than a timely XXXXX one.

By letter dated XXXXX from the Tax Commission, the penalty was reduced to $$$$$ from $$$$$.

FINDINGS

Utah Code Ann. §§59-l-401 and 59-l-402 provide that penalty and interest shall be assessed for the late filing and payment of taxes. Utah Code Ann. §59-l-401(8) provides that upon reasonable cause shown, the Tax Commission may waive or reduce penalty or interest assessed under the above statutes.

Such reasonable cause has been shown for waiver of the penalty and interest assessed. It appears that the return was mailed timely and the fact that it was postmarked and delivered untimely was not the fault of the Petitioner and was beyond the Petitioner's control.

DECISION AND ORDER

Based upon the foregoing facts, it is the decision and order of the Utah State Tax Commission that Petitioner's request for waiver of penalty and interest is granted.

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