90-0969 - Motor Fuel

 

BEFORE THE UTAH STATE TAX COMMISSION

_______________________________

XXXXX

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

v. : AND FINAL DECISION

: Appeal No. 90-0969

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 was XXXXX.

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 motor fuel tax.

2. The periods in question are XXXXX.

3. The Petitioner filed and paid its XXXXX gasoline tax return in a timely manner. At that time the Petitioner had a tax liability in the amount of $$$$$.

4. The Petitioner paid the October gasoline tax liability by issuing three checks: two for $$$$$ each and a third for $$$$$.

5. Of the three checks issued for the XXXXX liability, one of the $$$$$ checks was returned to the Commission due to insufficient funds in the Petitioner's account.

6. The Petitioner cleared up the XXXXX check that had been returned, but in doing so, depleted his account to the extent that when the XXXXX gasoline tax return was due, another $$$$$ check issued by the Petitioner was returned to the Commission due to insufficient funds. The same thing happened for the XXXXX return.

7. The basis for the insufficient funds was that five major accounts of the Petitioner's, whose checks had been issued to the Petitioner, did not clear, thus leaving an insufficient amount in the Petitioner's account to cover the checks made to the Tax Commission. Those five accounts were worth $$$$$. Had those accounts been current, the Petitioner would have had enough money to cover the checks to the Commission.

8. A penalty in the amount of $$$$$ per return period was assessed for the untimely payment of the returns in question.

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(A).)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds sufficient cause exists to reduce the penalty associated with the XXXXX motor fuel tax returns to an amount of $$$$$. The Commission, however, also finds that sufficient cause does not exist to waive the interest associated with those periods. 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