BEFORE THE UTAH STATE TAX COMMISSION
v. : INFORMAL DECISION
: Appeal No. 90-1391
COLLECTION DIVISION OF THE :
UTAH STATE TAX COMMISSION, :
: Account No. XXXXX
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission requesting a waiver of a penalty and interest assessment on Petitioner's sales and use tax for the tax year 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 states that the return and payment were mailed by XXXXX. The postage stamp apparently fell off the envelope and Petitioner did not include a return address since the envelope was prestamped with the Tax Commission's address. Petitioner does not recall the date when Petitioner finally received the letter back from the post office's dead letter file in XXXXX. Petitioner states that upon receiving it from the XXXXX post office, she immediately mailed it to the Tax Commission. Petitioner has a good past history of timely filing and payment of taxes.
Utah Code Ann. §§59-1-401 and59-1-402 provide that penalties and interest shall be assessed for late filing and payment of taxes. Utah Code Ann. §59-1-401(8) provides that the Tax Commission may upon reasonable cause shown waive or reduce the penalties and interest assessed under these statutes.
Such reasonable cause has been shown for waiver of the penalty in this case. The fact that the postage stamp fell off the envelope was a circumstance beyond Petitioner's control, although it certainly would have lessened the problems if Petitioner had included a return address on the envelope. In any case, under the circumstances as outlined by Petitioner, the return and payment were mailed in a timely manner and, therefore, penalty should be waived. Interest, however should not be waived since the state was deprived of the use of the tax funds in question for a period of time and should be compensated for that loss of use.
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 is granted. Waiver of interest is denied. It is so ordered.
DATED this 12th day of September, 1990
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis