BEFORE THE UTAH STATE TAX COMMISSION
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No. 90-1445
: Account No. XXXXX
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 were XXXXX and 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 sales tax.
2. The period in question is the third quarter of XXXXX.
3. Petitioner completed and mailed its sales tax return and included with it Petitioner's check number XXXXX in the amount of the tax in question on XXXXX. Petitioner's representative, XXXXX, testified that she personally mailed the tax return and check timely and that she ran it through Petitioner's mail meter and put it with Petitioner's other mail to be processed that day.
4. In XXXXX, Petitioner became aware that check number XXXXX had not been cashed and immediately contacted the Tax Commission. This was before any action by the Tax Commission to collect the delinquent taxes. Petitioner was informed that the Tax Commission did not have record of the payment being received. Petitioner does not know why the payment was not received since Petitioner had mailed it timely. Immediately after contacting the Tax Commission, Petitioner placed a stop payment order on check number XXXXX and thereafter issued check number XXXXX for the tax amount and immediately remitted the same to the Tax Commission with a copy of the return for the period in question.
5. Petitioner requests that all penalty and interest charges be waived since the misplacement of Petitioner's original return and check was an occurrence beyond Petitioner's control.
6. By letter dated XXXXX, the Tax Commission reduced the penalty amount from $$$$$ to $$$$$.
7. Petitioner has submitted a bank statement covering the time period during which the original check number XXXXX was issued, which shows that Petitioner had sufficient funds in its checking account to cover that check.
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
Since the circumstances which led to the untimely payment were beyond Petitioner's control, the waiver of the penalty is appropriate. 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 through no fault of its own and should be compensated for that loss of use.
Based upon the foregoing, the Tax Commission finds that sufficient cause has been shown which would justify a waiver of the penalty associated with the third quarter of XXXXX. Interest shall be adjusted to account for waiver of the penalty. It is so ordered.
DATED this 8th day of February, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis