BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
90-1448
: 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 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 sales tax.
2. The period in question is the third quarter
of XXXXX.
3. Petitioner timely filed and paid its sales
taxes for the period in question. Upon
receipt of the payment, the Tax Commission deposited the check.
4. Petitioner's bank refused to honor the check
due to insufficient funds, although a deposit sufficient to cover the amount of
the check was made on the same day the check was refused.
5. Petitioner has established a revolving line
of credit at its bank so that if checks are presented which would ordinarily
make an overdraft on Petitioner's checking account, the line of credit is
utilized to cover the check for Petitioner.
The newly employed bank vice president on the day this first check from
Petitioner was presented for payment was unaware of this procedure and,
therefore, he directed the check to be returned for insufficient funds. The check has since been lost.
6. A review of Petitioner's bank statement and
letters from Petitioner's bank confirm the facts as presented above by
Petitioner.
7. Based on these facts, Petitioner requests
that penalties assessed for the period in question be waived.
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 check normally would have been honored by the bank, and due to the fact
that it was a bank error due to no fault of the Petitioner's and was beyond
Petitioner's control, the Tax Commission finds that the penalty should be
waived.
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 the 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
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner