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
Joe B. Pacheco G. Blaine Davis