91-0069 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________

In Re: ) FINDINGS OF FACT,

: CONCLUSIONS OF LAW,

XXXXX ) AND FINAL DECISION

: Appeal No. 91-0069

: 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 fourth quarter of XXXXX.

3. Petitioner's representative testified at the hearing that Petitioner's accountant mailed the tax return and payment in a timely manner. The envelope in which the payment and return were mailed shows that Petitioner metered the envelope on XXXXX. The post office's postmark is dated XXXXX. The postal service indicates that the return and payment could have either been lost temporarily by the post office or the post office corrected the date that had been metered erroneously by the Petitioner.

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

The penalty in this case should be waived since the metered date and Petitioner's testimony both indicate that the return and payment were mailed in a timely manner. The fact that the return was late was due to circumstances beyond the control of Petitioner. Interest, however, should not be waived since the state was deprived 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 would justify a waiver of the penalty associated with the fourth quarter of XXXXX. Interest is not waived, but shall be reduced to account for the waiver of the penalty. It is so ordered.

DATED this 12th day of April, 1991

BY ORDER OF THE UTAH STATE TAX COMMISSION.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner