BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0352
: 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 first quarter
of XXXXX.
3. Petitioner maintains that check XXXXX for
the entire tax amount was mailed timely with the sales tax return for the
period in question on XXXXX. XXXXX
testified under oath at the hearing that she was absolutely positive that the
check was included with the tax return.
Petitioner has in operation, and did have in operation during the period
in question, a "triple checking" system which insures that all checks
mailed by Petitioner match the reports which they accompany and that they are
mailed to the proper recipients. XXXXX
testified that she has at least two other people besides herself check each
mailing, particularly tax mailings, to ensure that the amount of the check and
the amount on the tax return match, that the check and the return are included
in the same envelope, and that the envelope is addressed correctly and mailed
timely. XXXXX testified that this did
occur in this case. Petitioner also
asserts that the check was stapled to the tax return for the period in
question.
4. During the latter part of XXXXX, Petitioner
received a Notice and Demand for Payment of Tax from the Tax Commission. Petitioner contacted the Commission offices
and was informed that the Commission had not received the check. The return was timely received but the
accompanying check was allegedly not received by the Tax Commission. Petitioner then stopped payment on the first
check and immediately sent replacement check XXXXX on XXXXX.
5. Later in XXXXX, Petitioner was contacted by
XXXXX of the Tax Commission and told that the second check had not been
received. However, Petitioner had
contacted its bank which had verified that the check had been cashed in early
XXXXX. XXXXX thereafter checked into
the matter and discovered that there had been an error in posting. The payment had not been posted to
Petitioner's account. XXXXX assured
Petitioner that she would take care of the problem.
6. In early XXXXX, Petitioner received another
notice from the Tax Commission demanding the payment of penalty and interest,
which had been assessed because of the late receipt by the Tax Commission of
the payment for the period in question.
Petitioner thereafter appealed the assessment of the penalty and
interest. By letter dated XXXXX, the
Tax Commission waived the penalty which had been assessed, but not the interest
which at the time of the letter amounted to $$$$$. Petitioner has paid this amount. Petitioner now appeals for
waiver and refund of the interest.
7. Given the above fact situation, Petitioner
maintains that the Tax Commission did receive the first check mailed with
Petitioner's timely filed tax return, but that the Tax Commission apparently
lost the check. Petitioner maintains
that Petitioner did not earn any interest on the funds in question, inasmuch as
its checking account does not bear interest.
A review of Petitioner's bank statement shows that Petitioner had
sufficient funds in the bank during the time the initial check was written to
cover the amount of 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
The
facts indicate that Petitioner did timely mail its tax payment along with the
tax return for the period in question.
Petitioner's "triple checking" system, as well as the fact
that Petitioner states that the check was stapled to the return, verifies that
both the payment and the return were submitted by Petitioner together and
timely.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which would justify a waiver of the interest associated with Petitioner's
sales tax account for the first quarter of XXXXX. The payment of interest previously made by Petitioner to the Tax
Commission is ordered to be refunded to Petitioner. It is so ordered.
DATED
this 6th day of June, 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