BEFORE THE UTAH STATE TAX COMMISSION
____________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
:
: Appeal No.
91-0532
: Account
No. XXXXX
_______________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Alan Hennebold, 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 XXXXX through
XXXXX.
3. The Petitioner filed its sales tax return
for the period in question in a timely fashion and included payment of the tax
due by check. Petitioner's check failed to clear the bank. Petitioner had a relationship with its bank
by which the bank would advise Petitioner if its account held insufficient
funds to pay checks that had been presented for payment. Petitioner would then deposit sufficient
funds to cover such checks. However, at
the time the sales tax check was presented to the bank, a new bank employee
failed to notify Petitioner of the need for additional funds, and instead
returned the check to the Commission.
The Petitioner was not advised by the Tax Commission until four months
had passed that its check had been returned.
4. As a result of the foregoing, a non payment
penalty of $$$$$ was assessed, together with associated interest. All but $$$$$ of that penalty has previously
been waived.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
In
the present case, the Petitioner has established that it filed its sales tax
return in a timely manner and had the means by which to pay its liability. Due to unforeseen circumstances the
Petitioner's check was dishonored by its bank.
When notified of the deficiency, the Petitioner immediately corrected
the problem. In recognition of the
foregoing, the Commission has previously reduced the penalty assessed against
Petitioner from $$$$$ to $$$$$.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has been
shown which justifies waiver of the penalty associated with the Petitioner's
second quarter XXXXX sales tax liability.
Interest charges are not waived.
It is so ordered.
DATED
this 16th day of September, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner